If you live in France but work across the border in Switzerland then you are, as you are probably aware, know as a travailleur frontalier, and a special set of tax rules apply.
Depending on in which canton you work, Swiss income tax may or may not be withheld from your salary and this will affect how you need to declare your income in France.
1. Salaries not subject to income tax in Switzerland
If you work in one of the following cantons, then no Swiss income tax should be withheld from your salary and you should declare your salary for normal taxation in France. If Swiss Social Security is deducted, then it is the net amount received (net imposable) that is taxable in France.
VAUD, VALAIS, BÂLE-VILLE, BÂLE-CAMPAGNE, BERNE, JURA, NEUCHATEL, SOLEURE
You will need to complete Declarations 2047 (Suisse), 2047 and 2042.
2. Salaries subject to income tax in Switzerland
If you are employed in any other Canton, for instance Geneva, then your employer has the right to withhold Swiss income tax from your salary.
In this case, you have the right to claim a credit in your French tax return. This credit is equal to the French tax payable on the income. What this means is that there will be no further tax payable in France.
If Swiss Social Security is deducted, then it is the net amount received (net imposable) that is taxable in France.
The forms to complete are 2047 (Suisse), 2047 and 2042.
For further information and assistance, please visit our website at www.franceaccountants.com