Ask Amanda
by Amanda Johnson
H
i Amanda, I expect to be getting a reminder to file my French tax return soon. Are there any changes in French tax legislation which I may not be aware of? This is a topic which arises at this time of the year, when we are preparing for completing personal tax returns and yes, there have been changes within the French tax system. The main changes that have been announced in the French Budget for 2020 is the reduction in income tax rates for income received in the 2020 calendar year. The change occurs for income received in 2020 where the tax rate for the entry level for paying tax reduces from 14% to 11%. The band levels have reduced also, thus those on lower incomes will gain the most from these changes. The rates of income tax of the barème scale for income received in 2019 remain the same, but the barème scale for 2020 is as follows: Income Tax Rate Up to 9,964€ 0% 9,965€ to 25,405€ 11% 25,405€ to 72,643€ 30% 72,643€ to 156,244€ 41% Over 156,244€ 45% Local Residence Tax (Taxe d’habitation) Continuing from previous budgets, it is planned that the tax will be completely abolished on principal homes for all households by 2023. Second homeowners will continue to remain liable for the tax. The television licence fee (contribution à audio-visual public) that is collected with the taxe d’habitation will continue to be payable by non-exempt households. If you send me an email to my contact details, I will send you Spectrum’s guide on French tax changes and planning opportunities for 2020. Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below and I will be glad to help you. We do not charge for reviews, reports or recommendations that we provide. Amanda Johnson Tel: 05 49 98 97 46 or 06 73 27 25 43 E-mail: amanda.johnson@spectrum-ifa.com www.spectrum-ifa.com/amanda-johnson
The Spectrum IFA Group is fully regulated to offer financial advice in France and we do not charge for reviews, reports or recommendations we provide.
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