How-To Guides  Completing official paperwork

How to complete the tax declaration with the

French tax office (officials)
(v.23.0)

Who is this guide for?

​O fficial staff members

What are the key steps to follow?

N.B. This guide is not intended to render comprehensive legal, accounting or tax advice. Readers are
encouraged to seek advice from the French tax authorities or external professionals before taking
action on specific or complex issues and/or if they are uncertain of their situation.

1.            If you are grade A5, A6 and A7 or unclassified officials, you are not French nationals and you
were not residents of France at the time of joining the Organisation, you will receive a further note
concerning your specific tax situation.

2.            All officials, even if they do not have any taxable income, must submit a tax return to the Tax
Centre of his/her residence in France before the deadline published annually by the French Tax
Authorities . The filing of a tax return will avoid automatic taxation and establish your residence and
family situation with regard to taxes other than income tax (for instance, the "taxe d'habitation"). If
you have already declared your income to the French tax authorities in past years, you may file your
declaration online. An on-line declaration is compulsory for any person who would have an internet
access from home.

3.       How to obtain the form?

French income tax declaration forms are normally sent automatically to taxpayers who declared their
income the previous year. The main income tax form is N° 2042, possibly completed by form N° 2042
C. If you fill out the form for the first time, or if you have not received the forms in time or need any
other required declaration forms (declaration of income from property, capital gains on securities or
property, income received abroad, overseas bank accounts, etc.) you may obtain them from the
French Tax Authorities website or from the town hall (“mairie") for the area where you live. The French
Tax Authorities website also has considerable further information about tax in France.

4.       How to complete the income tax form (N° 2042)?

OECD officials, whether French or non-French, are not required to declare in the salaries and
emoluments received from the Organisation in the income-tax return or in a separate statement
or annex. However, they must tick (check) box 8FV entitled “Revenus exonérés non retenus pour le
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 calcul du taux effectif (revenus d'organismes internationaux, de représentations étrangères)", in §8
(“Divers"), on the last page of form N° 2042.
 
N.B. The tax declaration form contains a line TI in paragraph 8 (“Divers") entitled "Revenus
exonérés non déclarés, retenus pour le calcul du taux effectif". This line only concerns
international civil servants to whom the rule on "effective rates" applies, by virtue of the provisions
in the Headquarters agreement applicable to the Organisation or in texts defining the privileges
and immunities of the latter. This is not the case of the OECD. In consequence, OECD officials,
whether French or non-French, are not required to complete this line.

If, during the past year, neither you, nor your spouse, or dependent children have received income
from sources other than the Organisation (for example rents, salaries, taxable capital gains,
royalties, interests, dividends, etc.) a declaration should be made to the tax authorities stating that
taxable income is nil ("néant") in box 1AJ (or 1BJ) in §1 (“Traitements, salaires, etc.") of the tax return
form n°2042.

If you or your spouse or a dependent child have received income (other than that from the
Organisation) or capital gains subject to tax in France during the past year, this additional income
should be declared. If such income is income from property, non-commercial gains or industrial
and commercial gains, supplementary annex forms may be necessary.

     5.        Do I have to attach other documents to my tax return?

If you complete a paper copy (1 st declaration) of the tax return you must attach a letter following
this model, addressed to the "Inspecteur des impôts" for the area where you live in France, and the
certificate ("attestation") below, extracted from your kiosk which declares that you are an official of
the Organisation and states the exemption, on French territory, from tax in respect of OECD salary
and emoluments. Please consult the User guide to extract your attestation.

If you file your declaration on-line, you do not need to attach the standard letter and "attestation",
but you must however keep them in case of a control by the French tax authorities ("Inspection des
Impôts" or "Centre des impôts"). An on-line declaration is compulsory for any person who would
have an internet access from home.
 
6.   Where must I send my declaration and when?

If you file a paper tax declaration, then you need to send this (or deliver it personally) to the Tax
Inspector's Office ("Inspection des Impôts" or "Centre des impôts") of the place where you live. You
must do so by midnight on the last day deadline (unless there is an extension, which will be
announced in the press).
 
If you file your return on-line, you will be given more time according to your residence zone.
 
 7.   Then what?
 
If applicable, you will receive one or several assessment form(s) ("avis d'imposition") indicating any
tax you might have to pay.
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 8. How to file - specific cases:
 
Life insurance or bank accounts abroad:

Your attention is drawn to the fact that, since 1st January 1990, all individuals who are considered
resident in France for tax purposes must declare life insurance contracts subscribed with a foreign
company, as well as bank accounts and equivalent accounts opened or in use abroad for personal or
professional transactions (failing to declare foreign bank accounts and equivalent accounts, will make
you liable to sanctions). This should be done by ticking box 8TT and/or 8UU in §8 (“Divers") on the last
page of form N° 2042 and joining, for life insurance contracts, a special note containing the
references of these contracts, and for foreign bank accounts, a special form N° 3916 or a list of these
accounts.

In application of the second subparagraph of paragraph IV of Article 1736 of the French “Code général
des impôts", the fine for failing to declare foreign bank accounts is set at EUR 1 500 (or at EUR 10 000
for a bank account opened in a country which has not concluded a convention allowing access to
banking information with France).

The maximum fine for failing to declare a life insurance contract set up in a foreign country is set at
EUR 1 500. 

Daily compensation paid by the French Social Security under sickness insurance:

Since 1979, daily compensation payments received by persons insured under French Social Security
are, in principle, subject to personal income tax in accordance with rules applicable to salaries and
wages. In the event of sick leave (or non-activity for medical reasons) of officials still affiliated to
French Social Security, the Organisation directly receives the daily compensation paid by French
Social Security but continues to pay staff members the whole of their salaries. To the extent that daily
compensation payments are a substitute for emoluments, they qualify for the same immunity from
tax. Officials of the Organisation who have been on sick leave (or non-activity for medical reasons)
should not, therefore, enter these daily compensation payments in their income tax declarations
(officials are usually informed of this amount by their social security centre). The daily compensation
received by an official's spouse or dependent child should, however, be declared.

Change in family status during the previous year (Y-1):

Taxpayers who married or registered a PACS in the previous year (Y-1), shall file in the next year (Y) a
single joint income tax return for income received for the entire previous year (Y-1). This return,
bearing the names of both spouses or PACS partners, will report all of the income, expenses,
deductions and reductions for both parties for the entire year.

However, if they so choose, they may opt for separate taxation of their respective incomes for the
entire year in which they are married or have registered a PACS. This option is irrevocable for the
previous year incomes (Y-1). Each taxpayer would then file an individual return for the entire year,
including all personal income plus a rightful share of joint income. If the amounts of their respective
shares cannot be determined, any joint income shall be split into two equal portions. Taxpayers who

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were registered in a PACS in the previous year (Y-1) and then got married the same year are not
allowed to opt for a separate taxation.

Similarly, in the event of separation, divorce or dissolution of a PACS in the previous year (Y-1), each
of the taxpayers shall file separately, reporting both individual income and a rightful share of any
joint income. If the amounts of their respective shares cannot be determined, any joint income shall
be split into two equal portions.

Death

In the event that a taxpayer died in Year-1, the surviving spouse or partner must file two reports: a
joint return from 1st January to the date of death; and an individual return for his or her own income
from the date of death until 31st December in Year-1. Both income tax returns (joint and individual)
with the name of the deceased taxpayer in Year-1 can be filed by the regular due date.

Impôt de Solidarité sur la Fortune (IFI) :

Taxpayers whose net taxable property assets are above 1.3 million Euros must declare the amount of
that property assets and any possible tax reduction on the 2042-IFI income tax return annex form (on
line from the website http://www.impots.gouv.fr/). Except for IFI non-resident taxpayers who do not
receive any French income and will need to follow different modalities for the tax return (2042-IFI-
COV without income).

The deadlines for filing and payment are the same as for the N-1 income tax declaration.

What other key information is useful?

Council experts and temporary staff members are fully subject to French income tax legislation.

This guide does not deal with the position of officials vis-à-vis the tax legislation of other countries
nor with that of their families.

Supplementary Protocol N° 2 to the Convention on the Organisation for Economic Co-operation

and Development provides that officials of the Organisation shall be entitled, in the territory of the
Contracting Parties to the Convention for European Economic Co-operation, to the privileges,
exemptions and immunities provided for in Supplementary Protocol N° 1 to the latter Convention.
In particular, one of the consequences of Article 14 (b) of that Protocol N° 1 is that officials of
OECD are, on French territory, exempt from tax on the salaries and emoluments they receive from
the Organisation. Within the meaning of this Protocol, "officials" also extends to unclassified staff.

However, you are reminded that OECD officials who are based at Headquarters are as a general
rule considered as being resident for fiscal purposes in France. The fact that officials benefit from
a tax exemption on emoluments paid to them by the Organisation has no consequence on the
residence for tax purposes. Officials, and the members of their family residing with them in France
are liable to French income tax on their income received in France other than remuneration
received from the Organisation, as well as on their income received outside France, subject to any
relevant provisions contained in bilateral taxation conventions.

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 OECD officials normally stationed at OECD headquarters in Paris who are (or have been)
exceptionally teleworking outside France due to the COVID-19 pandemic for a period exceeding 80
working days in 2020 may face tax liability in the country of teleworking, on the income perceived
in 2020 from the OECD.

- This potential tax liability is independent from the Organisation and results from different
interacting factors related to both the personal situation of the Official and the country concerned
(e.g international agreements, domestic tax law and the time spent in the country).

- The Organisation is not in a position to reply to individual questions on fiscal matters or income
tax. You are thus invited to consult with a professional advisor in order to determine your personal
situation in this regards, and for advice concerning the domestic tax law of the relevant
jurisdiction, including the related filing and reporting obligations.

Officials are informed that the annual certificate from the Head of Human Resource Management
is not always regarded as sufficient by the French Tax Authorities to establish that you are entitled
to exemption from income tax. In such cases, the official concerned should promptly inform
Human Resource Management (e-mail only, addressed to HRM Admin) and provide any relevant
details concerning the nature of their difficulties, so that the Organisation may intervene, where
appropriate, with the French Authorities.

What reference documents does this guide depend upon?

Supplementary Protocol N° 1 and 2 to the Convention on the Organisation for Economic Co-
operation and Development

My OECD Kiosk 2.0

Which guides are linked to this process?

How to complete the tax declaration with the French tax office (temporary staff)
How to request exemptions on housing tax and a television license

What tools does this guide refer to?

My OECD Kiosk

Contact for more information

[email protected]

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Last modified: 20 May 2021

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