The tax reform of French nationals abroad will not take place in 2020 as planned. The National Assembly adopted Wednesday, October 16, a moratorium of one year on this recasting, which had caused great concern among some French outside France. "The tax reform of French nationals abroad must be done, but not to make it confiscatory or difficult to support by the taxpayers concerned"said the Minister of Action and Public Accounts, Gérald Darmanin, in the hemicycle of the Palais Bourbon.
MEPs adopted a reform last year that would eventually align the taxation of non-resident French citizens with that of residents. This reform involved the replacement of a withholding tax on French income by a minimum tax rate of 30% above 27,519 euros of income. Taxpayers could opt for "average rate" taxation, provided they report their global income. This reform provoked sharp criticism among cross-border workers and French retirees abroad who continue to receive French-source income.
The postponement of the measure to 1 January 2021 should make it possible to establish, in the first half of 2020, an impact study "to ensure that the taxpayers concerned are not penalized by the evolution of the rules and to correct the potential effects on board for the financial year 2021", Specify the eight deputies of La République en Marche for French people abroad in a statement.
The elected officials, including Roland Lescure, French deputy of North America, promise to continue working with the government "in the coming months for a comprehensive reform of the taxation of non-residents that will restore tax fairness between taxpayers, regardless of their place of residence, improve the legibility of tax rules and take into account special situations".
