POLICY – meps adopted on Friday, November 18 in the evening the flagship measure in the draft budget 2017, the introduction of deduction at source of tax on income from January 2018.
The opposition, which has promised to come back on this measure in the case of alternation, was prevented Thursday the adoption of this article. But the government had then asked for a second deliberation, which took place Friday and at the end of which the deduction at source has been widely voted.
The right was defended on Friday evening in the chamber by only one mp, LR, Claudine Schmid, against a thirty the day before when the opposition had managed to surprise the majority by voting, in a voice almost, an amendment challenging the whole reformation.
2017, “year in white”
The reform provides that, from 1 January 2018 the tax will be calculated on the income of the current year and not on the income of the previous year. This amount will be paid directly to the wages or retirement pensions. It is, therefore, a third party – the employer or the pension fund – which collects taxes.
READ ALSO: How to calculate the withholding tax and your net wage?
The tax administration will calculate the sampling rate according to the income of the previous year. The January 2018 will be communicated to employers or other organizations that collect the tax by the end of 2017.
The taxpayer may opt for a neutral rate, or individualized in order that his employer may not be able to “guess”, based on its sampling rate, the level of its other income or those of his spouse. This rate can be adjusted in the course of the year in the case of the evolution of income (salary increase, retirement, loss of employment, etc.) or change of family situation.
As taxpayers pay in 2017 of the tax on the income of 2016 and in 2018 the tax on the income of 2018, those of 2017 will therefore not be taxed. The exceptional income and discounts, or tax credits, this “year in white” will be taken into account in 2018, to avoid shortfalls or windfall effects.
The mps voted on Friday amendments to exclude from the scope of these non-recurring revenue, taxable benefits, end of xed-term contracts and temporary assignments. In contrast, the premiums of welcome “golden hello” or starting paid in 2017 will be well-considered as non-recurring income as the premiums of signatures and indemnities related to transfers of professional athletes.
A reform really “simplifying”?
deputies have not remade the political debate on Friday. Thursday, the elected LR, as Marc Le Fur and Hervé Le Mariton, had been very raised against reform “excessively complex” and very concerned of their “reversibility”, the right have almost unanimously promised to return it.
The minister of Finance Michel Sapin had conceded that “any reform is, by definition, reversible”. But he was asked about the interest of “return on reform, which has asked for as much work (…) and meets a no-brainer, in terms of simplification”.
The SGC Finance has, however, challenged in a press release this simplification. “Citizens hoping to see a lightening of their administrative procedures are going to be disappointed. In effect, the withholding tax shall not relieve or statement, nor notice of imposition, but will generate especially a series of steps to change its tax rate throughout the year in response to fluctuations in income and changes in circumstances, professional or personal,” said the union in the evening.
also Read :
• Why the tax revenues will increase in spite of the gift tax
• Taxes: the real winners of the quinquennium Holland (and others)
• What is proposed in Bercy against the problems of confidentiality of tax at source
• To follow the latest news live on HuffPost, click here
• Every morning, receive free of charge the newsletter of the HuffPost
• Find us on our page Facebook
see also HuffPost:
Send a correction