Do you need to report foreign income to qualify for a standard tax credit?

A taxpayer of Swiss nationality was subject to a tax audit, following whichadministration issued a tax assessment notice regarding, among other things, property income from a real estate property located in Switzerland.

He challenged this assessment all the way to the Administrative Court of Appeals. In particular, he argued that under the Franco-Swiss tax treaty, he was entitled to a tax credit because the property income had already been taxed in France.

The Administrative Court of Appeal will note, however, that in order to qualify for this tax credit, the income must have been subject to Swiss tax.

In this specific case, it will note that the property income had not been reported in Switzerland and that, furthermore, the taxpayer failed to provide evidence that he had brought his affairs into compliance with the Swissadministration following the tax audit.

The Court will then rule that, even though actual tax liability in Switzerland is not a prerequisite for claiming the tax credit, the taxpayer must provide evidence that he or she has reported the real estate income in that country.

Since the taxpayer has not provided such proof, the Court finds that he is not entitled to the standard tax credit. It therefore upholds the tax assessment.

CAA Bordeaux, April 22, 2026, No. 24BX00234

This legal watch provided by Mispelon Avocat, a law firm specializing in French tax audit and French tax litigation. You can stay legal watch subscribing to the newsletter via this link.