# Manage a foreign company I own while living in France



## L337 (5 mo ago)

Hi,

I own 100% of the shares in a corporation located in another EU country, where I am the sole manager and employee. None of the company’s income is or will be coming from France.

There is a real company address and office in the other EU country, where some administrative tasks, including all book keeping, are done by a consultant, and half of the board members (1) are also located at the same address.

I will be working from my home in France.

From another of my threads, I learned that I could easily register the company in France to file and pay social fees + salary tax, so I plan to do this.

To start invoicing the corporation as an auto-entrepreneur does not make sense to me, and the VAT threshold is also too low to allow for my salary.

*Questions: *

Paying out salary to myself living in France as a sole owner, could this lead to implications with French authorities with them trying to tax my foreign Corporation etc. in France?
It would be interesting to hear about real-world experiences of the setup working well or not. I am planning to sell the company’s assets and liquidate within two years, so the setup will not last long.


If I resign completely as managing director/ employee, only being the sole shareholder taking out dividends, could this be a solution?
Thank you in advance for your guidance.


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## Moulard (Feb 3, 2017)

I will leave Bev to reply to the France and perhaps EU specific parts of this...

But while you wait, here are some general principles.

Income tax is typically paid in the country where the income is sourced.

Wages are normally sourced where the work is performed, so any wages would be sourced in France and subject to French income tax
Dividends are normally sourced with the company is registered and thus would be considered sourced in the EU country where the company is registered.. 
But if you are a tax resident of France then you would still have to declare the dividends as income in both countries, and rely on the tax treaty or EU regulations to address the double taxation that results.

The other factor to consider, is if you are the sole owner of the company and you are operating it from France, the company is likely to have permanent establishment in France. I have no idea what that means in the context of the EU but could require you to set up a business in France (possibly owned by the other corporation) to comply with local tax laws.


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## L337 (5 mo ago)

Moulard said:


> Wages are normally sourced where the work is performed, so any wages would be sourced in France and subject to French income tax
> Dividends are normally sourced with the company is registered and thus would be considered sourced in the EU country where the company is registered..
> But if you are a tax resident of France then you would still have to declare the dividends as income in both countries, and rely on the tax treaty or EU regulations to address the double taxation that results.


Thank you for your input. I don't know if it was clear in my first post, but I will be fully registered in the French system privately, so I will personally be fully taxed in France for income and dividends, as you confirm. 

The company will withhold and pay the company's social security contribution and taxation on my salary directly (monthly) to the French side after being registered in France. 

The main question I would like to get answered with certainty is if France could go after and try to tax my company (Which, of course, is fully taxed in the other EU country). In my situation, it is not fully clear to me; maybe I am just thinking too much about the details. 

To create another company in France would honestly be too much work and "not worth it".


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## Moulard (Feb 3, 2017)

There are probably a bunch of EU specific things that I know nothing about, so once again.. just broad principles here.

The income of a business is usually sourced where the nexus of economic benefit is located. So if the other company has no French clients, its income is not likely to be taxable by France.

If the company does have French clients, then that part of its income derived in France would likely be taxable by French authorities. The company would then be able to claim a tax credit, offset, deduction or other reduction for French taxes paid while it files its corporate tax return in the country it is registered per the terms of the tax treaty between France and the EU country it is registered in and its domestic tax laws.


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## L337 (5 mo ago)

I have now double-checked the setup with a tax expert in the foreign EU country and France, and they both agree that registering the foreign EU company to pay out my salary directly to me as a tax resident in France is the right way. The company will also be registered to withhold and pay social fees to the French system. 

For others interested in the steps to get everything set up, here is a list I created for myself.


Get personal tax number TIN - Book meeting or send via post to the local Impots
https://www.impots.gouv.fr/contacts
Form: 2043
https://www.impots.gouv.fr/sites/default/files/formulaires/2043-sd/2021/2043-sd_3593.pdf


Sign up to get SIRET with EE0 form online - URSSAF Foreign companies
I am recruiting staff in France


Create and access personal login for impots.gouv.fr
Your personal account


Register to get social security number
Registering for social security in France - Welcome to France


Sign up for Cart Vitale
Compte ameli - mon espace personnel
Form: 15763
https://www.ameli.fr/sites/default/files/formulaires/168/s1106_puma_demande_od_remp.pdf


Creating login with SIRET for Company impots.gouv.fr
impots.gouv.fr - Abonnement à votre espace


Sign up for withholding autopayment and reporting - Net Entreprises FR
https://www.net-entreprises.fr/


Submit DPAE via net-enterprise.fr
https://www.net-entreprises.fr/declaration/dpae

Flow chart showing how to setup and pay withholding tax in France
https://www.impots.gouv.fr/sites/de...tional/EV_pro/PAS/schema_my_formalitiesv3.pdf


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