The executive’s mode of remuneration
You are a foreign executive called either under inter-group mobility or directly from abroad, to carry out a professional activity in France.
Taxation in France
Executives coming to carry out a professional activity in France can benefit from certain specific tax breaks. This regime known as the “impatriates tax regime” is provided for in articles 155 B and 81-1° of the French General Tax Code.
The executives affected are the following:
- In public limited companies (SA) or simplified joint stock companies (SAS): the chairman of the board of directors, the managing director, the deputy managing director, the provisionally delegated administrator, the members of the executive board as well as any administrator or member of the supervisory board charged with special duties;
- In private limited companies (SARL): directors holding a minority or equal stake;
- In other companies subject to corporation tax: executives subject to the employee tax regime.
To benefit from the tax breaks provided for by this regime, certain conditions need to be met:
- You need to be a senior executive who has come to carry out a professional activity in France, either under inter-group mobility or you have been directly hired from abroad for a position in France
- You must not have been resident in France on an uninterrupted basis for 5 calendar years before taking up duties
- You must establish your tax residency in France from taking up your duties. The advantages provided by the impatriates tax regime are as follows:
- Tax relief on salaries: tax relief on the impatriation bonus or on 30% of the salary as well as the share of remuneration corresponding to the days worked abroad (strict conditions to be verified);
- Relief on passive income: 50% relief on financial income and capital gains from divestment of foreign-source company shares as well as 50% on foreign-source copyrighted products;
- The limitation of tax on well-located real estate assets in France (assets in excess of €1.3 million) for a limited period;
The impatriates regime applies for a limited period.
Altexis offers you full support in your capacity as an impatriate executive, in particular:
- We can check if you meet the criteria to benefit from the impatriates regime
- We can calculate the taxable amount and the tax relief on your income
- We can help you file your income tax return in France