Wednesday, May 20, 2015

Levy tax at source on how much less your … – The Express

It is the emblem of tax simplification. The withholding tax on income, a campaign promise of Francois Hollande, remains the objective of the government, according to his spokesman Stephane Le Foll. Although the idea of ​​a merger with the CSG, already deducted at source, is abandoned. Less costly for the State which would entrust the task to a third party to collect the tax, the withholding tax is also presented as advantageous to the taxpayer that would each month a clear vision of its income. And that would spare the chore of the declaration.



2000 euros net become 1697 euros

There are still a drawback. Each month, on the employee’s payroll, a new deduction made by his company on behalf of the State. For example, for a single taxpayer earning 2,000 euros net, taxed at 14%, it would take 303 euros for a final salary of 1697 euros net.

The difference compared to the monthly payment, an option that had been chosen by 72.8% of taxpayers in 2010? First, the tax is paid in year N, not the year N-1, which is a good thing for him. Then, even if the withholding is not more expensive than the monthly payment, the taxpayer loses the freedom to manage the payment of taxes. Possible, for example, to pay without tapping into the current account. “The withholding limits freedom monthly management of taxpayers,” says one to the Express to the CGT Public Finance.

As for the paperwork, not sure it disappears altogether, since it will set up a reporting system afterwards. Indeed, the income tax is familialisé, the spouse who earns the least pay directly from his salary part of the tax due by the couple. A break of tax equality that the tax authorities would then have to repair.

& gt; & gt; Read: Why France resists withholding

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