Foreign tax relief
Unless specifically excluded by a treaty, foreign-source income is taxable in France. Residents are entitled to tax credits for WHT paid on certain types of income from other tax treaty countries. Foreign-source income exempt from French tax by virtue of a tax treaty is, nevertheless, added to income taxable in France either to determine the French tax rate applicable to income taxable in France (exemption with progression) or to calculate gross French tax liability, from which tax paid abroad is deducted (tax credit system), depending on the applicable tax treaty.
Countries with which France has double taxation agreements (DTAs) are listed below:
|Albania||Congo, Republic of||Jamaica||Mongolia||Slovakia|
|Australia||Egypt||Korea, Republic of||New Caledonia||St Martin, St Pierre and Miquelon|
|Benin||Ghana||Lithuania||Panama||Trinidad and Tobago|
|Bosnia and Herzegovina||Guinea||Macedonia||Poland||Turkey|
|Bulgaria||Iceland||Malaysia||Qatar||United Arab Emirates|
|Burkina Faso||India||Mali||Quebec||United Kingdom|
|Central African Republic||Ireland, Republic of||Mauritius||Saudi Arabia||Venezuela|
France has signed two new DTAs in 2022, one with Denmark and the other one with Moldova.
However, these agreements have been signed but are not yet ratified by the parliaments of the states concerned (nor France). Therefore, these agreements have not entered into force and their provisions are not yet applicable.