Thursday, December 15, 2016

The income tax reduction of 20% advanced as early as January 2017, Le Figaro

At the last minute, the government tabled an amendment to the draft finance law for 2017.

what good is a tax cut approved in the budget prior to the elections, as it was 1 billion euros, if the voters do not see the effect before you go and vote? To not much, was clearly considered by the government. He has tabled an amendment last minute to the draft finance law for 2017, which plans to apply as early as the month of January the decrease of the income tax (IR) of 20 % presented in September last year.

to be clear, the five million households affected by the measure – that is, singles whose income tax reference does not exceed 18 500 euros per year (or by smoothing 20 500 euros) or couples earning less than 37 000 euros per year – will see their tax bill decrease from January 2017 if they are wage, or as early as February of 2017 if they pay a third provisional. Without the amendment, they would have had to wait at the end of August-beginning of September, the date of final settlement of the tax on the income of 2016, to take advantage of the gift tax. Because usually the monthly payments of IR paid in year N (e.g. 2017) are calculated by dividing by ten the amount of tax paid in the previous year and therefore have not taken account of the measures enacted in the finance act the previous fall (2016).

The amendment the government aims to restore the “purchasing power to the French as early as January (for those who are wage)”, has assured on Twitter the secretary of State for the Budget, Christian Eckert. “Rather than wait for the month of August, we have chosen to make from the month of January or February for those who are in the third part of the tax cut,” she said Bercy. The gift is assumed.

The catch? This rebate is anticipated to be awarded under the last income tax reference known, that is to say, the one of 2015. A home benefiting from the measure, but having seen its revenues increase by 2016-beyond that which he would be entitled to the act, tax may therefore have to make a large sum of money to the tax office in September.

The amendment was to be discussed in plenary session by meps this Thursday evening.


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