SCIENCE

1. SCIENCE ACCUEIL Information session about taxation and tax return INRIA - April 25th, 2013

2. TAXES IN FRANCE • In France, your income must be declared to the Tax Office (« Centre des Impôts »). • You are required to declare in 2013 the income you received (salary or scholarship income) in 2012. • From April 19, 2013, remember to complete your 2012 tax declaration with the taxation office of your place of residence. • In France, filling a tax declaration does not necessarily mean that income taxes have to be paid. The declaration is also used to assess the percentage of local taxes you need to pay if you rent a place to live. • BEWARE : Failure to declare may result in serious administrative difficulties.

3. IN MAY… • For most of people working in France but also for retired workers, it is time to complete theincome tax declaration form (« formulaire de déclaration des revenus ») to declare their income of the previous year. • This form has to be completed, signed and sent back before May 27th. The deadline varies depending on your situation. You may check by asking Science Accueil.For example, tax return can be done later if it is done on line but beware : if you declare your income for the first time, it won’t be possible to do it on line. • In year X, one declares the income of year X-1 : in May 2013, with the tax return form 2012, one provides the tax office with one’s income in 2012. • Please note that « to declare » your income in France does not mean « to pay » for income tax in France. Indeed, France has signed a lot of fiscal conventions with different countries to resolve special cases or avoid dual taxation.

4. Who should declare • According to the tax code, there are several circumstances for sending a tax return to the « centre des impôts ». For example : - If you receive income from a French source - If you have a professional activity, salaried or not, unless it is a minor activity - If France is your main country of residence (last year you spent more than 183 days in France) • These circumstances are applicable to the vast majority of researchers coming to France for research work. Fellowship holders (post-docs) are included, and only students with a grant do not have to pay income tax, under certain conditions. Scientists with a resident’s permit with the mentions « scientist », or « salaried worker » or « temporary worker » must declare their annual income.

5. To get your tax return form At your local Centre des impôts To find the address of your tax office, go to : www.impots.gouv.fr - Click on « contacts » - At the bottom of the page, fill in the box with your home address - Then, within the window that appears, click on « centre des impôts » The tax return form should be available online. The nearest Centre des Impôts is situated : Centre des Finances Publiques 3 rue Emile Zola 91874 Palaiseau Cedex Mon-Fri 8:45-12:00, 13h30-16h15.

6. Bilateral conventions As a scientist you may ask to benefit from a bilateral convention between your country and France when completing your tax declaration the first year of your stay in France. Then you will receive an official document from the tax office to confirm or not that you are exempted from paying in France, provided you pay in your country of origin. If you are exempted from paying in France you must pay in your country.

7. Where is your tax residence? A scientist working in France, who comes from the USA where he was a resident, and paid his taxes according to a USA-Russia convention, is considered a tax payer in Russia if he paid his taxes in Russia. Once in France, he will need to look for a convention between Russia and France.

8. You worked in France less than 183 days If you worked less than 183 days in France in 2012 you don’t have to complete a tax declaration in France. Your employer has to complete a declaration n°2494 and withdraw the taxes directly from your salary. However you must declare the revenue you earned in France in your country of origin. You can ask to be exempted from paying taxes on your French revenue due to the fact that the taxes have already been withdrawn from your salary (it is indicated on your payslip: “Retenue à la source”).

9. You worked in Francemore than 183 days If you worked more than 183 days in France in 2012 you have to complete a tax declaration and pay in France taxes on your income earned in France and abroad. France has signed more than a hundred fiscal conventions in order to avoid a double taxation.

10. 2 categories of conventions There are 2 categories of conventions : • Those allowing to be exempted for 2 years regardless the duration of your professional activity in France. • Those allowing to be exempted when the duration of the professional activity in France is less than 2 years.

11. Exemption for 2 years Conventions allowing an exemption for 2 years regardless the duration of the professional activity in France : During the first 2 years of their activity in France (3 years for American citizens), these scientists will declare in both countries and pay taxes only in the country where they paid taxes before coming to France.

12. Exemption for less than 2 years Conventions allowing an exemption when the scientist stays less than 2 years in France : If a scientist stays more than 2 years in France, he will have to declare from the first year and pay taxes in France from the 3rd year retroactively from the beginning of his stay in France. • Here is the list of countries with this kind of convention : • Australia • Bolivia • Ireland • Japan • Singapore • Sri Lanka • Thaïland • Venezuela • Ex-Yougoslavia

13. Bilateral conventions • When there are no relevant clauses in a convention, the researcher is subject to general tax law and there is no exemption. • BE CAREFUL : fiscal measures contained in a fiscal convention must not be interpreted personally. You may need the opinion and analysis of your situation by a professional. Pleaseget in touch with your local « Centre des impôts » or with Science Accueil. • Opting for a bilateral agreement can sometimes be useful, but you can also decide to set up your tax base in France. This is simpler and may be more economical (in particular for some social benefits) as long as the tax code has no rules prohibiting this. Make some assessments to work out what really are the best options for you! (If you plan to stay in France for several years and/or come with your family, if you already have a tax bill or tax exemption or may qualifiy for certain tax reductions, making France your tax base could be a practical solution).

14. Where to find bilateral conventions • Go to the government’staxwebsite : http://www.impots.gouv.fr - In the heading « documentation », click on « international » - At the bottom of the page, under«Rechercher une convention fiscale », select the country whereyou have paidyour taxes beforegoing to France.

15. Tax return form • In May, French residents who have already declared income in France in the past receive their tax return form by post mail. It is pre filled in. • The others who must declare their income but haven’t received the form can get it from : • their local Centre des impôts • the taxation website • www.impots.gouv.fr

16. How to declare your income : Check whether a bilateral convention between France and your fiscal country exists. If there is a convention : Fill theCERFAtax form with information about you and your situation (civil status, composition of the family, income « net imposable »…), write down the date and sign it. Join a letter in French explaining your situation as a researcher. Join a proof of your status as a researcher (for example a copy of your residence permit as a scientifique and/or a copy of your contract). Join a copy of the bilateral convention.

17. Letter explaining your situation as a tax exempt researcher Madame, Monsieur, Je travaille en France depuis le (starting date) jusqu ’au (date of the end of your contract) en tant que chercheur à (workplace, ie : INRIA, CEA Saclay, Université Paris Sud…). En ce qui concerne ma déclaration de revenus, je souhaite bénéficier de l’article N (number of the article about scientists) de la Convention fiscale entre (your usual fiscal country) et la France du (date of the convention) pour la période indiquée ci-dessus. Vous trouverez ci-joint ma déclaration de revenus pour l’année 2012, une attestation de mon statut de chercheur ainsi que la dite convention. Je vous remercie de l’attention que vous porterez à ma situation. Veuillez agréer, Madame, Monsieur, mes salutations respectueuses. …

18. How to fill in the form • Today we are helping you to take the first steps in declaring your income but if you need more help, especially to ask for information about tax deductions that you can benefit from (maintainance allowance, etc), you may get in touch with the French tax authorities or Science Accueil. • In order to know the amount of income to declare, have a look at your last pay slip under the box « revenu net imposable » and report this amount on the form • Please read our translations of the tax return form. They will help you to complete it alone.

19. Translations

20. More forms to fill in… • You may have more forms to fill in if : • you were receiving income from abroad during the year and would like to opt for an international agreement. • you continue to receive income from France after your departure. • you have other income or expenses than those mentioned on the main declaration form.

21. BEWARE ! • If you don’t declare your income, you may be surprised to receive a « mise en demeure » later on ! • Tax office has information from employers and knows about your salaries. That is why one can also receive pre filled tax declaration forms. • We recommend you to go to your tax office before leaving France in order to give your new address and fill in papers if needed.

22. Deadlines • BY MAIL on Monday 27st, May, at midnight at the latest (paper declaration sent by post mail - postmarked!) • ON LINE - for departments within the Parisian area (75, 78, 91, 92, 93, 94, 95), you can fill in the online form until June 11th (midnight). Please note that online tax return are only suitable for classic cases and if you have already been taxed in France. If your situation is unconventional (for example if you are covered by an international convention, receive income from abroad or have unusual family circumstances), you must inform the tax office in writing. In this case, the online procedure is not recommended.

23. HELP DESK • YOU NEED HELP WITH YOUR TAX RETURN ? Go to your local tax office « Centre des Impôts » for unusual situations or to the Mairie of your residence. Otherwise ask Science Accueil ! Email : contact@science-accueil.org Address : Cityparc de la gare d’Orsay 6 bd Dubreuil 91400 Orsay RER B « Orsay-ville »