{"id":2528,"date":"2019-01-31T09:37:43","date_gmt":"2019-01-31T08:37:43","guid":{"rendered":"http:\/\/www.lrf.fr\/?p=2528"},"modified":"2019-03-08T12:01:22","modified_gmt":"2019-03-08T11:01:22","slug":"prelevement-a-source-de-limpot-revenu","status":"publish","type":"post","link":"https:\/\/www.lrf.fr\/en\/2019\/01\/31\/prelevement-a-source-de-limpot-revenu\/","title":{"rendered":"Withholding income tax"},"content":{"rendered":"

The withholding income tax came into force on January 1, 2019<\/strong>.<\/p>\n

Personal income tax withholding system<\/span> is intended to adapt the recovery of the tax for one year to the actual situation of the user (income, life events) in respect of that same year, without changing the rules of calculation. Its objective is to eliminate the one-year lag between the collection of income and the payment of income tax.<\/span><\/p>\n

<\/p>\n

From the first income paid in 2019, the rate of tax is applied to the salary: the levy at the source is automatic, and appears clearly on the payroll. The withholding income tax rate will be updated in September 2019 to reflect any changes that may have occurred as a consequence of the 2018 income tax return in the spring of 2019.<\/span><\/p>\n

In the event of a change in circumstances leading to a foreseeable change in the significant tax, the taxpayer may, if he so wishes, request an update during the year from the sample rate at the source. The impots.gouv.fr site allows each taxpayer to simulate the possibility of modulation and to validate the application with the tax administration.<\/span><\/p>\n

ARE YOU LIABLE TO INCOME WITHHOLDING TAX?<\/span><\/h3>\n

All companies that pay wages taxable in France must carry out a wage withholding tax and pay it on a monthly basis to the tax services in accordance with the conditions to be determined according to the place of tax residence of the employee and the place of his liability for social security contributions.\u00a0<\/span><\/p>\n

DO YOU NEED A SEPA BANK ACCOUNT?<\/span><\/h3>\n

The payment of the withholding income tax is carried out by means of a BtoB SEPA bank account. Transfers or other means of payment are not accepted for wage withholding tax.<\/span><\/p>\n

Employers established abroad paying wage withholding tax in France must therefore have a SEPA-zone bank account.<\/span><\/p>\n

DO YOU NEED A FISCAL REPRESENTATIVE?<\/span><\/h3>\n

YES, in case you are not a permanent establishment:<\/span><\/p>\n