Tax credit money to be paid out today
Around nine million households in France can expect a bank transfer from the tax authorities today as an advance instalment related to tax credits and reductions for ongoing expenses.
As we reported last week, the amounts will add up to 60% of the usual annual benefit of tax credits or reductions for a range of expenses, such as employing nannies or gardeners or making donations to charity.
Some €5.5billion is expected to be paid out in total today.
You will benefit if you were eligible for credits or reductions on your income tax bill for 2017, based on the declaration you made last year. However certain tax credits are not concerned, notably ones for eco-friendly home improvements or for investing in small businesses, which are considered occasional expenses, rather than likely to be regular.
The measures is aimed at avoiding cash-flow problems resulting from the new prélèvement à la source (PAS) at-source tax system which levies tax from people's bank accounts or French salaries and pensions on a monthly basis.
Most people will receive the money directly into their bank accounts while a minority who have not given their bank account details to the tax office will receive cheques in the post.
- If you had the same expenses in 2018 as in 2017, the 60% amount today will be followed up with the rest over the summer
- If you had new expenses in 2018 then you will get the benefit in full as a one-off payment in September once you have made your declaration of 2018’s income in May/June 2019
- If you had expenses in 2017 that you did not have in 2018, then you may have to refund some money in September due to having had an instalment for non-existent tax credits/reductions
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