Withholding tax: that means a lost year – BBC

THE SCAN ECO – The 2017 wage income will not be taxed, said the Secretary of State Christian Eckert. Le Figaro reported on this true-false “gift tax”.

“From 1 January 2018, the withholding will be launched irreversibly “, said Finance Minister Michel Sapin Le Figaro . The Secretary of State, Christian Eckert, has meanwhile confirmed a tax “white” year for 2017. A true “tax gift” or single-action ads, Le Figaro returns to the mechanism blank year to raise doubts and fantasies.

A white • What year is it?

The establishment of withholding, wanted by the government, demand developments. For now, the income tax is based on income from the previous year. For the year 2015, the taxpayer is levied on income he earned during the year 2014. The withholding tax is him on its revenue this year. The year 2017, year of transition between the current system and future device will be a year “white” tax, announced Christian Eckert, secretary of state.

The white year means that revenues of 2017 will not be taxable. In 2017, taxpayers will pay their income taxes for the year 2016. And in 2018, on revenue of the current year. “There are two options for the transition year between the old and the new device, says Philippe Donneaud, tax lawyer at CMS Bureau Francis Lefebvre. Pay double taxes: those on incomes of the current year, and those on income from the previous year. Or give a blank year, that is to say giving up pay than in the previous year. ” The government has chosen the blank year. “Mechanically, we can not ask someone to pay two years tax at once. Wage income of the white will never taxable year “, also notes Dorothée Traverse, are tax lawyer at Moisand Boutin cabinet.

• How is the white establishment year?

Michel Sapin announced in Le Figaro that withholding tax would take effect on 1 January 2018, of “irreversible.” Its implementation still raises questions. From September, the draft budget for 2016 should pave the way, encouraging monthly-payment and e-filing. Meanwhile, the government plans a white paper for the next year environment.

For the rest, everything is just speculation because nothing is stopped. “The withholding tax will be introduced gradually, suggests Philippe Donneaud. This will probably be offset by a system to prevent thrift effects. Otherwise, one can imagine that taxpayers will anticipate revenues of 2017. Presumably a system where the first year, only 20% tax will be deducted at source and the remainder in the conventional form for example. ” Dorothée Traverse, she “does not believe the remedy: the rocker will do at once, otherwise it becomes unmanageable. No smoothing, but adjustments in the event of exceptional wage income. “

• The white year she relates all income?

Only wage income is taken into account for the lost year. It does not apply to capital income and exceptional remuneration. “The land income, capital gains, can not be integrated because it is income on which the employer’s control. More lasting, this type of income will fall outside the deduction at source, “added Philippe Donneaud. “We have a job to drive to avoid windfall” acknowledged however Christian Eckert on i-Tele.

• What impact for individuals?

This white year she is actually a “tax gift”? “Not at all, replied Dorothée Traverse. Taxpayers will continue to pay taxes each year and to make their statements. ” The same goes for Philippe Donneaud. “I do not believe in the gift tax, he says. We can not say that taxpayers will not pay tax for a year. The white year simply allows not pay double taxes (those of the current year and those of the previous year). Today taxpayers are fully aware of the taxes they pay, which will not be the case with the tax at source, it is wanting invisible and painless. Moreover, with this system, the administrative burden will be almost exactly the same as today. ”