Avis d’ Impot

Understanding your tax return reply form ‘Avis D’Impot’   For those that completed and filed their tax returns in May 2019 for the tax year 2018, you will now be receiving the responses from the French Tax authorities.   This will list the income you receive, and deduct any allowances leaving you with a net figure to pay if required.   This year has also seen the ‘PAS’ or Prélèvement à la source where the authorities are starting to implement a ‘pay as you earn’ system.   French tax is calculated on a parts system so in this example you can see that the ‘nombre de parts’ is 2, or 2 adults. If you have children, they also have ‘parts’ to contribute which differs according to the number of children. Further allowances are available for those who are disabled or over 65 so check this is correct before reading further.   A brief explanation is as follows:

  • This shows income earned by each individual and this can be salary, pension or rental income.
  • This corresponds to ‘PFU’ known as flat tax or Prélèvement Forfaitaire Unique which is tax payable on all investment income;
  • This is the gross amount of tax before any allowances are input
  • These are the reductions netting down your taxable income.
  • Revenue fiscal de reference. This is a measure of the household’s resources and makes it possible to obtain, for example, social benefits or certain tax exemptions for those over 65.
  • This shows a person who has a régime micro enterprise where tax is payable quarterly on declarations.

If you think there has been an error made on your tax return you normally have until mid December to make a correction.  Generally tax experts will tell you to pay the tax owed first and then ask for a correction rather than run the risk of a fine for non payment. If you have any doubts whatsoever, then you should consult a tax professional.   Jennie Poate is a qualified and authorised financial adviser, working for Beacon Global Wealth Management. She is happy to answer any queries you may have by telephone or email and she and her team would be delighted to help you with any pension or investment queries.   Please note, we are not tax advisors and the above is just a sample tax return for illustration purposes only. We cannot be held responsible for any person who acts upon the information provided in this article.

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