IN ONE GRAPHIC – The monthly payment of the tax is sometimes presented as an alternative to the withholding tax. Yet the system is not unanimous.
| 31.08.2018 at 18:08
31.08.2018 at 18:15
The government is reluctant to postpone the reform of the income tax withholding, scheduled for 2019, which is criticized from all sides: businesses, who do not want to have to manage the tax; the opposition who fears a gas plant; taxpayers who do not understand the benefits of the system …
A system already exists to smooth the payment of income tax: the monthly payment. But unlike withholding tax, it only takes 10 months and not 12, and remains indexed to the previous year's income.
This possibility, which also exists for local taxes, is however not popular with the French. It is even declining: more than 70% of households used it in 2012, compared to only 58% in 2017.
Withdrawal at source: the four risks that make the executive hesitate