Have a Tax Question? Ask a Tax Expert
Are you US citizen or green card holder?
Are you a resident or non-resident in France?
Do you have income from US sources? France sources?
You are deemed to be tax-resident in France if:
Once French residence has been determinated - you would be subject of income tax as a resident.
The general rule that is applied is that, if you spend 183 days per calender year in France, then you are deemed to be resident. However, if you arrive in France with an intent to becoming resident, then you become resident from the very first day you've arrived.As you are US citizen - all your income worldwide is taxable in US. It is possible that you can actually be resident in both countries, and the terms of the double taxation treaty between US and France would determine the rules that applies.
Generally the same income should not be taxed twice and as a resident of France you may claim a credit for taxes paid in US.
You would not be able to claim a credit for taxes paid in France on your US tax return because that is an income from US sources.
I see we are having trouble answering your question.
As I understand the question,
YOu are actually asking for two things:
1. What the requirements are for "Carte De Sejour" and the tax consequences that arrise from that, or
2. The tax obligation requirements alone in the absence of a Carte De Sejour requirement.
There are more than the French requirement that have to be met. The French requirements also have to yield to the tax treaty between the U.S. and France.
So in any case, you can always use the tax treaty for your situation.
I need to know if my understanding is correct, and what you need for proof.
You indicate if there are any rulings? Which there may not be at this time, in which case, all we will have is currently legislation, tax treaty amendments and information provided in the process on official government sites.
Please let me know if my understanding is correct, and if any of the information I can source will be acceptable by you.
Thanks, XXXXX XXXXX I understand. I guess the problem we are having is that as a U.S. Citizen, the tax treaty still says 183 days, regardless of any new law currently passed in France or the EU.
The European Union does not currently have universal tax law, although one is proposed. There is a push to get all EU countries on the same sheet of music in regard to taxes, but for now, France is in fact, eliminating taxes in 2008 and has already eliminated tax on overtime, contrary to the EU.
It would be nice to know where you are hearing these rumors, as I do the U.S. Treasury Tax Panel work for international taxes.
I will gather my international tax sources and forward them to you.