Tax residence – Centre of economic interests

10 June 2020

In a decision #18VE01128, dated December 3, 2019, the Administrative Court of Appeal of Versailles has recalled the conditions under which it assesses the tax residence of a taxpayer whose centre of economic interests is located in France.

A taxpayer, retired from the Council of Europe, living abroad (United States), whose income is mainly constituted by the pensions paid by the Council of Europe, a body established in France, must be considered as having the centre of his economic interests in France pursuant to Article 4B of the French Tax Code, without taking into account the fact that the income received by the person concerned was tax-exempt and that the pensions may be paid into a bank account opened abroad.

In this case, the taxpayer was not able to provide proof of residence in the United States, not more than the payment of taxes in the United States, thus precluding him from claiming the application of the Tax Treaty.