Withdrawal at source: last adjustments before the big jump

Gérald Darmanin continues to monitor the implementation of the withholding tax such as milk on fire. And so far, so good. This is certainly the message that wanted to pbad the Minister of Action and Public Accounts, at a press conference held Tuesday afternoon in Bercy.

The Directorate General of Public Finance (DGFIP) must still work hard to avoid unpleasant surprises. In particular, we must ensure that all companies are ready to make the leap in January. To date, 37,000 very small businesses have not yet adopted the "DSN", the system that allows the tax administration to communicate directly with them. They were 55,000 two months ago. This may be the case of companies that have only one employee, or not at all certain months.

Those who are still not ready in January will not be punished, except in case of proven fraud, for example if they try to use the amount of tax deducted on wages for something else. They can continue to enter the device after January. Like all companies with less than 20 employees, they can opt for the TESE. Urssaf will then calculate in their place the amount to be deducted from the income and will then send the company the amount of the salary to be paid to each employee after tax. In the extremely rare cases where nothing would have been done, the employee will be deducted at the time of the regularization of the tax in September, on the basis of the income declared in the spring of 2018.

The government is also particularly concerned with the self-employed, including the doctors, who seem to be late. A communication campaign will take place in the coming weeks to inform them of what they need to do.

"The ride of the kids"

A "significant awareness work" also remains to be undertaken in small municipalities, particularly in Mayotte. "The departmental directors of public finances are responsible for making the rounds of meals," reminding city halls to return the data of their officials and contractors in the dedicated system of administration, says Gerald Darmanin. According to him, the problems encountered at the MSA, the agricultural social security, have been solved. The military payroll test, which was deemed very difficult to manage, would also have worked very well.

The case of households that did not report income

Remains the case of households that did not file a tax return in 2017. Normally, it is mandatory, even when they are not taxable. This is particularly what allows the tax administration to grant them the reduction of the housing tax, for example, or the energy check, when their level of income does not exceed the fixed ceilings. If they work in 2019, these people (young people who leave the tax home of their parent or return from abroad, for example) will be applied the neutral rate, that of a single person without children, during the transition to the tax at the source on January 1st. They will therefore be interested in connecting with the tax services so that the tax authorities can establish their custom rate applicable the following month, if they do not want to pay too much tax compared to the real situation. Overpayment by the tax authorities during the period when the neutral rate was applied to them will then be refunded within two months. For those who do not show up for taxes, they will be reimbursed in September, on the basis of their 2018 tax return of April 2019.

How to adjust the rate in case of retirement

The same applies to retirees who have retired in 2018 or will retire in 2019. As of January 2, they will be able to apply online for an adjustment of their rate to their new income. Without doing anything, their rate calculated on the year 2017 will be deducted from a lower income thanks to the withholding tax, which will reduce their tax. But they will also be able to ask the tax authorities to lower the rate itself, based on their 2019 projected income. In this case, the administration will send this new rate to their pension fund (s). And will refund under 2 months the overpayment in January. Any taxpayer will be able to announce a change of family situation online as of January 2nd. The rate will then be adapted as of the following month, for example in case of birth. Very short deadlines that denies the trade union Solidaires des finances publiques. He denounced the lack of resources of the administration to prepare for the disruption of withholding tax.

A letter from Darmanin sent end of December

So that all the French are well informed, Gerald Darmanin plans to write them a letter or an email at the end of December to remind them of the introduction of the withholding tax on January 1st and the availability of a contact number with the tax administration, which will then be made free of charge. Those who make recurring tax credits (child care, home badistance, rental investments, etc.) will receive a special letter reminding them that they will automatically receive 60% of the amount of these tax credits from the January 15th. No taxpayer benefiting from tax credits will therefore cash advance to the state, hammered Gerald Darmanin. The balance of the tax credit to which they are entitled will be returned in September. In this letter, the Minister will warn them on an important point: if they do not renew their tax credits, then the amount paid by the administration in January, calculated from their 2017 tax returns, will have to be refunded to the taxpayer. tax in September.

For employees on very short contracts, from one to two months (or less than one month), the neutral rate will be applied, because Bercy will not have time to communicate the personalized rate to the employer. But these employees should not lose, says the Minister of Public Accounts, because it is planned to apply a deduction of half a smic the income they will earn to be sure they do not pay every month too much. taxes in relation to what they owe.

"If there is a shock, it will be doubly positive"

In a context of fiscal loathing, can the withholding tax cause a negative psychological shock, unfavorable to consumption? Gérald Darmanin does not believe it at all. "If there is a shock, it will be doubly positive. January 15, when (taxpayers) will receive 60% of tax credits and the 17th of the month when they will see that they will not be collected before the end of the month, "predicts the Minister.

Read also our interview with Gerald Darmanin: "The psychological shock of withholding tax will be positive"