A new tax payment system of ‘deduction-at-source’
has been introduced from 1st January 2019 and will concern almost
all French tax paying citizens, including employees, civil servants,
retirees, self employed, landlords etc.
In practical terms, nothing will change
in 2018 – tax will be paid based on 2017 income. As of 1
January 2019, tax will be deducted from 2019 income.
For many, this will prove beneficial as the current tax system
operates on a back dated basis of 1 year. This new system will
mean that French citizens will no longer have to put money aside
concerning French derived income.
The rules governing the way tax is calculated will not change,
particularly with regard to pay scales and the consideration given
to marital and family situations.
Your local tax office will remain your point of contact for taxation
issues and will also be the sole organisation that receives and
deals with the tax information provided in the tax declaration.
Taxpaying couples will be able to opt to pay different rates of
tax to each other.
For non French people, resident in France , things will not alter
greatly as any income derived from outside of France cannot be
subject to a withholding tax , so in terms of UK pensions, bank
interest and UK rental income etc.. the way tax is calculated
and declared will not alter greatly .
Even with the introduction of tax paid at source, every household
will be obliged to complete a French tax return.
You may receive or have already received letters from the tax
officials asking you to verify your personal details , specifically
your social security number as it is from your SS number that
they will collect any tax if necessary.
If you receive the letters, they need to be completed and returned
by the deadline of 15th January 2018.
If you need any help regarding this matter please do not hesitate
to contact me