ExemptionEndedIncome taxNational

Inbound expatriate regime: prior non-residence cut to five years and exemption of pay linked to work abroad

Article 54 of the 2005 Amending Finance Act amends Article 81 B of the General Tax Code on employees and executives recruited from abroad to work in France. The required period of non-residence in France before taking up the post falls from ten to five years, for posts taken up from 1 January 2005. A new section III exempts, on option, the share of pay relating to work carried out abroad, up to 20% of taxable pay, for income received from 1 January 2005.

Measure originators

InitiatorGVT

Thierry Breton

Gouvernement

Impact on public finances

No official estimate found for this measure.

Effective date

1 January 2005

Measure impact

Executives coming from abroad to work in France qualify more easily for the inbound expatriate regime and may be exempt on the share of their salary linked to assignments abroad, up to 20% of their pay.

Official references

Law number: Loi n° 2005-1720 du 30/12/2005 (LFR 2005), art. 54

Official Journal: JORF n° 304 du 31 décembre 2005

View on Légifrance

Sources

Loi n° 2005-1720 du 30 décembre 2005 de finances rectificative pour 2005Official

31 December 2005

Sénat, dossier législatif (Loi n° 2005-1720 du 30/12/2005 (LFR 2005))Parliamentary

22 December 2005

Sénat, rapport n° 129 (2005-2006), examen de l'article 29 du projetParliamentary

14 December 2005

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%

5 / 5 steps

Completed

30 December 2005

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2005-1720, publiée au JORF n° 304 du 31 décembre 2005.

Source

Completed

29 December 2005

Possible referral to Constitutional Council

Constitutional review

Décision de conformité / censure partielle

Décision du Conseil constitutionnel n° 2005-531 DC du 29 décembre 2005 (partiellement conforme).

Source

Completed

22 December 2005

National Assembly has the final say

Parliamentary process

Si échec CMP

Vote result

Adopted

Adoption définitive par l'Assemblée nationale (TA n° 528) et le Sénat (TA n° 45) le 22 décembre 2005.

Source

Completed

23 November 2005

Transmission to National Assembly

Parliamentary process

Actors

Thierry Breton

Dépôt du projet de loi de finances rectificative pour 2005 à l'Assemblée nationale (n° 2700) par Thierry Breton, ministre de l'économie, des finances et de l'industrie.

Source

Completed

1 January 2005

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Applicable aux prises de fonctions et aux revenus perçus à compter du 1er janvier 2005 (effet rétroactif).

Source