While inflation-related adjustments to personal income tax thresholds should help keep the tax burden stable for individuals, there are some new reporting requirements in respect of the exit tax, as well as new penalties for fraud. Foreign employers will no longer be able to delegate to another party (including employees) the responsibility to deal with their own obligations to register and pay contributions. Of course such employers can seek professional assistance to deal with their obligations but the responsibility is theirs.
For new assignees inbound to France, pre-departure and/or on-arrival conversations with those who will be subject to French tax law should include mention of applicable tax rates, thresholds and brackets, exemptions, credits, allowances, and reporting and other administrative responsibilities and the impact on the assignee.
Employers and employees concerned about the effect of the above-noted changes and how to budget for and otherwise plan the employee’s assignment, should contact their qualified tax professional or a member of the Global Mobility Services team with KPMG in France (see the Contacts section).