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Why this weekend might be a good time to fill up your car in France

Ahead of the busiest weekend of the year on the French roads, some supermarket chains are offering discounts on fuel.

Published: 26 July 2022 16:45 CEST
Why this weekend might be a good time to fill up your car in France
A client fills her car with gas at a petrol station in Ciboure, southwestern France (Photo by GAIZKA IROZ / AFP)

The chassé-croisé is upon us. It is the weekend when vacationers heading off to enjoy their holidays in August share the roads with those coming home from their July trips. This year, like years previous, there will be heavy traffic on French motorways, particularly on Saturday.

Luckily, there are a few options for drivers to save on fuel amid the long traffic jams – or simply take the chance to fill up locally if you’re not planning on travelling.

Fuel prices remain very high and France – and would be even higher without the government’s 18c per litre discount – on Tuesday average prices stood at €1.93 a litre for diesel, €1.91 for unleaded (SP95) and €1.85 for E10.

The grocery store chain E. Leclerc will be foregoing some profits this weekend by offering its fuel “at cost.” The discount will be available for customers at all Leclerc filling stations – of which there are about 600 –  from Thursday July 28th until Saturday July 30th. Keep in mind the discount will no longer be in effect on Sunday, July 31st.

READ MORE: French Expression of the Day: Chassé-croisé

The offer is intended to help consumers counter rising cost of living and inflation, particularly on one of the biggest driving weekends of the year. 

In terms of savings, motorists should not get too excited, however. A litre of fuel might be around €0.02 to €0.10 cheaper at participating stations.

You can find a station near you HERE. 

READ MORE: MAP: Where to find the cheapest fuel in France

The discount plan for consumers comes as France’s parliament debates the current fuel rebate, which could be increased from €0.18 to €0.30 per litre of gasoline from September 1st.

Head of E. Leclerc, Michel-Edouard Leclerc, has also announced that this may be the final ‘at-cost’ operation, arguing that such operations will no longer be possible when the new climate law takes effect on August 22nd. The law will regulate advertising related to the environment, including a ban on the advertising of fossil fuels. 

Leclerc is not the only supermarket chain to offer fuel discounts. The Casino group will continue offering its discount until the end of August. As it stands, consumers can benefit from from a voucher card after spending €120 at the Casino store. The voucher can be picked up at the reception desk of any participating Casino store, and allows customers to get one litre of fuel at the price of €0.85. 

The TotalEnergies group has also announced they will apply a fuel discount of €0.20 starting in September.

If you are looking to save on fuel, you can also use this map to avoid soaring prices.

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PENSIONS

Is my US pension taxed in France?

Deciphering whether or not you will owe French tax on your US-based pension can be confusing. To give you an answer, The Local spoke with experts and consulted the US-France tax treaty to give an overview of how you might be affected.

Published: 13 June 2024 13:43 CEST
Is my US pension taxed in France?

When it comes to taxation on foreign pensions, it all depends on the tax treaty between France and the country that is paying your pension, which is why the situation is significantly different depending on where that pension is paid.

Luckily for American retirees living in France, they benefit from a generous US-France tax treaty to avoid double taxation on all pension income, including private pensions. 

To better explain the situation, The Local spoke with tax expert, Jonathan Hadida from HadTax.

“The reason we call France the bees’ knees for American retirees is because US-sourced pension income is only taxed in America. That means when you take money out of your 401(K) or IRA, those are taxable at your tax bracket in the United States. 

“You have to report it on the US-side and pay US taxes at your marginal rate” Hadida explained.

“On the French side, US-sourced pension income is reportable in France for rate-purposes but benefits from a deemed credit.

“This means you put it on your French tax form, and you calculate the tax and you get a deemed credit equal to that. Ultimately, you wind up paying no French taxes on your US-sourced pension thanks to Article 18 of the US-France tax treaty”.

READ MORE: Ask the expert: What Americans in France need to know about 401(k) and other pensions

You should also consider if you have a pension from another country besides the US, as different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, Canadian, and Australian pensions, and here is an overview of the system.

How do I report US-sourced pension income to French authorities?

Although you won’t end up paying French taxes on your US pension, you do need to tell the French taxman about it if you are a tax resident here.

The annual French income tax declaration requires you to declare all global income, including pensions.

Keep in mind that even though you are not subject to French taxes on your US pension, it does count towards your household income which can push you into a higher tax bracket, and this could affect your ability to qualify for certain means-tested grants and government aid in France.

International Financial Advisor, Bryan Dunhill with Dunhill Financial explained: “You fill it in within box 1AL or 1BL on form 20-42 on the French tax return, then you claim it in on the 8TK of the 20-47 to say it is US-based pension income, and then you will get a tax credit from the French.

“It goes in and it goes out on the French side. Being a US retiree in France is fantastic”, Dunhill said.

For both 401(K)s and IRAs, Americans in France should still keep in mind that early withdrawal (prior to the age of 59 and a half) can still lead to a 10 percent early distribution penalty (in the US). There are certain exemptions, such as first time homebuyers and higher education, but you should meet with a tax adviser to determine if you qualify.

READ MORE: EXPLAINED: The rules on tax residency in France

What about social charges?

In addition to taxes (impôts), France also requires people to pay social charges (prélèvements sociaux) on income. However, only specific types of income can be considered for social charges, such as the CSM charge (PUMa) for healthcare. 

The general rule is that pensioners and their spouses do not have to pay the CSM charge, but France specifically exempts people who have a pension from France, the EU, the EEA and the UK (people with S1 forms).

There is some debate over whether common types of American private pensions such as a 401(K) or IRA are treated as a pension (and therefore exempt from CSM) or as investment income (which can attract CSM charges). 

Hadida told The Local: “Under the principle of equality amongst taxpayers, URSAAF has treated most US pensions/IRA distributions/401(k) distributions akin to a French/Swiss/European pension and have therefore exempted Americans with pension income.”

“I have called URSSAF, and I was told by the representative that they should be paying for PUMa. But in practice, I have not seen many American pensioners charged for it.

READ MORE: Cotisations: Why you might get an unexpected French health bill

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