2023-04-20 13:08:24
It is a statement within the statement. Since 2019, it is imperative to report accounts held abroad when declaring taxes. We help you see things more clearly.
What must be declared?
You must declare to the tax authorities the accounts opened, held, used or closed abroad during the year 2022. This also applies to life insurance contracts and digital asset accounts.
This is the case for account holders at N 26, domiciled in Germany, Wise in Belgium, etc. French Revolut customers can benefit from a French International Bank Account Number (IBAN) since May 2022 instead of a Lithuanian IBAN. . If you were concerned last year, you still have to declare the closure of the Lithuanian account. “Customers who switched to French IBAN in 2022, and new customers who will have direct access to it will not need to declare the account in 2024,” says Revolut. On the other hand, those who switched from the Lithuanian IBAN to the French IBAN in 2023 will still have to declare it in 2024 but no longer in 2025.
On the other hand, although PayPal is based in Luxembourg, French users are not obliged to report this account to the tax authorities on three conditions: if it is backed by another account opened in France, if it has for the purpose of making online payments for purchases or receipts for the sale of goods and if this is done for an amount of less than 10,000 euros.
How to declare?
If you are filing your tax return online, you must tick the 8UU box and then complete form n° 3916/3916 bis (bank accounts, digital asset accounts, and life insurance contracts). In the case of a paper declaration, you can download and print this form, as well as its notice on the tax website. “A single declaration must be made for the same account or contract opened by spouses, whether they are both holders or whether one or the other has a power of attorney on the account of the main holder”, explains the DGFiP.
On this declaration, it is necessary to mention the nature of the account, the contract or the investment, its number, the date of opening, the contact details of the managing body, etc.
What is the risk in the event of non-declaration?
If you do not comply with this obligation, you expose yourself to a fine of 1,500 euros per undeclared bank account. The sum is increased to 10,000 euros per unit if the account is located in a State that has not concluded an agreement with France to combat tax fraud and tax evasion.
Ditto for a life insurance contract. In the case of a digital asset account, the offender is liable to a fine of 750 euros per undeclared account or 125 euros per omission or inaccuracy, up to a limit of 10,000 euros per declaration. The fine is doubled if the market value exceeds 50,000 euros.
And that’s not all. A reminder of income tax will take place over 10 years if the bank account is productive of interest, dividends or capital gains. The period is reduced to 3 years for accounts with assets of less than 50,000 euros. With an increase of up to 80%. An omission of declaration which can therefore be very expensive.
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