Double Taxation France

marty78

Hi All

Apologies for my lack of Tax knowledge but I hope someone can shed some light on the situation that I find myself in .

I’m Irish and I’m working for a company based in Ireland. I’m paying my tax in Ireland however I’m now working and living in France. Until last October I had E101 declaration stating that I was paying my tax in Ireland. This has now expired. I have also gone over the 183 days threshold so I guess I’m automatically a resident of France now. I have researched the double taxation agreement between Ireland and France but I’m unsure how the agreement applies to me.

My questions are
Do I have declare my earrings in France?
Do I have to pay tax in Ireland and France?
Any help or information would be appreciated.

Thanks

farrentax

Hi,

Just to clarify an E101 means that you are paying your PRSI contributions in Ireland, not your tax. These are normally applied for to keep your PRSI contributions up to date. You should probably check to did your Irish employer deduct PAYE. Normally when an employee is sent abroad to work the employer applies for what is known as a PAYE exculsion order no PAYE is deducted. The tax is then payable in the country you are working in (France). In addition if you are Irish resident you have to complete an Irish Income Tax Return, you will be given a credit for any foreign tax deducted.

You mentioned that you have now been in France for 183 days, the 183 day rule is the rule to determine residency, the day requirements may be different in France. This will need to be clarified. Remember also you may still be Irish resident if you spent 280 days in aggregate over 2 this tax year and last tax year and therefore still liable to Irish tax. Also, if you have other sources of Irish Income this may remain taxable in Ireland even if you are no longer resident.

I refer to your specific queries.

1. Do you have to declare your earnings in France. You need to check their residency rules. Also as your employer is absconding you to France, I would imagine that they are supposed to register as an employer in France and deduct French tax from your salary.

2. Do you have to pay tax in Ireland and France. As discussed above in the years in which you are Irish Tax resident you will have to complete an Irish Income Tax return and pay any additional tax that arises. If you are no longer resident in Ireland you will remain ordinarily resident for 4 years and may be subject to Irish tax if you have Irish sources of Income in excess of €3,810 per annum.

I hope this helps.