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Tax Implications of Remittances for Overseas Bangladeshis in France: What You Need to Know

16 Feb 2024


Knowing the tax laws regarding a money transfer from France to Bangladesh is as important as updating yourself with any other country's law.  Remittance laws can be different for every country. They may vary for inflow and outflow, too. So, it is quite complex to update yourself with the tax specifications of a country.                                   

In 2022, France ranked 1st out of 38 OECD countries regarding the tax-to-GDP ratio. France had a tax-to-GDP ratio of 46.1% compared with the OECD average of 34.0%.

The aforementioned statistics show that France is one of the highest tax-collecting countries. This article will help you understand tax implications and other specifications as a Bangladeshi expat living in France.          

Tax Implication for Bangladeshi Citizens Residing in France

There might be certain tax implications for Bangladeshi citizens residing in France who do money transfers regularly. The following section has detailed some of the factors that need to be considered regarding such implications.   

Double Taxation Avoidance Agreement (DTAA)

Bangladesh and France signed the Double Taxation Avoidance Agreement (DTAA) in 1989. This agreement prevents double taxation for individuals earning income in both countries. This agreement can significantly influence how you are taxed when you send money to Bangladesh from France. It's advisable to consult tax experts or financial advisors who are well-informed in international tax laws to understand the specifics of these treaties.       

Taxation on Remittances  

Generally, sending money from France to Bangladesh does not attract taxes or levies in France. However, checking both French and Bangladeshi tax laws regarding remittances is crucial to ensure compliance.   

Exchange Controls

Bangladesh might have regulations or restrictions on the inflow of foreign currency. It's advisable to stay informed about any restrictions imposed by the Bangladesh Bank or government concerning the receipt of remittances.     

French Tax Laws

Unlike many countries, France has its own tax regulations that dictate income tax, including any income earned within the country. As an overseas resident in France, you might have to follow French tax obligations for any income earned or brought into the country. The taxation makes sure that whatever is earned in France stays in France.   

Reporting Requirements    

Even if remittances are not taxable, both countries might have reporting requirements. This could involve providing information about the source and destination of funds transferred between France and Bangladesh. It can also include information about the sum of money you are transferring between countries.    

Bangladeshi Tax Laws

Bangladesh may have its own rules regarding taxation on remittances. Bangladesh does not impose taxes on remittances received from abroad.  So you can send money online to Bangladesh from France without any taxes. However, it's essential to stay updated on any changes in tax laws that might affect remittances.   

Seek Professional Advice  

Given the complexity of international tax laws and the potential implications, seeking advice from tax consultants or financial advisors would be better. These experts must have specialized in cross-border transactions and be well-informed about taxation. They can provide personalized guidance based on your situation and ensure compliance with relevant tax laws.    

Always keep yourself updated with the latest tax regulations and seek professional advice to ensure compliance with both French and Bangladeshi tax laws regarding remittances.

Navigating Financial Landscapes With Online Money Transfers

Living in a foreign country can be challenging sometimes, especially when it comes to finding the best way to make an online money transfer to Bangladesh from France. It is very hard to ensure maximum compliance with the relevant tax laws. However, with the help of the above-mentioned tips, you can easily find your way to levy the tax implications.

Use ACE Money Transfer for Remittance Services

The impacts of inflation crises on the remittance industry are hazardous and quite visible to the world. If you are worried about the tax implications and other formalities regarding money transfers to Bangladesh, you don't need to worry because ACE Money Transfer is at your service. It is one of the fastest-growing and FDA-approved online money transfer companies which is providing its services worldwide.   You can send money to any corner of the world in seconds without any hazards. It ensures 100% security of funds and offers transparent money transfers.

FAQs

Do I have to pay tax on money transferred from overseas to France?

If you receive money from abroad, taxes may also need to be paid. All transfers should be reported to 'le fisc' or the relevant tax authorities.     

What is the remittance tax in France?

After-tax profits of a French branch of a foreign company are deemed to be distributed to non-residents and are subject to a 25% branch tax. However, since 2020, the branch can prove that the profits made in France stay in France and are not invested elsewhere.  

How are expats taxed in France?  

As a resident, France expects you to declare all your worldwide income for tax purposes. In contrast, as a non-resident, you only need to declare your income in France. Residents can benefit from certain tax allowances, while non-residents might have different tax rates for their French income.     

How long can you stay in France without paying taxes?

You can stay in France for 183 days without paying taxes. Whatever your nationality, you will be considered a tax resident of France (subject to global tax regulations) if you meet one of the following criteria: you have your home or main place of residence in France. Generally, you are a resident of France if you spend more than 183 days a year in France.  

What happens if you don't declare tax in France?

If you do not declare when required or miss the deadline, your risk Tax amount increases as follows: 

  • 10% if you have not received a formal mise en demeure warning letter
  • 20% if you have received a formal notice and you send in your return within 30 days of receiving this warning.

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