The number of contracts registered civil partnership is on the rise because of the benefits conferred by a tax system similar to that of marriage. Being a little formula and governed by a binding legal framework, the PACS is distinguished from concubinage. The PACS and enjoy various tax benefits, with the ability to break the joint assessment by a request made by one partner.

The PACS allows partners to show solidarity and pay less tax. The PACS must perform certain administrative procedures in order to benefit from these tax cuts. They must file with the tax authorities, the tax office of their place of common residence, three tax returns. A personal statement made by the partners mention the income received between January 1 and the date of conclusion of the pact. The names of dependents must be listed on the form duly signed by the partner filer. The joint statement issued in the names of the two PACS tells the amount of income received by the partners since the date of agreement until December 31. This declaration must be signed by both contracting parties.


The principles of joint taxation of the PACS:

The tax bases in a PACS are primarily income, assets, donations and bequests and accommodation. In principle, both partners must live together in a shared home, like married couples. Otherwise, they will be taxed separately and submitted to the regime of separate property. Each partner should then make separate statements not to be liable to prosecution for false statements. For breach of the PACS, all benefits will be jeopardized. The partners shall be taxable communally until the date of conclusion of the pact. They are jointly and severally liable to pay tax on the income declared in common. In other words, the tax authorities may require either full payment of the tax to one or the other partner.

The mechanism and the benefits of joint taxation of the PACS:

The joint taxation on income is quite beneficial in the PACS. For the current year, the partners are taxed on their income earned from January 1 to the date of the union. The joint assessment is paid on total income, two individuals received from the closing date to December 31 of the PACS. This amount will be the basis for calculating tax liability. It is best to conclude the PACS to the mid to benefit from a significant reduction of the tax. If both partners have similar incomes, the taxable amount will be halved. Partners with dependent children, will benefit from the cap of the quotient family to reduce the amount of income tax.

Since 2010, the solidarity tax on wealth is effective on the heritage of couples civil unions, valued at more than 790 000 euros and should be an agreement of separation of property. The partners must make a joint declaration of Isf from the first fiscal year after the conclusion of the union PACS. PACS partners benefit from a tax reduction of 76 000 euros and a progressive rate of 40% for the portion exceeding 15 000 euros and 50% of the value of donations and legacies. They must pay the taxes corresponding to the difference of the amount exceeding 76 000 euros. PACS partners are exempt from inheritance tax. The residence tax is based on the principle of solidarity partners and must be supported jointly by the two individuals.