I have a very specific question. I am a dual European-American citizen. I live in France. I declare my income on French investment accounts to the US, and am generally tax-compliant.

I contribute each year to a French tax-exempt retirement plan, called a PERP. In France, contributions to this plan are deductible from income (for tax purposes), up to around 10% of income. My question is this: Under the US-France tax treaty, are these contributions also deductible from US income, or not?

Thanks for your replies.



I am not an accountant or financial advisor.

Look at the relevant tax treaty.

This IRS explanatory document says:

In the United States, the plans that are automatically eligible for benefits under paragraph 2 include a French pension or other retirement arrangement organized under the French social security legislation.

which also has

an individual, with respect to dividends beneficially owned by such individual and derived from investment in a retirement arrangement under which the contributions or the accumulated earnings receive taxfavored treatment under U.S. law

under paragraph 4(vi)(e)(ii)(cc) (how's that for indenting!).

Bottom line: it's not clear to me, but it sounds like the contributions may be.

You need to consult someone knowledgeable about the treaty!

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