As the withholding tax just completed its launch week, Gilles Gauthier, the director of public finances for the Alpes-Maritimes, held a press conference to take stock, reassure, and inform citizens who still have questions.
The period from January 2 to January 8 was crucial for the government and the tax administration. The launch of the withholding tax has sparked lively and sometimes heated debates for some time. In the face of many misunderstandings or apprehensions, Gilles Gauthier delivers a reassuring message. “It is a heavy operation to manage, but since the launch, we have not had any IT issues,” he explains.
As a reminder, here is a brief explanation of the withholding tax:
- As an employee, an additional line will be added to your payslip. It corresponds to the withholding tax on your income tax. The amount you usually receive will therefore decrease because your employer will withhold part of it for the tax administration.
Pensions, income of the self-employed, recurring property income, and certain benefits are also affected. However, this is not the case for investment income, real estate capital gains, capital gains from the sale of securities, or tangible movable property.
The calculation of the tax does not change, only the way it is collected. The income tax for 2018 will be erased through a tax credit to avoid double taxation.
On January 15, 2019, the advance payment of 60% will be made. 8.8 million households will benefit from an advance on tax reductions and credits in the form of a transfer. On average, the amount of this advance is 627 euros.
If doubts or questions remain, various means are available for you to get information. A free hotline has been set up specifically for the withholding tax, with already 818,050 calls. 1,400 operators are mobilized to answer your questions. It is also possible to visit the tax administration’s website impots.gouv and submit a request via messaging.
