{"id":155,"date":"2020-11-04T16:19:22","date_gmt":"2020-11-04T16:19:22","guid":{"rendered":"https:\/\/www.cf-international-ecovis.com\/uk\/?p=155"},"modified":"2020-11-04T16:19:22","modified_gmt":"2020-11-04T16:19:22","slug":"french-tax-update-whats-new-in-2019-january-2019","status":"publish","type":"post","link":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/","title":{"rendered":"FRENCH TAX UPDATE – WHAT\u2019S NEW IN 2019? – January 2019"},"content":{"rendered":"

PAYE \u2013 Pr\u00e9l\u00e8vement \u00e0 la source<\/em>\u00a0now in place<\/h2>\n

The first tax payments via the new system will be made in January 2019, either by direct debit or withheld\u00a0at source from French salaries\/pensions. No action should be required from the taxpayers if all is in\u00a0order.<\/p>\n

Taxpayers should receive a payment in January 2019 equaling 60% of their previous year\u2019s tax credits\u00a0(re household employee expenses, charity gifts etc. made in 2017). The tax credit calculated on 2018\u00a0eligible expenditure (to be declared in May\/June 2019) will be paid as usual in September 2019 following\u00a0the submission of a 2018 income tax return minus the advance payment.<\/p>\n

The PAYE tax rates and\/or payments on account will be automatically adjusted in September 2019\u00a0following the submission of a 2018 income declaration in May\/June 2019.<\/p>\n

Alternatively, taxpayers can request an increase or decrease in their payments on account if they are\u00a0certain that there will be a significant change in their income between 2017 (the year of reference) and\u00a02019 (the current year).<\/p>\n

All payments made in 2019 will be credited towards the 2019 income tax liability, which will be regularised\u00a0in September 2020 following the submission of a 2019 income declaration.<\/p>\n

2018 income falling within the PAYE system will benefit from a tax credit (CIMR) cancelling double\u00a0payment of tax during the year of transition (on both 2019 and 2018 income). Regular pensions and\u00a0salaries received in 2018 should therefore be totally tax-free. However, for self-employed income\u00a0(including g\u00eete income), the CIMR will be calculated on the best of the previous three years instead of\u00a02018 income if 2018 happens to be the best year. A supplementary tax credit will be granted next year if\u00a02019 income is superior or if the increase in 2018 income can be justified.<\/p>\n

For an unfurnished rental property, it should be noted that 2019 repair and maintenance expenses will\u00a0only be tax deductible for the average of expenses made in 2018 and 2019 (thus if a landlord spent zero\u00a0in 2018, only 50% of his 2019 expenses will be deductible). Landlords who made no repair works in 2018\u00a0may prefer to delay repairs until 2020 when they will be fully tax deductible again.<\/p>\n

Flat-tax on investment income and capital gains<\/h2>\n

The new 30% flat tax on investment income and capital gains (which remain outside the pr\u00e9l\u00e8vement \u00e0 la\u00a0source system) has been in place since 1 January 2018. The flat tax is comprised of income tax of\u00a012.8% and social contributions of 17.2%. The rate of social contributions should be reduced to 7.5% for\u00a0taxpayers registered for healthcare in another EU\/EEA country (see below).<\/p>\n

Each year the taxpayer can choose whether or not the flat-tax is advantageous, compared to the\u00a0calculation of income tax under the progressive scale and other related rules (re abatements and\u00a0deductible CSG). This choice will be made via their income tax return and will apply to all of their\u00a0investment income and capital gains for that given year.<\/p>\n

The flat tax is payable at source on all dividend and interest income for households with a 2017\u00a0worldwide income above \u20ac 50,000 (single person)\/\u20ac 75,000 (couple) concerning dividends and \u20ac 25,000\u00a0(single person)\/\u20ac 50,000 (couple) concerning interest. It is normally retained at source by the financial\u00a0institution\/company paying the dividend. However, for foreign-source income in particular, it may be up to\u00a0the taxpayer to declare and pay the flat tax via the declaration form n\u00b0 2778. This declaration must be\u00a0submitted before the 15th of the month following receipt of income.<\/p>\n

Social contributions for residents registered for healthcare in another EU\/EEA country<\/h2>\n

Following the \u201cDu Ruyter\u201d ruling as well as the second wave of social contribution reclaims, the French\u00a0government has decided to reform the social contributions levied on taxpayers registered for healthcare\u00a0in another EU\/EEA member state.<\/p>\n

This will concern residents accessing French healthcare through EU regulations after having successfully\u00a0submitted a S1\/E121 form.<\/p>\n

Social contributions on property, investment income and capital gains will fall from 17.2% to 7.5%. This\u00a0new 7.5% contribution is known as the pr\u00e9l\u00e8vement de solidarit\u00e9. This change concerns social\u00a0contributions payable in 2019 by retention at source or via a 2019 assessment (on 2018 income).<\/p>\n

Ongoing reduction of taxe d\u2019habitation<\/h2>\n

Individuals with 2018 income below \u20ac 27,000 and couples below \u20ac 43,000 can expect to receive a 65%\u00a0reduction in their 2019 taxe d\u2019habitation assessment payable in November 2019. This concerns only the\u00a0main residence and the TV licence remains payable.<\/p>\n

The government has pledged to exempt 80% of taxpayers from taxe d\u2019habitation by 2020.<\/p>\n

Tax credits for energy efficient home improvements (CITE)<\/h2>\n

The CITE tax credit for energy saving improvement to your main residence will continue to apply for\u00a0expenses paid in 2019. It is expected to be discontinued and replaced by subsidies subject to income\u00a0limits.<\/p>\n

The replacement of single glazed windows with energy efficient windows now qualifies for a reduced 15%\u00a0tax credit.<\/p>\n

Expenditure in 2019 on other home improvements will give rise to a 30% tax credit in the same way as\u00a0previous years.<\/p>\n

Exemption for capital gains on property by former French residents<\/h2>\n

Capital gains made by non-residents selling their former main residence in France after their departure\u00a0but before the 31 December of the following year are exempt, provided the house was not rented out.<\/p>\n

Example: A person leaves France permanently in May 2019. The sale of their French home (former\u00a0principle residence) is exempt from capital gains tax as long as the sale is made before 31 December\u00a02020.<\/p>\n

If the sale is made after that date, a capital gain exemption of \u20ac 150,000 (\u20ac 300,000 for a property jointly\u00a0held by a couple) is available for EU\/EEA nationals, provided that the taxpayer lived permanently in\u00a0France for at least two consecutive years during the period of ownership. The exemption is not new and\u00a0can be claimed up until 31 December of the tenth year following departure (instead of five previously).<\/p>\n","protected":false},"excerpt":{"rendered":"

PAYE \u2013 Pr\u00e9l\u00e8vement \u00e0 la source\u00a0now in place The first tax payments via the new system will be made in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","hentry","category-information-sheets"],"acf":[],"yoast_head":"\nFRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK\" \/>\n<meta property=\"og:description\" content=\"PAYE \u2013 Pr\u00e9l\u00e8vement \u00e0 la source\u00a0now in place The first tax payments via the new system will be made in […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/\" \/>\n<meta property=\"og:site_name\" content=\"CF International UK\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-04T16:19:22+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#\\\/schema\\\/person\\\/1fc7f9eee119e8d9c79d8def3dec7b7b\"},\"headline\":\"FRENCH TAX UPDATE – WHAT\u2019S NEW IN 2019? – January 2019\",\"datePublished\":\"2020-11-04T16:19:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/\"},\"wordCount\":946,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#organization\"},\"articleSection\":[\"Information sheets\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/\",\"url\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/\",\"name\":\"FRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#website\"},\"datePublished\":\"2020-11-04T16:19:22+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/french-tax-update-whats-new-in-2019-january-2019\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Cabinet Henderson\",\"item\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Information sheets\",\"item\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/information-sheets\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"FRENCH TAX UPDATE – WHAT\u2019S NEW IN 2019? – January 2019\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#website\",\"url\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/\",\"name\":\"CF International UK\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#organization\",\"name\":\"Cabinet Henderson\",\"url\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/11\\\/logo-henderson.png\",\"contentUrl\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/11\\\/logo-henderson.png\",\"width\":754,\"height\":97,\"caption\":\"Cabinet Henderson\"},\"image\":{\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.cf-international-ecovis.com\\\/uk\\\/#\\\/schema\\\/person\\\/1fc7f9eee119e8d9c79d8def3dec7b7b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g\",\"caption\":\"admin\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/","og_locale":"en_GB","og_type":"article","og_title":"FRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK","og_description":"PAYE \u2013 Pr\u00e9l\u00e8vement \u00e0 la source\u00a0now in place The first tax payments via the new system will be made in […]","og_url":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/","og_site_name":"CF International UK","article_published_time":"2020-11-04T16:19:22+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Estimated reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/#article","isPartOf":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/"},"author":{"name":"admin","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#\/schema\/person\/1fc7f9eee119e8d9c79d8def3dec7b7b"},"headline":"FRENCH TAX UPDATE – WHAT\u2019S NEW IN 2019? – January 2019","datePublished":"2020-11-04T16:19:22+00:00","mainEntityOfPage":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/"},"wordCount":946,"commentCount":1,"publisher":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#organization"},"articleSection":["Information sheets"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/","url":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/","name":"FRENCH TAX UPDATE - WHAT\u2019S NEW IN 2019? - January 2019 - CF International UK","isPartOf":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#website"},"datePublished":"2020-11-04T16:19:22+00:00","breadcrumb":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/french-tax-update-whats-new-in-2019-january-2019\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Cabinet Henderson","item":"https:\/\/www.cf-international-ecovis.com\/uk\/"},{"@type":"ListItem","position":2,"name":"Information sheets","item":"https:\/\/www.cf-international-ecovis.com\/uk\/information-sheets\/"},{"@type":"ListItem","position":3,"name":"FRENCH TAX UPDATE – WHAT\u2019S NEW IN 2019? – January 2019"}]},{"@type":"WebSite","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#website","url":"https:\/\/www.cf-international-ecovis.com\/uk\/","name":"CF International UK","description":"","publisher":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.cf-international-ecovis.com\/uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#organization","name":"Cabinet Henderson","url":"https:\/\/www.cf-international-ecovis.com\/uk\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#\/schema\/logo\/image\/","url":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/11\/logo-henderson.png","contentUrl":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/11\/logo-henderson.png","width":754,"height":97,"caption":"Cabinet Henderson"},"image":{"@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.cf-international-ecovis.com\/uk\/#\/schema\/person\/1fc7f9eee119e8d9c79d8def3dec7b7b","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/secure.gravatar.com\/avatar\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/15d048613a5a0c71a72adcae50d7a47fbadc002684ef37851d7d1ecf42335948?s=96&d=mm&r=g","caption":"admin"}}]}},"_links":{"self":[{"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/posts\/155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/comments?post=155"}],"version-history":[{"count":1,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/posts\/155\/revisions"}],"predecessor-version":[{"id":156,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/posts\/155\/revisions\/156"}],"wp:attachment":[{"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/media?parent=155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/categories?post=155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cf-international-ecovis.com\/uk\/wp-json\/wp\/v2\/tags?post=155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}