The 2017 income tax return, which the 37 million French households must complete in May or June 2018, is the last one before the withholding tax on income. A major change that begins with this declaration with an important choice to make for the 2019 taxes.
This is the sampling rate which will be defined at the time of this 2017 tax return and which can be modified to be taken into account at the next two tax returns.
For an online declaration on the website taxes.gouv.fr this is done via the tab “”. Manage my withholding tax at source “: this is especially important for two-person tax households, to prevent both spouses from being taxed at the same rate in 2019, based on the accumulation of both salaries: choose the rate adapted to each person’s individual income.
It is also possible to choose the “. neutral rate “in order not to inform the employer of our withholding tax rate, it will be necessary to regularize the situation with the tax authorities each year. In this case, you yourself will have to pay the tax authorities the difference between the levy at the personalized rate and the neutral rate calculated by the employer.
This will therefore be a little more complex to manage each month, compared to a transparent tax system managed by the employer directly with the tax office.
All this is explained in the videos below, in short version:
Or more complete:
The details in text version .
In summary: nothing will change to report income earned in 2017 but this 2017 income tax return already allows you to define the withholding tax rate to be used from 2019 onwards . Income tax will thus be deducted directly from the pay slip for each month of employment status. The 2018 income will not be taxed ( blank year ) but the withholding tax will be levied as from January 2019.
From 2019 onwards, additional land and professional income will still have to be paid directly to the French tax authorities. A monthly instalment will be proposed at the same time as the tax rate, a kind of monthlyization on the taxation of income related to the status of employee but which could be in the form of a quarterly rather than monthly levy.
If you are an entrepreneur (BIC or BNC ) or that you receive income from property (renting an apartment, for example), you are therefore concerned by this additional levy to the withholding tax on employee income.
Manage withholding tax at source on impots.gouv.fr