Paris Match. What is the reform of the pre-reform to the source?
Currently, the tax is collected each year following the perception of income, starting from the declaration that you make at the beginning of each year. The reform undertaken by the government aims to bring together as closely as possible the income earned and the amount of tax, which will be directly deducted from your bank account. The draft law provides for an adjustment of the rate of the premium on a monthly increase or decrease basis. That said, withholding tax remains a form of payment: you will continue to make up a tenfold portion of income to determine the final amount of tax payable.
Is there an obstacle to its implementation?
It is possible to move to the source principle and the accounting profession is ready to support companies in this change. The main obstacle is psychological. The French are used to a direct relationship with the tax administration but not to the ‘intermediation’ of the company. In addition, the difference between gross and net salaries will increase. At present, withholding taxes on salaries account for an average of 22% of gross income. With the pre-payment of the tax on the income, the price may exceed 30% or 40%.
“Tous les revenus seront soumis au prélèvement à la source
Who will be concerned?
With the exception of the transfer of movable securities, all income will be subject to the prior approval of the source. Y compris ceux des indépendants et des propriétaires bailleurs qui devront reverser directement un acompte d’impôt au Trésor public. The deductible charges will be taken into account for the calculation of the rate of taxation on the basis of data made known to the Administration. On the other hand, if you are not taxable or if your taxable income is less than 25000 euros for tax purposes, you will not be taxed.
How is the bascule going to be operated?
Next year, you will pay your tax on your 2016 income. Then, nothing will change if your income is only salaried. In January 2018, your salary will be taxed at source. Il n’y aura donc donc pas d’impôt en 2018 sur les revenus de 2017. The benefit of the reductions and tax credit attached to expenditures made in 2017 will not be lost: these elements will have to be declared in order to be taken into account in the tax assessment notice of August 2018.