If you receive a French based regular income such as salary or pension, PAYE (pay as you earn) a tax payment at source is to be introduced, the tax authorities will inform your employer or pension payer of the nominal income tax to apply, and the payable tax will be deducted at source. This will not be deducted on overseas incomes which are still declarable on your tax return.
Tax stage payments are to change from twice a year to monthly, the last page of this year’s tax advice (for 2017 incomes) shows the calculation and the amount of monthly tax to pay from January 2019. It will still be necessary to submit a 2018 “Declaration de Revenus” in 2019, as this registration of the tax return will regularise the tax due and considers any tax made by stage-payments or deducted at source on French based incomes.
The tax authorities are asking you to register your bank account details with them, so your monthly stage payments can be deducted by direct-debit.
Tax will not be deducted at source on French property income, this must be declared on your 2018 Declaration de Revenus.
From January 2019, income from savings such as interest and dividends will be taxed at a flat rate of 30% (consisting of 12.8% income tax and 17.2% social tax), French banks will deduct this at source, but in certain circumstances it is possible to opt out of the Income Tax deduction (but not out of the Social Tax) by contacting your bank. If you have not already heard from your bank, then contact them. Please note, interest received from overseas bank accounts and savings (such as a UK ISA) must be declared on your French tax return.
As an alternative, there are tax free savings accounts available in the French banks such as the Livret A, and tax-efficient investment vehicles such as the Assurance Vie, if you want details on the Assurance Vie, then contact one of our Advisers.
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