French tax payment system 2019

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Crystal
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French tax payment system 2019

Post by Crystal »

Please could someone explain to me - in very simple terms - the new 'pay as you go' tax payment system starting next year?

exile
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Re: French tax payment system 2019

Post by exile »

Are you working for yourself, working for an employer, retired or unemployed/inactive?

Crystal
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Re: French tax payment system 2019

Post by Crystal »

In our household we have 2 self employed, one working for an employer and one retired! - I do everyone's admin, so need to know how it will affect everyone. :roll:

Le Démerdeur
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Re: French tax payment system 2019

Post by Le Démerdeur »

No taxes or charges to pay for 2018, it will be une année blanche:

https://droit-finances.commentcamarche. ... -la-source

If your income/earnings remains stable there will not be any significant difference to what you pay monthly, the benefit will come when you cease earning and/or leave the country, instead of having a full year of impôts to pay you will already be up to date.

A similar thing happened in the UK IIR in the 90's, I had both self employed earnings and wages + dividends from my limited company, I was able to do some creative accounting and delay some earnings and bring others forward to the year that was being written off, for my current situation in France I cant see any way of doing the same but others will be taking advantage.

Once the new system is up and running I think an employee will no longer have a tax bill to pay at the end of the year unless they have declared other earnings.
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Crystal
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Re: French tax payment system 2019

Post by Crystal »

I understand it's a straightforward 'year off' for those who have a fairly regular and consistent wage or income, but for the self-employed, not so...sounds like it will depend on what they decide are "revenus exceptionnels"...

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Re: French tax payment system 2019

Post by Le Démerdeur »

Unless you have a few more zeros on your declared revenus than most self employed you have nothing to worry about, you could have a bumper year this year and it would not be exceptional, happens all the time, if you shuffle millions around with dodgy accounting in 2018 only then they may look and consider it exceptional, proving it and making it stick is another matter, as usual the mere threat ensures close to 100% compliance with the natives.
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