IGAL UPDATES //

French Tax Authorities reassure non-residents!

Due to the pandemic, people who are ordinarily domiciled outside of France but were present at the time of the quarantine risked reclassification of their non-resident status with the related tax consequences. The tax administration has just given a clear answer on the subject.

Regardless of their nationality, persons are considered to be domiciled in France for tax purposes if:

  • their home is in France;
  • they perform a professional activity in France (under employment contract or otherwise) unless it is clearly a secondary/ancillary activity;
  • they have a center of their economic activity/interests in France.

Thus, it concludes that a temporary stay in France due to restrictions of movement (“travel ban”)  is not likely to bring about a change in tax status.

 

by Aziz Ghiyati

Oxea Audit & Conseil