FAQ - Canada - Pensions
1 - I am in Canada and receive a pension taxable in France. When do I have to pay the French income tax ?
Pensions paid by a French pension plan to a Canadian resident are taxable in France. The tax is withheld at the time of the payment of the pension. However in some cases (multiple pensions or pension exceeding 14,245 Euros), you must file an income tax return 2042 and the regularization of the payments is made by the Service des Impôts des Particuliers Non-Résidents (Tax center for non-residents).
The tax return must include the detail of the taxable pensions and of the withholding taxes.
2 – I am retired, a Canadian resident and I receive a pension from France. Where will it be taxed ?
Article XVIII of the French-Canadian tax treaty states that, in principle, French pensions are only taxable in France.
The pensions in question are those of the basic system of social security (the general system of social security, special regimes of social security and social insurance regime for farmers) and those of the mandatory additional plans (AGIRC, ARRCO, the regime of self-employed).
When they are taxable in France, pensions paid to a Canadian resident are subject to a withholding tax. The paying agent (“Caisse de retraite”) applies the withholding tax on the net taxable amount (so after the standard deduction of 10 %).
A document on the taxation in France of French source pensions received by residents of Canada created by the French tax attaché’s office is available here.