Residence - The importance of declaring income for taxation purposes
| It is a legal requirement that all residents in France must complete an
Annual tax return. Failure to do so could therefore affect your right to
reside. What is more, sufficiency of resources to avoid being a burden
on the state is a basic requirement for residence, and it is therefore
most important that this can be proved.
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Residence carries with it the legal obligation to complete an annual tax return, no matter where your income is earned, or where the tax is liable to be paid.
What is more, level of income is relevant to sickness insurance matters on several counts:
- For ‘inactifs’ who do not hold an E-form, it determines the amount of payments required to the state for sickness insurance,
- For residents who have access to the CMU, it will determine whether this will be limited to CMU (base) only, or if CMU (complémentaire) will apply,
- For residents who become entitled to social security benefits, the level of income will be crucial in establishing that entitlement, which in turn may establish automatic access to CMU, which may be essential in enabling you to conform to the other basic requirement of benefiting from sickness insurance
- When applying for a resident’s permit, tax returns may be called for to prove that your resources are sufficient at the time of application,
