LIST OF PRINCIPAL FORMS FOR INCOME TAX DECLARATION IN FRANCE FOR THE YEAR 2017
All taxpayers subject to income tax in France must report their income for the previous year before May 18th 2017 for a paper return and between 23 and 30 May (depending on the taxpayer's place of residence) for a declaration via the internet. Each statement deals with the entire tax household.
The main printouts to be completed are as follows:
1/ Number 2042: This is the main form that any taxable taxpayer in France has to fill out.
It contains the following information:
- Address of the tax department which will receive the declaration,
- The civil status of the taxpayer and his family status,
- The identity of dependents.
It allows to declare the annual taxable amount of the following revenues:
- Wages, pensions and annuities,
- Income from movable capital,
- Capital gains on stocks and shares,
- Property income.
The most common deductible expenses (deductible CSG, pensions paid, retirement savings) as well as certain income received abroad and taxable in France can be indicated on this form.
2/ Number 2042 RICI: This makes it possible to request reductions as well as tax credits. This mainly concerns:
- Various donations,
- Dependent children pursuing studies,
- The use of home and child care staff,
- Energy-saving expenses in the main residence.
3/ Number 2042 C: This concerns:
- Capital gain on stock options for employees,
- Tax-exempt wages and pensions which must be indicated for the calculation of the effective tax rate,
- Income from capital: deduction of previous losses,
- Plus values and gains,
- Reductions or tax credits on certain rental investments,
- Reduction of tax for subscribing to the capital of small companies,
- Wealth tax.
4/ Number 2042 C PRO: It allows the reporting of all income from independent activities, whether professional or not:
- Agricultural profits and losses carried forward,
- Industrial and commercial profits and deductible losses,
- Non-commercial profits and deductible losses,
- Income of renters in furnished apartments.
Professional income must be separated from non-professional income because the deficits made in the latter category cannot be deducted from other income of the tax household.
5/ Number 2044: In this declaration, the net tax result from unfurnished rentals is determined. The net profit or loss is then reported on Form 2042 to be taxed.
6/ Number 2044 SPECIALE: This is the same statement as the 2044 print above, but it is adapted to the rental income benefiting from special tax deductions.
7/ Number 2074: This form is required to declare:
- Capital gains distributed by a mutual fund,
- Transfers of transferable securities and capital shares,
- Closing of Accounts Stock Savings Plan.
This document is sometimes accompanied by the following annexes:
- 2074 I: For tracking capital gains on tax deferral
- 2074 DIR: To declare the capital gains realized by an executive of a European company at the time of his retirement. This type of capital gains benefits from a reduction of € 500,000.
- 2074 IMP: For capital gains on transfers of securities made by impatriates.
- 2074 ETD: Allows reporting of unrealized capital gains in the event of a transfer of domicile outside of France.
8/ Number 2047: For income from abroad perceived by a French resident. This form has to be completed following the rules on Tax Treaty between France and foreign countries.
9/ Number 2041E: This form is intended for non-residents subject to tax in France on their income from French sources.
10/ Number 3916: This form must be completed by any person residing in France who holds bank accounts in a foreign country. Failure to report these accounts results in significant penalties.
There are still some tax forms used more rarely. We report three:
- 2042K IOM: For overseas investments.
- 2042LE: To pay the special tax on high rents.
- 2042TA: To claim the refund of the additional tax on leases.
A majority of French taxpayers must use only a few of these forms, but it is very important to choose the form that corresponds perfectly to the tax status of the declarant. In addition, some of them are complicated and the total amount of tax payable depends on the proper interpretation of the information contained therein.
To make such statements, it is often preferable (or even indispensable) to call a tax advisor specialized in French taxation especially when you have income from abroad to avoid double taxation.