impatriate An employee who changes undertaken as part of an intra-group or signing a contract with French company in which it was previously posted loses the benefit of favorable tax treatment.
This spring's fiscal rescript dated 19/10/2010
Transcript rescript Question:
The tax regime for expatriates under section 155 B of the General Tax Code (CGI) is maintained when it before December 31st of the fifth year following installation of the employee (or officer) in France, the employee changes employer or business?
Answer:
1. The special tax under section 155 B of the CGI applies to employees called from abroad for employment in a company based in France. The employees concerned must not have been tax resident in France during the five years preceding their taking office. It therefore applies, all other conditions are also met, under a specific job held under an employment contract or a social mandate concluded between the employee concerned and an individual company, established as the case abroad or in France.
2. Any change of employer or business equivalent to the application of this system to a new term of office, under a new labor contract. This is particularly true when the employee comes to work with a company other than that for which he settled in France, including in the framework of an intra-group, or when the foreign firm is end its detachment and the employee sign an employment contract with the French company in which he serves. Under this new job (or this new mandate), the employee (or officer) can not benefit from the special tax under section 155 B of the CGI, when it was fiscally domiciled in France during the previous calendar year.
3. The fact that this change occurs within five years after the installation of the employee (or officer) in France is irrelevant to the rule stated above.
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