According to Bercy, almost all taxpayers and income are concerned. Namely: wages and salaries, pensions and retirement, income independent, recurring income from property and income called “ replace ” such as unemployment benefit or maternity leave.
Only the income from securities and real estate gains, representing 2% of the income of taxpayers are not affected by the reform … are themselves already deducted at source.
Among employees, tax will be deducted by the employer on the basis of a sampling rate calculated and transmitted by tax administration: it will appear on the payroll as well as social contributions. Same thing for retirees, this last detail that the collection will be made by the pension fund.
The taxpayers do not want their employers are aware of their financial situation may request that a “ neutral rate ” is applied to them by default, near the scale of a single person without children, and then pay directly to the tax authorities pay.
The self-employed, in turn, will pay a monthly or quarterly payment, calculated by the administration according to their income the previous month and adjusted according to their actual income.
Calculated by the tax authorities, that 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.
Note: the taxpayer may request in during the year an update of its tax rate in case of significant change in income from home or a change in family situation.
It will also continue to send its annual tax return every spring. The opportunity to declare all of its sources of income and tax advantages it enjoys.
The tax will continue to be calculated at the tax household: the familialization and conjugalization of the tax, despite the deduction at source will be well preserved.
To take into account any income disparities within couples, spouses, however, may opt for two different tax rates depending on their income. “ It is not a tax individualisation, but simply a different distribution of tax payments ,” says Bercy, for which “ it does have no impact on the total amount of tax payable by the couple . ”
The transition to withholding does not change the rules for calculating the tax and therefore does not prevent taxpayers to 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.
The reform of the withholding tax must be adopted this fall by the Parliament in the Finance Bill 2017.
in September 2017, taxpayers will receive the tax rate at source will be applied to them, based on 2016 earnings at January 1, 2018, their taxes will be directly deducted from their paycheck on that basis. This rate will then be updated every year in September.
The tax is thus paid each year: in 2017 of income from 2016 in 2018 to 2018 income, then in 2019 on revenues of 2019, etc. What will happen to the revenue 2017 ‘Bercy ensures that there will be no double taxation in 2018: “ the tax normally due under non-exceptional income received in 2017 will be canceled “.