Your Income Tax Declaration

Declaration Tax : In many countries, like the United States, residents are not required to file an income tax unless they exceed a certain amount or are not citizens. In France however, all residents that spend more than 183 days out of the calendar year in France are required to file an income tax.  

Since you are a student, your income will not be substantial and thus easy to file. Even if your income is zero, you should still file the forms. It’s a show of good faith as a French resident that you are following procedure and complying with the bureaucracy, much like obtaining good credit by paying your bills on time. It will help you in the long run, should you ever seek a permanent residence card or naturalization. It also may increase your CAF benefits and may exempt you from the taxe de habitation. (See this article.)

Some of you will have part-time jobs or paid internships during your time in Paris, both of which need to be declared. (Obviously, unpaid internships do not need to be declared.) If your internship or part-time job is less than 3 months, you do not need to declare it. If you are still unsure, consult with your employer.

 

What amount should you  add to your declaration ?

If you are under 26 years old on January 1st of the year of tax (1st january 2017 for the year of revenue taxes 2017 ) and that you are a student, your salaries are exonerated of taxes in the limit of 4 441€ in 2018.

If your salary is above that amount you only declare the part above that amount.

If you are a student and that you are doing an internship, your internship salary, also called “indémnités de stages” are exonerated of taxes in the limit of 17 763€.

If your salary is above that amount you only declare the part above that amount.

 

When should you declare your revenues ?

The due dates for income declaration depend on your department but they are typically available to fill out in mid-April and are due between late-May and early-June. You can download your forms online here or you may receive them in the mail. For the first time filling out, you will need to include basic information such as name, origin country, contact information when you moved to your current address and your former address. If you are planning to be a long-term resident, you can fill your income declaration out online in the future.

 

Overall, the income declaration process is painless and simple, especially for students like you. If you still have questions, don’t hesitate to ask or purchase an hour of consultation with us to help you through the process.

 

 

 

 

Habitation Tax Explained

Habitation Tax : If you’ve been living in an apartment in Paris this year, you might have received something called a tax habitation in the mail. What is it? And why dd you receive it? 

 

Habitation Tax

A tax d’habitation is a municipal tax issued by the government every year in November to be paid by January 1st to owners or tenants of property within their jurisdiction. Do not confuse this with a “taxe fonciere” which is a municipal tax to be paid by the owner of the building, not the tenant. You are liable to pay for the tax if you have been living in your current lodging since January 1st of that year. Even if you only stayed in your apartment for a couple of months, if you were in the apartment on the 1st you are required to pay.

The habitation tax is determined by the size of the apartment, the income of the owner, as well as a number of other tax factors. It can be anywhere from €90 to €3,000. When you sign the lease for your apartment (or for a student residence),  check to see if it is listed as a main residence or a second residence, as second residences have a much more expensive tax. Also, when you fill out your tax form, make sure to unclick the box that says you have a TV in the home if you do not have one, as this will also raise the price of the tax.

 Why should you pay ?

If you are still unsure whether you have to pay, the first thing you should do is review your lease agreement. Sometimes the habitation tax is included in the deposit fees for the apartment and therefore you have already paid for it. If your lease is unclear, contact your landlord and ask whether you have to pay it or not. Sometimes apartment owners in Paris do not register with the tax office that they are renting and therefore must pay the habitation tax themselves. However, this is unlikely.

If you are renting a room in an apartment or sub-renting an apartment (meaning you have a contract with the person renting the apartment not the owner) then you don’t have to pay the habitation tax.

If you are living in a public student residence, you do not have to pay this tax. However, if you are living in a private student residence, but moved in after January 1st and are living there for a short time period, you also do not have to pay the tax. If you are unsure, contact your administrative office.

Unfortunately, since you are an international student and are not a tax paying French citizen, you are not entitled to any tax reductions. Most likely, you will have to pay the tax and can do so a number of ways. You can simply take a check or mail one into your local tax office, indicating your address, identification and lease agreement. Or, you can pay online and create an account here and elect to pay the lump sum or in monthly installments. You will need your bank account details and your tax information found on the invoice you received in the mail in order to make this account.

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This is the page where you will create your account. As you can see, there are three required numbers all of which are found on your third tax d’habitation, so make sure you keep the original document. The first two numbers are found on the first page and third is found on the last page of the invoice. If you cannot find these numbers or you have lost your tax d’habitation, go to your local tax office.

The good news is that the government is planning on eradicating all of the habitation taxes by 2021. So if you are planning on living in Paris for a long time, you’re in luck!