« Expatriation Bonus » - new assessment method for the 40% threshold

May 26, 2015

In a recent ruling rendered in plenary session, the Conseil d’État (which is the supreme administrative court in France) significantly awarded greater flexibility to the rules on assessment of the partial exemption of personal income tax, applicable to additional compensation related to the work activity carried abroad by an employee, frequently known as « expatriation bonus », set forth under Article 81 A, II of the French tax code (Conseil d’État, 10 April 2015, n° 365851).

Read: « Expatriation Bonus » - new assessment method for the 40% threshold

(Read the French version: « Prime d’expatriation » – nouvelles modalités pour calcul du plafond de 40%)