Sunday, July 31, 2016

Michel Sapin clarifies the withholding of income tax – The World

Michel Sapin July 19 at the Elysee.

the finance minister Michel Sapin, and the state budget secretary, Christian Eckert, said the removal of contours to the source of the income tax, due to come into force on 1 st in January 2018.

Mr. Eckert assured: the 2017 presidential election will not call this deadline involved. “We are taking the necessary steps to reform that came into force in 2018″ , has he declared in regional dailies Ebra group. “I am convinced that no one will return to this reform because it is desired by the French, and it is desirable, just and modern” , he said.

Read also: tax: the answers to your questions about withholding

this project is that the income tax is charged on the employer, based on a tax rate calculated and transmitted by the tax authorities. Income will be taxed directly as each month for the current year and no longer under the previous year.

“From tax returns made in spring 2017, the tax authorities will calculate the effective tax rate of the home “, explained Finance Minister in the Sunday Journal . “The taxpayer shall know in the summer. The tax rate will forward it to the employer, pension fund, employment center … Who will charge in January and pay the amount to the tax authorities “, has he detailed.

in spring 2018, taxpayers will make a new income tax on 2017 earnings that will result if any “a new re-entry to applicable rate” with the key to a refund ” in case of overpayment “ or ” residue “ to pay otherwise

Read also:. what the levy the source of the tax change to your income

“the rate will be subject to secrecy”

as is also the case in Germany, spouses have significant income gaps “can choose a rate each instead of the overall rate of their home” . In case of change of activity or family situation, it will be possible to ask the tax authorities a new rate during the year. “The administration will change it within three months” , said Mr Sapin.

“The rate will be subject to secrecy. Disclosure by the employer (or any third party) will be punished by law “, he added, evoking the hypothesis of a five-year maximum prison and 300,000 euros of fine, he added. Taxpayers who do not want their employers are aware of their financial situation may request that a “neutral rate” be applied to them by default, and then pay directly to the tax authorities balance confirmed the Minister.

This rate “neutral” or “standard” will be applied in case of first use or if the taxpayer is attached to his parents’ home. “It corresponds roughly to the one that applies to a single person without children” says Mr Sapin.

The text, which was the subject of criticism in the spring both unions of tax administration that employers should be subject to parliamentary “in the second half of August” , according to Bercy.

Read also: How to levy tax at source is it practiced elsewhere in the world?


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