What to do if you have made a mistake on your French taxes
Tax is a complicated topic, doing it in another language makes it twice as hard and the French tax system has several unique quirks that often catch out foreigners. So what should you do if you realise you have made a mistake or failed to fill out the required paperwork?
It's not unusual for foreigners to make mistakes when dealing with the French tax system and there are certain topics that catch people out regularly - whether it's not realising that you have to file a tax declaration, making a mistake about whether you are a 'tax resident' or forgetting to declare foreign bank accounts.
READ ALSO 10 common tax traps for foreigners in France
So what should do if you realise you have made an error?
The most common mistakes broadly fall into three categories; not completing required paperwork, making a mistake on French tax forms or misunderstanding how the French tax system interacts with the tax system in your home country.
Not filling out the required paperwork
Almost everyone living in France must fill out the annual income tax declaration (déclaration des révenues), while some who are not living in France may have to complete it if they have income or business interests there.
EXPLAINED Who has to fill out a tax declaration in France?
The declaration must also be filled out every year by people who don't actually owe any French tax - including foreign retirees whose only income is a pension in their home country and employees who have their taxes deducted at source from their wages.
This frequently catches out foreigners who assume that if they don't owe taxes in France then they don't need to complete the declaration.
The income tax declaration is an annual task, but there is also a one-off declaration (déclaration d'occupation) for anyone who owns property in France - this includes second-home owners who live in another country.
What to do - the key here is to contact them before they contact you. Failure to fill out the declaration can lead to fines, late fees and worse. However, it's not uncommon for foreigners to make this mistake and tax offices are generally quite understanding if you go and see them, explain that you have made a mistake and ask how you can put it right.
Income tax declarations can be filed retrospectively for the past three years, although you will need to either download a copy of the paper form or ask your tax office for the correct form for this - online declarations can only be made for the previous year.
French taxes offices are open to the public (albeit sometimes with quirky opening hours) on a walk-in basis. Find your local office by Googling Centre des Finances Publiques plus the name of your commune.
You can also contact the tax office by phone, or online to request a telephone appointment. The tax service has an English-language phone line, although operators there cannot help with queries relating to property tax.
More details on how to contact your local tax office HERE.
Whether you will be landed with a bill depends on whether you owed any tax in the first place.
Most people who don't realise that they have to make the declaration are those who have little or no income in France - or whose income has already been taxed at source - and therefore will not face a bill. If you did owe tax, you may have to pay back taxes for the cumulative years.
Made a mistake with the paperwork
The annual tax declaration is a long, complicated document written in formal, technocratic French so it's not a surprise that foreigners often struggle with it.
The most common mistake is failing to declare non-French bank accounts. All non-French bank accounts must be declared, even if they are dormant or have no money in them. This box is easy to miss because it's in the section of the form about investments and stocks and shares that many people assume doesn't apply to them.
The other thing that sometimes catches out foreigners is filing as a household - if you're married or in a civil partnership you file only one declaration containing both yours and your partner's information. If you have grown-up children or other relatives who also live with you, they too are included on the same declaration.
But there are numerous other details that are easy to misunderstand, although in good news once you have filed online for the first time, the form remembers your details for subsequent years.
What to do - back in 2017 the French won the legal 'right to make a mistake'. That means that errors on paperwork can be corrected later without a fear of penalties.
When it comes to the annual tax declaration, the deadline to file is either May or June, depending on where you live. Bills are sent out over the summer, but if you later realise that you have made a mistake you have until December to correct your declaration without fear of penalties. Full details here.
If the deadline to correct has passed, you best option is to contact your local tax office as described above.
Misunderstanding the combination of the French v home tax system
As a foreigner in France it's likely that you may have to deal with two tax systems - the French one and the one in your home country. This is most commonly a problem for Americans who are still required to file an annual US tax declaration even if they have lived abroad for years.
There are several issues particular to Americans - eg having a trust in the US creates problems with the French tax system while having a French Assurance Vie creates problems with the IRS.
However for anyone filing in two countries it can be confusing how the two systems interact. Although France has tax treaties in place with most countries ensuring that you won't pay tax twice on the same income, the French tax declaration requires you to declare all worldwide income - even if it has already been taxed in your home country.
What to do - if it's a question of not declaring global income, accounts or investment in France due to misunderstanding, then you can contact the French tax office as described above.
If your tax affairs are complicated or you have significant financial activity in more than one country it would probably be worth getting professional advice.
Be careful who you choose - you need a professional who is qualified and certified in both the French tax system and the tax system in your home country and who specialises in advising expats.
READ ALSO How to find English-speaking accountants in France
If your tax affairs have any connection with your immigration status (eg you're in France on a visitor visa but work in your home country, or you have a talent passport visa linked to work in France) then it's also worth consulting a specialist immigration lawyer in order to check that your tax arrangements don't have any knock-on effects on your visa or residency card.
When do I need professional help?
If your tax affairs are straightforward and it's just a question of contacting the French office to confess a mistake or query a charge then you can probably do that yourself - the French tax system is designed to be used by individuals and tax office employees are often surprisingly friendly and helpful.
If you have received any kind of penalty notice or legal summons it would probably be worth consulting a professional, especially if you intend to contest the charge as this can be tricky.
And if your tax affairs are complicated or you have significant financial activity in more than one country it would be worth getting financial help.
Because of the USA policy of 'citizen-based taxation', Americans are more likely to need help to ensure that they are compliant with both tax regimes.
READ ALSO Tax tips from Americans in France
As mentioned above, be careful who you choose - you need a professional who is qualified and certified in both the French tax system and the tax system in your home country and who specialises in advising expats.
If your tax affairs have any connection with your immigration status (eg you're in France on a visitor visa but work in your home country, or you have a talent passport visa linked to work in France) then it's also worth consulting a specialist immigration lawyer in order to check that your tax arrangements don't have any knock-on effects on your visa or residency card.
Comments
See Also
It's not unusual for foreigners to make mistakes when dealing with the French tax system and there are certain topics that catch people out regularly - whether it's not realising that you have to file a tax declaration, making a mistake about whether you are a 'tax resident' or forgetting to declare foreign bank accounts.
READ ALSO 10 common tax traps for foreigners in France
So what should do if you realise you have made an error?
The most common mistakes broadly fall into three categories; not completing required paperwork, making a mistake on French tax forms or misunderstanding how the French tax system interacts with the tax system in your home country.
Not filling out the required paperwork
Almost everyone living in France must fill out the annual income tax declaration (déclaration des révenues), while some who are not living in France may have to complete it if they have income or business interests there.
EXPLAINED Who has to fill out a tax declaration in France?
The declaration must also be filled out every year by people who don't actually owe any French tax - including foreign retirees whose only income is a pension in their home country and employees who have their taxes deducted at source from their wages.
This frequently catches out foreigners who assume that if they don't owe taxes in France then they don't need to complete the declaration.
The income tax declaration is an annual task, but there is also a one-off declaration (déclaration d'occupation) for anyone who owns property in France - this includes second-home owners who live in another country.
What to do - the key here is to contact them before they contact you. Failure to fill out the declaration can lead to fines, late fees and worse. However, it's not uncommon for foreigners to make this mistake and tax offices are generally quite understanding if you go and see them, explain that you have made a mistake and ask how you can put it right.
Income tax declarations can be filed retrospectively for the past three years, although you will need to either download a copy of the paper form or ask your tax office for the correct form for this - online declarations can only be made for the previous year.
French taxes offices are open to the public (albeit sometimes with quirky opening hours) on a walk-in basis. Find your local office by Googling Centre des Finances Publiques plus the name of your commune.
You can also contact the tax office by phone, or online to request a telephone appointment. The tax service has an English-language phone line, although operators there cannot help with queries relating to property tax.
More details on how to contact your local tax office HERE.
Whether you will be landed with a bill depends on whether you owed any tax in the first place.
Most people who don't realise that they have to make the declaration are those who have little or no income in France - or whose income has already been taxed at source - and therefore will not face a bill. If you did owe tax, you may have to pay back taxes for the cumulative years.
Made a mistake with the paperwork
The annual tax declaration is a long, complicated document written in formal, technocratic French so it's not a surprise that foreigners often struggle with it.
The most common mistake is failing to declare non-French bank accounts. All non-French bank accounts must be declared, even if they are dormant or have no money in them. This box is easy to miss because it's in the section of the form about investments and stocks and shares that many people assume doesn't apply to them.
The other thing that sometimes catches out foreigners is filing as a household - if you're married or in a civil partnership you file only one declaration containing both yours and your partner's information. If you have grown-up children or other relatives who also live with you, they too are included on the same declaration.
But there are numerous other details that are easy to misunderstand, although in good news once you have filed online for the first time, the form remembers your details for subsequent years.
What to do - back in 2017 the French won the legal 'right to make a mistake'. That means that errors on paperwork can be corrected later without a fear of penalties.
When it comes to the annual tax declaration, the deadline to file is either May or June, depending on where you live. Bills are sent out over the summer, but if you later realise that you have made a mistake you have until December to correct your declaration without fear of penalties. Full details here.
If the deadline to correct has passed, you best option is to contact your local tax office as described above.
Misunderstanding the combination of the French v home tax system
As a foreigner in France it's likely that you may have to deal with two tax systems - the French one and the one in your home country. This is most commonly a problem for Americans who are still required to file an annual US tax declaration even if they have lived abroad for years.
There are several issues particular to Americans - eg having a trust in the US creates problems with the French tax system while having a French Assurance Vie creates problems with the IRS.
However for anyone filing in two countries it can be confusing how the two systems interact. Although France has tax treaties in place with most countries ensuring that you won't pay tax twice on the same income, the French tax declaration requires you to declare all worldwide income - even if it has already been taxed in your home country.
What to do - if it's a question of not declaring global income, accounts or investment in France due to misunderstanding, then you can contact the French tax office as described above.
If your tax affairs are complicated or you have significant financial activity in more than one country it would probably be worth getting professional advice.
Be careful who you choose - you need a professional who is qualified and certified in both the French tax system and the tax system in your home country and who specialises in advising expats.
READ ALSO How to find English-speaking accountants in France
If your tax affairs have any connection with your immigration status (eg you're in France on a visitor visa but work in your home country, or you have a talent passport visa linked to work in France) then it's also worth consulting a specialist immigration lawyer in order to check that your tax arrangements don't have any knock-on effects on your visa or residency card.
When do I need professional help?
If your tax affairs are straightforward and it's just a question of contacting the French office to confess a mistake or query a charge then you can probably do that yourself - the French tax system is designed to be used by individuals and tax office employees are often surprisingly friendly and helpful.
If you have received any kind of penalty notice or legal summons it would probably be worth consulting a professional, especially if you intend to contest the charge as this can be tricky.
And if your tax affairs are complicated or you have significant financial activity in more than one country it would be worth getting financial help.
Because of the USA policy of 'citizen-based taxation', Americans are more likely to need help to ensure that they are compliant with both tax regimes.
READ ALSO Tax tips from Americans in France
As mentioned above, be careful who you choose - you need a professional who is qualified and certified in both the French tax system and the tax system in your home country and who specialises in advising expats.
If your tax affairs have any connection with your immigration status (eg you're in France on a visitor visa but work in your home country, or you have a talent passport visa linked to work in France) then it's also worth consulting a specialist immigration lawyer in order to check that your tax arrangements don't have any knock-on effects on your visa or residency card.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.