Question 9520 — income tax

Summary

The withholding tax on income is a reform of income tax collection whose objective is to make the payment of tax contemporaneous with the collection of income. The withholding tax rate does not take into account tax reductions and credits except in the particular case of taxpayers whose reference tax income is less than €25,000 per share of family quotient and whose the income tax for the last two known tax years is zero. In this case, the withholding tax rate is zero. The legislator has provided for the payment of an advance on the amount of certain reductions and recurring tax credits on January 15 of each year. This advance, whose initial rate was 30% and which was increased by the finance law for 2019 to 60%, applies to the amount of benefits that have been granted to taxpayers the previous year for expenses of the penultimate year, in order to take into account the intra-annual cash flow effects that may result from the implementation of the withholding tax. The initial scope of this advance concerned the employment of an employee at home as well as the costs of caring for young children. The finance law for 2019 expanded this scope by integrating the tax reduction for donations, the tax reduction for accommodation expenses in EHPADs, the tax credit for union dues as well as tax reductions in favor of rental investments such as the so-called “Censi-Bouvard”, “Scellier”, “Duflot” or “Pinel” schemes. This advance allows the taxpayers concerned to receive from the start of the year a payment corresponding to more than half of the tax advantages they benefited the previous year (2018) for the year 2017. Regarding donations, 6.3 million tax households were able to benefit from this system in January 2019, for a total amount of 840 million euros. As they have done until now, taxpayers will have to submit an income tax return in the spring, indicating in particular their donations from the previous year. The corresponding tax reduction will be paid to them in the summer, after deduction of the 60% advance which they received, where applicable, in January of the same year.

Machine translation from French. The official text remains authoritative.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

No documents linked.

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.