Decision of the Council of State regarding the tax regime for expatriates

Article 81 A of the General Tax Code provides for a specific tax regime for taxpayers who are seconded abroad by their employer based in France. In particular, they are exempt from tax on income received in connection with such a secondment.

A taxpayer had entered into a service contract with a British company in 2013. The Administrative Court of Appeal had ruled that the provision in the contract stating that he was independent in the performance of his duties precluded the possibility of considering him an employee of the company.

However, the Council of State has just overturned that ruling.

He believes, in fact, that the Court should have examined whether the terms of a three-party agreement entered into between the English company, the taxpayer, and a French company did not, in fact, support the conclusion that the taxpayer had been sent to Korea as an employee of the English company to work on behalf of the French company.

The case is therefore remanded to the Administrative Court of Appeals.

EC, 8th Chamber, June 20, 2025, No. 496597, unpublished

This monitoring service is provided by Mispelon Avocat, a law firm specializing in tax compliance and litigation. You can stay updated by subscribing to the newsletter via this link.