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Is it true that the French Government is seriously considering a Pay As You Earn (PAYE) system similar to the UK where deductions for Income Tax will be made by the Employer every month as is currently the case with Social Security payments and paid by them to the Bureau des Impôts?

I have been living and working since mid April 2013 and have paid in full the Income Tax from then till 31 Dec 2013 and have been paying monthly direct debits based on this since Jan 2015 towards my 2014 Tax Bill, and also the Impôt d'Habitation and TV licence and am quite happy with that system. I can see however how this would be of great benefit to the French Exchequer's Cash-flow if it does come in.
 

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Moved this to a thread of its own because this is a big deal issue here and might generate some interesting discussion.

There has been talk about withholding income tax at the paycheck level for a LONG time - in part because it seems that France is one of the very few countries that doesn't do so these days.

But, like any big change here, there has been LOTS of discussion - at least if you listen to the call-in radio shows. Frankly, the main issue would be the "transition year" when you're still paying off last year's tax bill, and having this year's taxes withheld from your pay all at the same time. But after that, you're simply paying as you earn.

However, the big arguments seem to revolve around having to give your employer all this "personal" information so that they could properly withhold taxes. There are many ways around this objection, but I suspect most folks are just worried about the transition year.
Cheers,
Bev
 

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They are now very seriously looking at it and it's possible that it may start to be introduced in 2016. There are significant issues associated with the change, but they appear to be working through them.
 

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The one big thing that I've always figured must be the show stopper here is that, after the usual 25% or so of cotisations withheld from everyone's paychecks, having to take even another 5 to 10% or more is just going to rub noses in how much tax we all pay in total. (Not even counting taxe d'hab, VAT and whatever else there is.)

But there are lots of ways to accomplish the same thing. In the US, each employee only has to reveal to their employer their marital status and how many exemptions they believe themselves to be entitled to (basically how many dependents - but the number can be adjusted depending on whether or not both spouses work). In Germany, it was the employer's responsibility to know enough about the employee's situation so that they withheld "enough" to cover taxes on salary. And in some countries, if a taxpayer has only salary income, then they don't even have to file any sort of return or declaration at the end of the year.

I would be curious to know what options they are considering (though I can well imagine why they aren't being revealed just yet).
Cheers,
Bev
 
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