[ Offshore Tax ] Understanding the MTG Tax: France’s Tax on Gratuitous Transfers.
France imposes a tax on gratuitous transfers, known as the MTG tax, which applies to gifts or inheritances. The recipient is generally responsible for paying this tax and filing a return.
The tax rates are determined based on the relationship between the transferor and the transferee. Transfers to direct descendants, spouses, and domestic partners are taxed at lower rates, with graduated rates ranging from 5 percent to 45 percent, depending on the net taxable value. In contrast, transfers to brothers and sisters are taxed at 35 percent or 45 percent, to other family members up to the fourth degree of relationship at 55 percent, and to more remote family members and non-relatives at 60 percent.
All worldwide assets are generally fully subject to the French MTG tax if either the donor or decedent has his fiscal domicile in France, or the inheritor, donee, or legatee has his fiscal domicile in France and has had his fiscal domicile in France for at least six of the 10 years preceding the year of the transfer. However, under Article 8 of the U.S.-France Succession and Gift Tax Treaty, if the donor, deceased, or settlor is a resident of the United States, the French donee, heir, or trust beneficiary isn’t taxed except on French situs real estate, tangibles, and business property.
The MTG tax applies in the normal way if the transfer from the trust is considered to be a transfer by gift or succession under French law. Assets of a trust are subject to the MTG tax, without regard to whether a gift has technically been completed under the laws of a common law jurisdiction. This applies in two scenarios:
On transmission or at the death of the settlor or deemed settlor-beneficiary.
If the beneficiary of a trust, as defined in the Code général des impôts (CGI), has his fiscal domicile in France (except as provided otherwise by a tax treaty).
TIMESTAMPS:
0:00 INTRO
0:15 France’s Tax on Gratuitous Transfers.
1:00 Ways to pay less MTG Tax
1:49 outro
--------------------------------
OUR CHANNEL OFFERS:
- Updated daily, we help 6, 7, and 8-figure International Entrepreneurs, Expats, Digital Nomads, and Investors legally minimize their global tax burden and protect their wealth.
- Join Amazon's best-selling author, Derren Joseph, in exploring the offshore financial world.
SUBSCRIBE TO OUR CHANNEL FOR MORE FREE INFORMATION:
https://www.youtube.com/c/TaxesforInternationalEntrepreneursandExpats?sub_confirmation=1
--------------------------------------------------
WATCH OTHER VIDEOS:
https://youtu.be/aec2se0x_cs
https://youtu.be/yKIQ78azSA8
https://youtu.be/pBvgddn4VQ4
--------------------------------------------------
Here are 4 ways we can help you:
SIGN UP for free webinars on US Expat Taxes and International Entrepreneur Taxes: https://htj.tax/events/
STREAM premium educational videos: https://htj.tax/youtube/
CONTACT us for tax optimization consults over Zoom: https://www.htj.tax/contact/
High Net Worth? We can QUOTE for doing your "US-International" tax returns.
FOR MORE DETAILS, CONNECT WITH US:
✉ Contact us at help@advancedamericantax.com
--------------------------------------------------
FOLLOW US ON:.
🌍 Check our website: https://htj.tax/
🎙️ Listen to our podcast: https://podcast.htj.tax/
📸 Add us on Instagram: https://www.instagram.com/htj.tax/
🐦 Add us on Twitter: https://twitter.com/derren43/
📕 Add us on Facebook: https://www.facebook.com/htj.tax
💼 Contact Derren on LinkedIn: https://www.linkedin.com/in/derren-joseph-ea-0345332
#OffshoreTax #MTGTax #FranceTax #GratuitousTransfers #Taxation #InheritanceTax #EstatePlanning #TaxTreaty #GlobalTaxation #WealthManagement #InternationalTax #TrustTaxation #TaxCompliance #FiscalDomicile #TaxLaw
0