The contract supports abroad by a French resident must be declared and income earned abroad are taxed in France. This reporting obligation must be performed at the same time as the annual tax return.
Indeed, individuals, tax domicile in France, who purchase life insurance contracts with insurance or similar bodies established outside France are bound to a reporting obligation.
They are required to report along with their tax returns, any references or contracts, effective dates and duration of these contracts and endorsements and reimbursement operations performed during the previous calendar year.
The report covers each of the contracts entered into, modified or settled during the previous calendar year by the declarant or a dependent of the registrant. It affects all insurance contracts underwritten by life insurance organizations based outside of France.
How?
Individuals join statement on plain paper to the annual tax return n ° 2042, underwritten by the tax unit with the tax office which they reside.
What might you do if you do not?
Failure underwriting this statement is punishable by a fine equal to 25% of payments made under contracts not reported.
When the maker of a life insurance policy abroad proves that the Treasury was not prejudiced, the rate of the fine is reduced to 5% within the limit of 1 500 € (750 € for income prior to 2008).
The penalty applies when the policyholder has not declared the existence of contracts of life insurance underwritten outside of France, or when one of the declarative elements required was not supplied .
However, the taxpayer may benefit in some cases, a reduction of the fine.
How do I report income?
The subscriber residing in France who cashed income abroad must complete and file a Declaration No. 2047.
For income received since 1 January 2005, with revenues of life insurance contracts concluded under the freedom to provide services, when the paying of income is established outside of France (with exceptions), the French resident can opt to be taxed at the standard deduction.
And the reduction of € 4,600 or € 9,200?
Since 1 January 2005, contracts signed with companies based outside of France in a state of the EEA (European Economic Area) enjoys the annual allowance of € 4,600 or € 9,200.
products taxable at the income tax contracts of more than 8 years (or 6) entered into with France and insurance companies established in a state of the EEA are aggregated for the application of this relief.
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