Question 9529 — taxes and duties

Summary

Until the 2008 income tax, single, divorced, separated or widowed taxpayers without dependent children benefited from an increase of an additional half-share of the family quotient when they lived alone and had one or more children subject to separate taxation or had a child who died after the age of sixteen. These derogatory provisions instituted after the Second World War to taking into account mainly the particular situation of war widows no longer corresponded to the current situation. The purpose of the family quotient is to take into account dependents within the household in the assessment of the taxpayer's contributory capacities. The allocation of a half share, regardless of the number of actual dependents, constitutes an important exception to this principle and confers on the beneficiary a tax advantage that increases with your income. The legislator has decided, from the taxation of income for the year 2009, to refocus this tax advantage for the benefit of single, divorced, separated or widowed taxpayers living alone and who have borne the sole or primary responsibility for a child for at least five years. Failing to respect these conditions, single people benefit from a share of family quotient. However, since then, certain measures have made it possible to restore the situation of taxpayers with modest incomes who were subject to taxation due to the elimination of this additional half-share. In terms of income tax, for 2017 income, the tax threshold for single people starts at €14,611 of net taxable income. In addition, in addition to the discount mechanism, correction made to the tax on income which makes it possible to mitigate the effects of entry into the tax scale for taxpayers with modest incomes, a tax reduction subject to income conditions has been instituted on a long-term basis. This concerns taxpayers whose reference tax income (RFR) is less than €20,705 for singles, widows and widowers. Its rate is 20% up to €18,685, and decreasing beyond that. This limit is increased by €3,737 per additional half-share (disability for example). In terms of local direct taxation, the loss of the half-share has been neutralized with regard to its possible effects on the housing tax (TH), the property tax on built properties and the contribution to public broadcasting. Furthermore, article 5 of the finance law for 2018 establishes, from the 2018 taxes, a new relief which, in addition to the exemptions existing, will allow around 80% of households to be exempt from paying TH for their main residence by 2020. This new relief will concern households whose resources do not exceed €27,000 of RFR for one share, increased by €8,000 for the next two half-shares, i.e. €43,000 for a couple, then €6,000 per additional half share. Finally, the amount of the minimum old age and the solidarity allowance for the elderly (ASPA) was the subject of a significant increase from 2018. The amount of the ASPA and the old age minimum will reach €903 per month from 2020, or €100 per month more than today. The Government therefore wished to favor general, fair and transparent measures, in order to take into account the situation of all low-income elderly people. In this regard, as indicated by the President of the Republic, the Government is not in favor of reinstating, in its version prior to 2009, the half tax share for people living alone and having had one or more children.

Machine translation from French. The official text remains authoritative.

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