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- What are the income concerned
- How will apply the tax rate?
- What happens to the family quotient?
- What is the timetable œ in work of reform?
According to Bercy, almost all taxpayers and income are affected by this measure. In other words: employees, pensioners, job seekers or recipients of income replacement, freelancers and owners who receive property income. Only income from securities and real estate gains will not be directly affected by this reform, are themselves already deducted at source
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Among employees, tax will be deducted by the employer, based on a tax rate calculated and transmitted by the tax authorities. It will appear on the payroll as of January 2018, as well as social contributions. Same thing for retirees, this last detail that the collection will be made by the pension fund. For job seekers, this one will be provided by the employment center.
The self-employed, in turn, will pay a monthly or quarterly payment, calculated by the administration on the basis of 2016 revenues then adjusted in the fall based on 2017 revenues reported in the spring. If fear of a sharp drop in income in 2018, they can report it so that is modulated tax on the basis of a new estimate. This interim mechanism will also be applied to property income.
Calculated by the tax authorities, the tax rate will apply to income received each month. If income decreases, the levy will decrease; if it increases, it will increase in the same proportion.
The taxpayer may also request an in-year update of its tax rate in case of significant change in income from home or a change of situation.
“the employer will not be informed or family status or other income received by the employee , assured Mr. Eckert Wednesday. This is the tax administration will remain the sole recipient of the tax information and the sole contact for taxpayers. “ It is in his annual tax return, made in the spring, the taxpayer will include these elements.
“the tax will continue to be calculated tax household level” , stressed the Minister of Finance Michel Sapin. The familialization and conjugalization tax, despite the withholding will be well maintained.
To take into account any income disparities within couples, spouses, however, may opt for two rates different tax. “It is not a tax individualisation, but simply a different distribution of tax payment” , argued Bercy. “This will not affect the amount” have.
The transition to withholding will not prevent taxpayers continue to benefit from reductions or tax credits, for example, when investing in the renovation of their homes to save energy or when making a donation to charity. “All these incentives will be retained with the reform” , promised Mr. Sapin. The minister added that the income tax served “also assist taxpayers in specific situations” .
the reform of the withholding tax must be adopted by the end of 2016. So qu’aujourd ‘ hui the income tax is levied with a lag of a year, it will now be seen in “real time.” Which will adjust the amount of tax depending on the changing situation of the taxpayer.
In 2017, therefore, taxpayers will pay their income tax in 2016 and, 2018, they will meet their obligations each month on their income from 2018. the state budget will continue to collect taxes on income in 2017 and 2018 uninterruptedly. “There will be neither white nor dual year year” says Mr Sapin.