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Trials held first before start of at-source tax
The election of President Macron has thrown into doubt the start date of the new ‘at source’ income tax system.
As we explain in our 2017 Connexion helpguide to French tax forms, at-source taxation is due to start in January 2018, however it now appears that it might be put off.
Mr Macron has referred to the change – which will notably involve employers taking tax off salaries each month – as a “good reform”, which “will be done”, but has now said that it may simply be “trialled” next year rather than put into place across the board. Meanwhile a spokesman for his party, En Marche! has said they will be carrying out an audit of the policy this month.
This clashes with information campaigns that have been run so far telling people to get ready for the new measures next year.
Former Budget minister Christian Eckert has said he thinks there may be political considerations behind this – notably that Mr Macron may want the impact of his own reforms, such as lower social charges, to be felt by employees before they have to get used to income tax being deducted every month.