Publications

The exemption of the impatriation premium is subject to compliance with the reference remuneration provided for by law and clarified by administrative doctrine. It is within this framework that the tax judge provides guidance on disputes between taxpayers and the authorities. THE LAW If the taxable remuneration after exemption of the impatriation premium “is lower than the remuneration paid for similar functions within the company or, failing that, in similar companies established in France, the difference is added back to the taxpayer’s taxable base” (Article 155 B I‑1, last paragraph of the French Tax Code). The exemption of the impatriation premium therefore requires compliance with a minimum level of taxation, assessed by comparison with a reference remuneration. ADMINISTRATIVE GUIDANCE This comparison is made on the basis of net taxable remuneration determined according to the rules applicable to salaries, “excluding in particular amounts paid or gains realized under employee...

The impatriate tax regime provides an autonomous exemption mechanism for days worked abroad. THE LAW “The portion of remuneration corresponding to activity performed abroad during the period defined in paragraph 1 is exempt where the stays abroad are carried out in the direct and exclusive interest of the employer” (Article 155 B‑I‑2 of the French Tax Code). This exemption applies until 31 December of the eighth calendar year following the year in which the impatriate takes up duties in France (duration referred to in Article 155 B‑I‑1 of the French Tax Code). Upon election, either the portion of remuneration exempted in respect of the impatriation premium and days worked abroad is capped at 50% of total remuneration, or the portion of remuneration exempted in respect of days worked abroad is capped at 20% of taxable remuneration after exemption of the impatriation premium (Article 155 B‑I‑3 of the French Tax Code). ADMINISTRATIVE GUIDANCE Remuneration relating to activity performed...

The statutory exemption of the impatriation premium (Article 155 B‑I‑1 of the French Tax Code) sometimes requires compliance with specific contractual formalism, which has given rise to contrasting case law. ADMINISTRATIVE GUIDANCE The actual impatriation premium The actual impatriation premium “must appear distinctly in the employment contract or corporate office agreement of the relevant employees or executives, or, where applicable, in an amendment thereto, drawn up prior to taking up duties in France” (BOI‑RSA‑GEO‑40‑10‑20‑20250811, n° 60). “However, it is accepted that the ‘impatriation premium’ may be determinable on the basis of objective criteria mentioned in the employment contract or corporate office agreement. This is the case, for example, of an ‘impatriation premium’ consisting of the provision of housing in France or set as a percentage of fixed remuneration, a percentage of base remuneration including a variable component, or a percentage of the sole variable component...