Tax policy directorate – Bureau a

particular to the ownership of their capital by individuals. 

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ARRANGEMENTS APPLYING TO THE FIRST SALE FOR VALUABLE CONSIDERATION OF A TEMPORARY USUFRUCT 
MADE BY A TAXPAYER LIABLE TO INCOME TAX
Revenue from the first sale for valuable consideration of a same temporary usufruct is, as a departure 
from the provisions for taxation of capital gains, liable 
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to income tax in the category to which the profit 
or income, received or likely to be received from the good or right to which the sold temporary usufruct 
relates, belongs on the sale date.
B. PERSONS NOT DOMICILED IN FRANCE 
In principle, persons not domiciled in France must file an annual return reporting all their income if they 
have income from French sources. The rules for income received by persons domiciled in France are 
the same in principle for income received by persons not domiciled in France. 
However, specific arrangements exist. 
Withholding tax is applied to some income from French sources received by persons not domiciled in 
France. In some cases the withholding may discharge the income tax liability partly or in full, meaning 
that progressive rates of tax are not applied to the income in question. 
The rate of levies and withholding taxes on income paid or certain capital gains made in a non-
cooperative country or territory or paid by persons (individuals or legal entities) whose residence for tax 
purposes or registered office is located in such a country, are increased by 75% (50% prior to 2013). 
Some types of income are expressly exempted when received by non-residents. 
1 – Income subject to withholding tax 
W
ITHHOLDING TAX RELATING TO NON
-
COMMERCIAL OR SIMILAR INCOME 
(A
RTICLE 
182 B CGI) 
Profits from non-commercial activities carried on in France by persons not domiciled there are taxable 
under the same rules as for profits of the same kind received by persons domiciled in France. 
However, withholding tax at 33
⅓
% is levied on non-commercial or similar income paid by a debtor 
carrying on a business activity in France to individuals (or companies) that do not have a permanent 
business establishment in France. 
Withholding tax at the same rate is also generally levied on remuneration paid for services of any kind 
actually provided or used in France. However, the rate is 15% for amounts, including salaries, paid for 
sporting performances provided or used in France. 
The rate of the withholding tax is increased to 75% when the amounts, other than salaries, are paid to 
individuals domiciled or based in a non-cooperative country or territory.
The amount of the withholding is set off against the income tax (or corporation tax) payable by the 
individual (or company) on income from French sources. The withholding is not refundable. 
WITHHOLDING TAX RELATING TO INCOME FROM ARTISTIC PERFORMANCES 
(A
RTICLE 
182 A 
BIS 
CGI) 
Amounts paid for artistic performances given or used in France by a debtor carrying on a business 
activity in France to persons that do not have a permanent business establishment there are subject to 
withholding tax at 15%.
This rate is increased to 75% when the amounts paid for artistic performances, other than salaries, are 
for the benefit of individuals domiciled or based in a non-cooperative country or territory.
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In accordance with the provisions of Article 13(5) CGI, in its wording originating from Article 15 of the third 
Supplementary Budget Act for 2012 (No. 2012-1510 of 29 December 2012). 

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For compensation paid in 2016, this withholding discharges income tax for the portion up to €41,909.
WITHHOLDING TAX RELATING TO WAGES
, 
SALARIES
, 
PENSIONS AND ANNUITIES 
(
ARTICLE 
182 
A CGI
) 
Wages, salaries, pensions and annuities paid to individuals not domiciled in France are liable to 
withholding tax calculated on a three band scale, the limits of which vary in the same proportion as the 
closest limit of the tax scale: 
• 
No withholding tax is levied if the annual amount is less than €14,446 
• 
Withholding tax is payable at 12% on income between €14,446 and €41,909 
• 
The rate is 20% for income in excess of €41,909 
The withholding can normally be set off against the final amount of tax payable. 
That being said, the withholding on wages, salaries, pensions and annuities discharges income tax for 
the taxable portion, taxed at 12%, which does not exceed €41,909 for 2016. This arrangement is 
reserved for French nationals who do not have their tax domicile in France and for nationals of 
countries that have concluded a treaty with France containing a non-discrimination clause. The portion 
is not included in the income tax calculation and the corresponding withholding cannot be set off 
against it. 
In contrast, the taxable portion of the income in question which exceeds the above-mentioned limit is 
included in the income tax calculation and the corresponding part of the withholding can be set off 
against the amount of tax. 
However, these provisions do not mean that taxpayers must declare only the excess portion. They 
must report all wages, salaries, pensions and annuities from French sources available to them during 
the year of taxation together with the total amount of withholding tax levied on such income on their 
annual tax return.