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Taxes: five practical questions about the levy at source provided for in 2019

The minister of public Accounts, Gérald Darmanin, has confirmed this: the collection of the tax at the source shall enter into force on January 1, 2019. The ini

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Taxes: five practical questions about the levy at source provided for in 2019

The minister of public Accounts, Gérald Darmanin, has confirmed this: the collection of the tax at the source shall enter into force on January 1, 2019. The initial copy has been reviewed.

mentioned Many times, originally scheduled for 2018 and deprogrammed, the deduction at source of tax on income is again announced on 13 November by the minister of public Accounts, Gérald Darmanin, for implementation in 2019. The copy has apparently been revised and simplified, in particular vis-à-vis companies and organizations (pension funds, ...) in charge of collecting the tax, and parties complaining of a heavy and costly implementation.

In this new version, the employer would receive from the tax administration in September 2018, a rate indicating the percentage of the salary to withhold every month from January 2019 to be applied to each employee.

1. How can the sampling rate be calculated?

This rate of levy is to be fixed on the basis of the statement of revenues, 2017, carried out in may/June 2018. As soon as the first income paid in 2019, it will be applied to the salary: the deduction at source will be automatic and will be clearly displayed on the pay slip. It will then be updated in September 2019, to take into account possible changes resulting from the statement of income in 2018 carried out in the spring of 2019. Because the requirement to complete a declaration of income in all years does not disappear.

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The self-employed and recipients of property income pay their income tax via instalments calculated by the administration on the basis of the past position and collected monthly or quarterly. For employees or pensioners who receive an income each month, the tax will now be spread over twelve months.

2. Is it possible to customize the collection?

By declaring its revenue online, the taxpayer will be informed immediately of the rate of the levy that will apply from January 2019. At this time, each member of the married couple or partner may opt for a rate that is individualized to the place of the rates proposed by the tax administration. Just as each is entitled to refuse to transmit the rate provided to the employer.

In this case, informed of the refusal, the authority shall transmit to the employer the rate chosen by the taxpayer. If the taxpayer accepts the rate proposed by the administration, it will be as soon as October 2018, the amount that will be deducted from his salary from January 2019.

3. What will happen in the event of changes in the course of the year?

If the status change involves a significant modification of the tax payable (loss of employment, increase of wages, divorce, etc.), the taxpayer retains the right to amend the rates of levy at any time on the site impots.gouv.fr. It can make a simulation, to calculate the increase or decrease expected and validate its request to the tax administration.

If his income changes (payment of an exceptional bonus, for example), the levy will adapt every month to the income received, since it is a percentage. If the income decreases, the amount of the levy will decrease in the same proportion. Conversely, if it increases, the amount of the levy will increase in the same proportion. The amount of the debit will vary automatically in the course of the year depending on the evolution of income.

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For a first job in 2019, for which the tax administration does not have seniority, the employer will apply to the wage rate, non-custom, which is the income of a single person without children. If the salary does not exceed 1.367 euros net monthly, the deduction rate will be equal to zero. The employer may also obtain the rate with the administration to apply on wages.

4. What happens to the discounts and tax credits?

The discounts and tax credits in respect of donations to the associations acquired the title of 2018 will be maintained. The administration will donate to the summer of 2019 at the time of the balance of the tax. The taxpayers benefit in 2018 of a tax credit "service person" (costs of child care for children under 6 years of age and home-based employment) will receive a deposit of 30% in the first quarter of 2019. The one year lag is maintained for them.

Read our complete file

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5. What is the tax payable on the income of 2018?

This issue is still outstanding. Should normally be set in 2019, the tax payable on the income of 2018 will come-t-he stack to the levy of 2019, which would create a double tax burden is hardly tenable? Or the year 2018 will purely and simply not imposed? Response in the coming days, during the discussion of the project of finance law to the national Assembly.

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