Millions of people living in France stand to benefit from recently announced tax reductions in 2017 and with a Presidential Election just around the corner next spring, the aim is to help single person households, couples and families with children. See below to determine whether you could benefit.
Income tax reduction of 20% for 5 million households
Around 5 million households could benefit from a 20% tax reduction, estimated to be worth 200€ on average and based on 2016 incomes. The income earned limit is 18,500€ for a single person or a widow – that’s around 1,700€ a month. For couples, the ceiling is 37,000€. However it is possible that some people earning slightly more than these limits could receive a partial tax reduction.
Introduction of tax deduction at source in 2018
From 2018 the Government will be changing the way it collects tax by deducting at source with employers sending the tax deductible direct to the state as opposed to completing an annual tax return each autumn. Those households who do not pay tax and earn less than 25,000€ will not be affected by this change.
Increase in the TV license fee in 2017
Watching TV in France will be more expensive next year… but only by 2€. The changes have been introduced to raise money for public sector broadcasting and will increase to 139€.
Extension of the Home Care Tax Credit to all Retirees
Finally, good news if you’re retired and need to access home care services. From 1 January 2017 the Government will apply a 50% tax credit in return for the employment of an employee at home. Previously this benefit was available only for those working or unemployed but has now been extended to retired persons, including those who do not pay tax.
Please give the team at Fiscaly a call on +33 (0)9 81 09 00 15 or visit our website http://www.fiscaly.fr/ if you would like to know more about how we can help take away the headache of tax and administration.