- Category: Taxes
French 2019 taxation changes
On January 1st 2019, a couple of changes to taxation in France will happen. In particular, Taxation at the source (in French, “prélèvement à la source”) will now apply. But what exactly is it, and will change?
What’s new, exactly?
Until now, there was a 1-year difference between the moment you received your income, and the moment you paid your taxes. In other words, in 2017, the tax you paid was calculated based on the revenue you got in 2016.
However, in 2019, that will not necessarily be the case anymore. Depending on the type of revenue, you’ll pay your taxes directly based on the revenue you generated that month!
This means, among other things, that taxation is easier to manage. Indeed, with the current system, someone with fluctuating revenue might end up paying taxes higher than they should, considering how much they earn today. With the new system though, that won’t happen.
What income does this concern, exactly?
This new taxation doesn’t apply to every type of revenue. Indeed, your company can either be subject to the Income Tax or to the Corporate Tax, and this new measure only matters for those subject to the income tax.
Though, even for companies subject to the corporate tax, this does matter for any salaries you might pay. As such, it’s worth knowing about this law, since it could change quite a few things for you!