Understanding French Tax: What is the Revenu Fiscal de Référence?

Everyone who is tax resident in France (along with some French second-home owners) will need to file an annual tax return in France, and will consequently receive an ‘avis d’imposition’ or tax notice. These are typically made available in your online tax account from late July through August and will detail your annual revenue, taxable income, and any taxes owed.

But your ‘avis d’imposition’ or ‘avis d’impots’ isn’t simply a tax bill – it’s also one of the most important documents you be issued in France and serves as your official proof of income. You will likely be asked for your avis d’impots during any legal, financial, or tax procedure in France, for example, renting an apartment or applying for a mortgage, applying for or renewing your carte de séjour or residency card, taking out a loan, or applying for benefits.

You should be able to access all of your avis d’impositions via your online tax account, but it’s a good idea to print out a hard copy or save each one as a pdf to your computer for your records.

On the first page of your avis d’imposition, you’ll see the two most important figures:

• The ‘somme qu’il vous reste à payer’ – the amount of tax that you owe.
• The ‘revenu fiscal de référence’ – your household’s ‘reference tax income.’

So, what exactly is the revenu fiscal de référence? It’s a common mistake for expats to assume that this number refers to your household’s net taxable income (and in many cases, you may find that these two numbers are identical) – however, that’s not actually the case. Instead, the revenu fiscal de référence refers to the household’s available resources and includes both the net taxable income and other tax-exempt income and deductible charges.

Your French tax notice serves as your official proof of income and resources in France, and the revenu fiscal de référence, in particular, is taken into account to determine your revenue-based rights.

This is the number used to calculate whether or not your benefit from social assistance (social housing, college scholarships, etc.), whether or not you qualify for tax exemptions or reductions (such as a taxe foncière exemption), government grants (such as ma’prime renov), energy checks, CAF benefits, and many other things.

On the other end of the scale, the revenu fiscal de référence will also determine high-income earners subject to the ‘exceptional contribution on high incomes’.

Whether you are moving to France, own French property, or have business interests, assets, or investments in France—FrenchEntrée is here to help with all your tax questions. Our Essential Reading articles are designed to give you an overview of the basics, from income tax and social charges to wealth tax and property taxes. However, tax laws and rates are always subject to change, and international tax liabilities can be especially complicated, so if in doubt, we always advise discussing your personal situation with one of our recommended financial or tax advisors.

Disclaimer: This guide is provided for general information purposes only and is not intended to be a substitute for professional advice regarding any aspect of your tax planning or tax liabilities in France. FrenchEntrée cannot be held responsible for the consequences of decisions or actions you may choose to take in connection with French tax declarations or tax liabilities.