This will be the last of the quinquennium. Tuesday, 20 December, meps finally adopted the ultimate text budget of the Hollande era. After many discussions and two releases prior to the Senate, which has refused to deliberate on this text in which he challenged the “sincerity”, the Finance bill 2017 is back in the final reading in the Assembly, where it has, therefore, been definitively voted. The text, several times revised, in particular in the commission contains new features.
In an accounting after the vote, the minister of Economy, Michel Sapin, and the secretary of State for the Budget in particular have touted in a press release, the introduction of deduction at source of income tax as “historic” and as “a real step forward for the French public”. Here’s what you should remember.
1. The levy to be the source said
It is the flagship measure of the text. The tax reform, which is now withheld at the source, figure in the text voted on Tuesday 20 December. The government argued for this change in size for several months, presented as simplifying the lives of taxpayers. The income tax will be, from January 1, 2018, withdrawn directly by the employer on the pay slip based on a rate transmitted by the inland revenue via the Declaration Sociale Nominative (DSN).
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The reform has sparked harsh criticism especially on the part of the employers, who deplored this new role of tax collector for the company, its “complexity” and the possible tensions that await employers. Pierre Gattaz, the boss of the Medef has even been called the project of “disaster for business”.
Still, the measure is now passed. The latest debates have introduced an amendment to the short-term through an amendment. A neutral rate of taxation will apply in the first two months of the contract of an employee. To avoid that the employees linking employers and short-term are over-levied, a deduction has been voted for the CDD of less than two months, corresponding to 1.6 times the minimum wage.
The entry into force of the scheme in 2018 is still subject to the whims of the next government. The CGPME, in a statement released after the vote of the members, is to be hoped that it is possible to go back to the text before its entry into application ! The CGPME will employ. said, “hope that it is possible to go back to the text before its entry into force”, and promised to “use”.
2. Compromise on the free shares
This was a real soap opera that the free shares. The vote of deputies in favour of a tightening of fiscal terms governing the allocation of free shares (AGA) had aroused the wrath of the contractors. The deputies have voted, against the advice of the government, for a system controlling a better understanding of what type of compensation and its possible ethical drifts. A compromise was reached in the committee on finance, carried by its president and rapporteur of the budget, Valérie Rabault.
which was since the law Macron, that is to say a reduction, which remains in force, but only up to a ceiling of € 300,000 per year. Beyond that, the gains will be taxed according to the scale of the tax on the income. Finally, the employer’s contributions, increased by 20% to 30% with the exception of SMES not paying dividends. These new regulations will only apply from 2017 and for decisions taken at an extraordinary general meeting.
3. The decrease in the rate of the IS confirmed
in Addition to an income tax reduction for households, the budget bill 2017 confirms a decrease in the rate of tax on companies. Article 6 of the text provides that the normal IS rate be set at 28% compared to 33% currently. This rate will be achieved gradually by 2019. It will be applied as of 2017 for companies with up to 75 000 euros profit, on the part of the income taxable to 38 120 euros and 75 000 euros.
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This rate will apply from 1 January 2018 for companies with up to 500 000 euros of taxable income. Beyond that, it is the rate of 33% will be applied. For the CGPME, this decrease remains “symbolic”.
Finally, as expected by the government since September last year, the YEAR 2017 will now be 6 to 7% of payroll.
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