French tax residents must declare their global income. This includes the interest from your bank accounts from outside France.
Declaration of foreign bank interest
Let’s take an example of a UK bank interest or an Indian NRE Fixed Deposit interest. Both are not taxed in their respective countries and so do not qualify for a tax credit in France 🇫🇷.
Online declaration:
Step 1: Check the box for Annexure 2047 tax form.
Step 2: In the following screen, check the box titled “Des valeurs et capitaux mobiliers imposables en France”. If you do not do this, you will not see the lines from 200 to 276.
Step 3: 2047 tax form
- Skip lines 232 to 240, because there is no tax credit applicable equal to tax paid in UK/India or France.
- Line 250: Add the total gross interest in euros, using the forex rate from the date of receiving the interest.
- Lines 251 and 252: Enter the same value as line 250.
Step 4: 2042 tax form
- Line 2TR: Carry forward the value from line 252 or click the “report” option for an automatic entry.
- You should check the final value in line 2TR, which must include income from both French and foreign bank interests.
- If the automatic entry is wrong, correct it manually.
Offline declaration:
- The line numbers are the same. However, automatic entries are not possible like online declarations. So, you must manually enter the information required.
Hope this is easy to understand and avoids any confusion in completing the tax declaration.
Bonus Information:
- A very common misunderstanding that I see in multiple places about line 260. Line 260 is suggested for foreign bank interests, dividends, etc.
- This is not completely true. It should be used only when a French entity issues a dividend, interests, etc in a foreign country.
- So, line 260 shouldn’t be used for UK or Indian bank interest income
Other useful French Tax articles
You can find a lot of useful articles about the French tax declaration here Income Tax
Some examples are,
- French Income Tax Declaration Deadlines in 2024 for AY2023 income
- How to do your First income Tax declaration in France?
- Essential Documents for Income Tax declaration in France
- List of Income Tax Declaration Forms in France
- 2024 Income Tax simulator for income earned during 2023
- Form 3916 – Declaration of Foreign Bank, Insurance and Investment Accounts
- Declaration of Indian Income in France based on DTAA
Disclaimer
- Any finance-related information shared is not professional legal, tax, or investment advice.
- The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code.
- Investment carries risks of loss and past performance does not guarantee future performance.
- For all professional advice, please consult a certified financial planner, CGP, CIF, tax consultant, etc.
Dear Prasanth,
You mentioned only 2042 form submission of online version. However, for Offline which 2042 form I need to use. I see 2042-C, 2042-IOM etc. in impots site.
Also, I came in 2023 May, so that means I will consider the interest, dividend I received in India after May should be declared only, and not before May even France Tax Year starts from January. Kindly clarify this point as well.
I appreciate your help.
Thank you!
Hello,
The main 2042 form is not yet published for offline declarations. Please refer to https://prasanthragupathy.com/2024/03/tax-list-of-income-tax-declaration-forms-in-france/
Yes, worldwide income earned only after reaching France is relevant for French tax declaration.
Article – How to publish Foreign bank interest.
“ Step 3: 2047 tax form
Line 231: Add “Royaume-Uni” for UK or “Inde” for India
Skip lines 232 to 240, because there is no tax credit applicable equal to tax paid in UK/India or France.”
On return line 232 has the option to add the country name. May be you can update as “skip lines 233 to 240”
Hello, I have simplified it even further
Hi Prasanth,
Thank you for the very useful article.
Could you please help me with the following query- I arrived in France in Setpember 2024 and received my salary in my Indian account till August 2023. How and where do I declare this in form 2047?
Hello Siddhi,
Any income earned before reaching France is not taxable in France.
Hi Prashanth,
Few questions related to India rental income declarations in France;
1. Is 2047 the correct annexure for declaration of India rental income?
2. According to DTAA India rental income is exempt from taxation in France, Correct?
3. Is there any effect of India rental income in the tax brackets in France? e,g. If there’s a 5k Euro India rental earning are declared in France, will this go over the top of total taxable earnings in France and hence it adds up to the additional tax?
4. What is the cell number to declare India rental income in the main tax declaration form?
Thanks in advance for your exceptional and great work.
Kushal
Hello Kushal,
For Indian rental income,
1. All the relevant Tax Forms are 2042, 2044, 2047 and 2042-C PRO. Depending on the situation, the forms will change.
2. So, a tax credit equal to french tax will be given.
3. Yes, the rental income will increase your total income and so the tax brackets too.
4. It depends on the exact type of income. There are multiple lines. Difficult to explain here.
Hi Prashanth,
I read that there is a DTAA between India and France and there is tax credit applicable for tax paid on interest income from India of 10% is this wrong?
I saw that you were saying there’s no tax credit
hello,
Yes, but it depends. I have explained the two cases below.
NRE & FCNR https://youtu.be/y6VuAEjcvnI
NRO https://youtu.be/N4EtsWrC-rg
Hello Prashanth,
Thanks a lot and in 3916 form I see that you say we don’t have to show all the fixed deposits, I’ve already shown all the fixed deposits in there, is that a problem?
Hello, If you had declared the bank accounts, there is no requirement for declaring the FDs inside them.
The FDs aren’t separate bank accounts. So, you can correct your declaration when it’s possible.
Hello Prashanth, Thanks again, just want to know, is there any problem if I declare the FDs?
Do I have to file again deleting the FDs?
If it’s me, I would correct my declaration by removing the FDs. So, it’s your declaration & so your decision.
Complicating things unnecessarily isn’t good.