Wednesday, October 03, 2007

Zero income tax! It's that possible in France???

Well, France is well known as one of the countries that impose the highest income tax in the world. Unlike the US system where income taxes are withdrawn from your pay check each month, and at the end of the tax year you could gotten back some tax return and be happy about it, the French government will in contrast tell you how much you owe them after you file for your tax return.

So you can imagine my reaction when I received the income tax form. Zero? We owe the government nothing??? How could this be possible, in France?

At first I thought I had a horrible French just couldn't understand what was written in the form and just forget about it and let hubby deals with it. But hubby said the same thing.

The trick? Get married in the middle of the year! That way you divide your income into two since you are now consist of 2 people, thus too low to "qualify" for tax payment.

This could be one of the reasons hubby wanted to marry me?

4 comments:

  1. so you're just a money saving tool eh? :P

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  2. No but it is a good timing and wise planning. ;)

    If you are rich in France, you are taxed by the government till you become poor :p So if you are just rich but not filthy rich, you have to pay a big chunk of your money to government that you become poor but still rich in poor man's eyes. But if you are poor, you get lots of welfare benefits and no tax.

    So a lot of rich French people left France for elsewhere and some even moved their biz to the tax heaven countries. France should do something to get these people back in their country and invest in France helping its economy instead of letting their citizens help another country's economy.

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  3. Haha, Bee Ean, he saved money by marrying you in the middle of the year!

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  4. We discovered this only when we received the tax return. It was not done on purpose hehe. Next time when someone asks me when they should get married in France, I could tell them the advantage of getting married in the middle of the year.

    cooking ninja,
    I agree with you that rice people are getting out and poor people are coming in to France. The government is trying to do something, but still so many people support the social system so I think it's hard to change it.

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