AFA EXpertise 2014 1 DISCLAIMER Our comments are not exhaustive and are limited to broadly outline the consequences of doing business or becoming resident in France. They do not constitute professional advice or a client - accountant relationship. The information provided is not suitable for tax analysis. You are invited to make a personal consultation to review your personal circumstances before taking any decision. AFA Expertise Expert Comptable
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AFA EXpertise 2014 1
DISCLAIMER
Our comments are not exhaustive and are limited to broadly outline the consequences of doing business or becoming resident in France. They do not constitute professional advice or a client - accountant relationship. The information provided is not suitable for tax analysis. You are invited to make a personal consultation to review your personal circumstances before taking any decision.
AFA ExpertiseExpert Comptable
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Who are we ? AFA Expertise SARL
Expert Comptable
UK Firm – AFA Expertise LTD London Principal - Joanna Reintjes
Certified Accountant and Chartered Tax adviser
Expert-Comptable
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AFA Expertise in France International firm Services
- Accounts- Business creations
- Year end business & personal returns- Back office incl payroll & TVA returns- Advice - Taxation – planning and compliance- Transfer pricing- Capital gains tax issues- Property transations- Cross border transactional advice
In English or French!
Throughout the whole of France
FrenchTax residency
Home Centre of economic interest Number of days in France UK provisions now tightened up –
statutory residency test
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Residence in the UK
Extract HMRC Guidance on residency HMRC6
It is important that you understand what we mean by ‘resident in the UK because this will determine what UK tax you have to pay. There is no statutory definition of ‘residence’. Instead, it takes its normal, everyday meaning.It is possible to be resident in the UK under our tax rules and at the same time be resident in another country under that country’s tax rules. This is sometimes
referred to as ‘dual residence’.
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Capital gains tax for French residents Flat Rate 19% CSG 15,5%
Taxation on world wide gains Double tax treaties New provisions Sept 2013
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Capital gains tax for non residents Flat Rate 19% EU residents Flat Rate 33,33% non EU residents PLUS CSG 15,5% - new provision
August 2012 now also applies to non residents
Taxation on French property gains Double tax treaties
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Protection
Exoneration for capital gains tax on sale of French home – principal residence exemption
Conditions – « habitual residence test » Establishing French residency 2 year rule EU longer for non EU 34,50% tax saving!
electricity consumption,car servicing– Taxe d’habitation bill
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Sale of property as non resident – new rules
Sold August 2014 260 000
Bought 2005 200 000
Eu resident
Capital gains tax 3254
See handout
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Expenses
Allowable
ReconstructionIncrease habitable spaceImprovement
Not allowable
Materials« Own » time spentSalaried builderRepairs – gros Expenses used against income tax
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The lettings trap!
Gite let for 10 years on réel regime
Property cost 175000 Depreciation against
income tax 52500
Sold for 285000
Allowable base cost
Only 122500
Extra CGT to pay
18113 Euros
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Abattement – capital gain0 to 5 years ownership 0%
Year 6 to 10 6% pa
Year 10 to 20 6% pa
Year 21 to 22 6% pa
22 years 100% exoneration
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Additional provisions 25% special deduction CGT Fiscal representative for non residents
– extra cost! Process! Keep all your receipts Use registered artisans Decennale Keep proof of payment SCI Abattement CSG still over 30 years
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Questions?
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An English style service
We are not just « English speaking accountants »
We act as an interface bewteen you and the French/UK authorities
The key to our uniqueness is that we can interpret your « anglo » expectations and help you to really UNDERSTAND and PLAN your personal or business affairs around the French & overseas systems.
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The Team
Joanna Reintjes is a bi-lingual dual qualified accountant and chartered tax advisor with many years' experience, and she works with a team of French and English speaking staff in responding to client needs. She has lived and worked in France for many years, speaks German and Spanish, and has worked previously in European finance and international taxation. Joanna is registered to practice UK Tax and audit services as well as being an Expert Comptable.
Our team includes ;-
Rosemarie Hendy – English speaker who ran her own business in France before joining AFA
Julie AMY - English speaker who also runs her own business in FranceAurelia De Almeida – Assistant Accountant Marine Gouet – DCG Trainee Angelique Bourgeat – BTS Trainee
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Summary of Services Accounts and legal compliance Business creation and planning Assistance with arranging finance Autoentrepreneur A-Z back office Payroll including social audits TVA Taxation advice and compliance Property tax Employment compliance UK & French Tax planning UK exit planning and tax refunds
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Focus on Tax Services
Income Tax Wealth tax Corporate tax TVA Bureau de representation Payroll Social taxes including inspections
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Partners French
– Lawyers– Notaires– Banks– Avocats fiscalistes
Anglo phone businesses
– Anglo info– Heslop Platt – French law specialists– Siddalls– Traductions Hilary Reynolds Isabelle Chevalier– Estate agents – Delamarche Agence Arguenon– Money Corp– BML AXA Agence Dinan
