Everything you need to know about Form 2047
April is fast approaching, and with it comes the time to file last year’s tax return. Are you familiar with Form 2047? This French tax return applies to all residents of France who have received income from abroad.
Are you an expat and want to know how to file your taxes in 2023? How do you complete your 2023 tax return if you’re a cross-border worker? b-sharpe tells you everything you need to know about form 2047!
A closer look at Form 2047 🔎
Form 2047 – what on earth is it? Put simply, it is an annex that must be submitted with your tax return. It covers all income derived from activities carried out abroad. This may include salaries or pensions from work carried out abroad, income from property, or even profits from companies based outside France, such as dividends… If you work in France for an internationally based company, this also applies to you. When you file your 2023 tax return, you must declare your foreign income. To do so, you must complete form 2047.
How do I download Form 2047?
Accessing the famous Form 2047 is very straightforward. Where can you find it? It is available on the Ministry of Finance’s official tax website, impots.gouv. You can download Form 2047 as well as the Form 2047 annex specific to Swiss salaries. If you live in Switzerland, the annex must also be submitted.
Declaring amounts in foreign currency
Have you received income from outside the eurozone? Please note that you must declare this income based on its equivalent value in euros, calculated using the exchange rate in Paris on the day the payment was received. To help you with this, b-sharpe offers a handy currency converter.
Who should complete Form 2047? 👩🏻💻
Who needs to complete Form 2047? Any person who is a French tax resident living in France and who has received income from outside mainland France and the French overseas departments must complete Form 2047 as an annex to their tax return.
The case of cross-border and frontier workers
As for cross-border workers, how should they go about filing their 2023 tax return? It is important to note that the Ministry of Finance has introduced special provisions for people living near the border and working abroad. First of all, here is a brief reminder regarding cross-border worker status:
- When a worker travels to another country to work, both countries in question – the country of residence and the country of employment – may claim the right to tax the income earned, in accordance with their respective legislation. At first glance, there is a risk of double taxation. Consequently, a scheme for cross-border workers has been introduced to ensure that wages are taxable only in the country where they reside. Hence the need for a specific declaration using form 2047!
- There is also a specific cross-border worker status. It allows those covered by it to enjoy the same social and tax benefits as nationals of the country where they are employed, as well as access to healthcare. The countries covered by this scheme are Germany, Switzerland (with the exception of the canton of Geneva), Italy and Spain. Therefore, if cross-border worker status is recognised, income is taxed in France. Here too, it is therefore necessary to complete form 2047.
Some practical information ℹ️
What is the deadline for filing your tax return? The 2023 tax return portal will open on 13 April 2023. It will close on 25 May for residents of departments numbered 01 to 19, on 1 June for departments 20 to 54, and on 8 June for all departments numbered 55 and above. Returns must be filed online via the government platform impots.gouv.
Filling in Form 2047
All the practical information you need to help you complete Form 2047 is available on the Ministry of Finance’s official website. What documents do you need to prepare to ensure you complete your 2023 tax return and Form 2047 as accurately as possible? Of course, the documents required may vary depending on the country in which you work, as employment regulations differ from place to place. Here is a list of documents to help you:
- the payslip or salary statement issued by your foreign employer for each pay period
- your foreign bank statements
- a statement of interest earned on your bank investments (savings, life insurance, etc.) held in foreign accounts
- for property income, a breakdown of the income and expenses relating to each let property.
What deductions can you claim on your 2023 tax return using Form 2027?
Did you know? Overtime for cross-border workers is tax-exempt! Since 1 January 2019, you have been able to benefit from a tax exemption on your overtime, up to an annual limit of €5,000 per year per employee. Please note, however, that for Switzerland, this applies only to the following cantons: Vaud, Valais, Jura, Neuchâtel, Bern, Solothurn, Basel-Stadt and Basel-Landschaft (i.e. the cantons covered by the agreement of 11 April 1983).
How do you go about it? You will need to download another form, Form 2041-AE, entitled “Employer’s Certificate – Overtime exempt from tax for cross-border workers who are normally liable for tax in France”. Have your employer fill it in, stating the total number of hours worked and the number of overtime hours worked. You can then complete it with your personal details and attach it to your tax return.
Every year, filing your tax return turns out to be a tedious administrative task that many put off until tomorrow! This is particularly true for cross-border workers, who have to provide several additional forms, such as the well-known Form 2047, relating to income earned abroad. However, by following the right advice and staying well-informed, it is possible to make the process straightforward. If you need to declare your income and convert amounts received in foreign currencies, b-sharpe is here to assist you with all your currency exchange needs.
