Income tax exemption for pay supplements linked to relocation to France (impatriates)

Article 23 of the 2003 Amending Finance Act creates Article 81 B of the General Tax Code. Employees and certain executives sent by a company established abroad to take up a job in France for a limited period are not taxed on pay items directly linked to that situation, until 31 December of the fifth year following their start, provided they were not tax resident in France in the previous ten years. The taxable portion cannot be lower than pay for similar positions in France. Social security and pension contributions paid to foreign schemes become deductible within the same time limits. The regime applies to positions taken up from 1 January 2004.