FAQ - USA - Public Remunerations
1 - I am employed and paid by the French Government and working in the United States. Where do I pay income taxes?
Article 19 of the French-US income tax treaty provides that compensations paid by a contracting State to an individual, for services rendered in this State, be taxable only in this State, unless the services are rendered in the other State by a person who is a resident of and a national of this other State and not at the same time a national of the first-mentioned State.
In addition, article 29-2 provides that the United States may, in some cases, tax their residents as if the treaty did not exist. In addition, since January 1st 2010, paragraph 9 of Article 29 expressly provides that public wages paid for services rendered to France shall be taxable in the United States if the services are rendered in the U.S. and if the individual is a resident of the United States and a national or an alien holding a Green Card.
Pursuant to these provisions :
- An individual receiving French public remuneration for services rendered in the United States is not taxable in France if this individual holds a green card or has American citizenship.
- A French civil servant who is not a US citizen or does not have a green card, does not pay US federal income tax on the public remuneration he receives from France. His/her public remuneration is taxable in France.
In order to lighten the tax burden, France admits that the basis of income tax for state employees working outside of France and recruited locally must equal the compensation they would have received had they had a similar activity in France (Rép. Ministérielle du 9/23/93). For the purposes of this provision, the department head (or, in the case of consulates general, the post chief) must submit a document stating the total amount of compensation paid and, to allow the implementation of the departmental response above, the amount of the tax base in France. This document is proof of taxable income, which must be attached to the French tax return (2042).
It goes without saying that the provisions of the response Maman dated September 23rd 1993 are applicable only in respect of compensation taxed in France. People paying taxes in the United States must of course report the total amount of compensation received before any reduction. It is also reminded to officials that are taxable in the United States, that the residence allowance and family benefits received are taxable under U.S. law. These agents must also report their income coming from French sources (property income / interest / dividends ....).
Where to file your return in France:
Service des impôts des particuliers des non-résidents
10 rue du Centre,
93465 NOISY LE GRAND
2 – I am locally recruted and a US citizen (or green card holder) and I receive public remuneration from France. Where am I taxed?
Since January 1st 2010, an individual receiving French public remuneration for services rendered in the United States is not taxable in France if this individual holds a green card or has American citizenship