Income Tax Refunds and Payments 2024
28th Sept 2024
Income tax reconciliations for millions of households began this month.
Although there is tax deduction at source for French salaries, pensions and investment income, for other income and for most international owners the system operates by 'on-account' payments during the year.
These payments are made each month between January and October, corresponding on each occasion to one-tenth of tax paid in the previous year. Quarterly payments are also possible. The same approach can be taken with the local rates.
Although it is possible to adjust these tax payments during the year to reflect changes in income or family circumstances, many households choose not to do so.
As a result, each autumn millions who underpaid income tax will be required to make up the shortfall. Those who paid too much will already have received a refund in the summer.
If the amount owned is less than €300 then the it is deducted automatically as a one-off payment from your bank account, which this year occurred on 26th September.
If the sum is greater, the balance will be recovered in up to 4 monthly payments. The dates this year are 25th October, 25th November, and 27th December. The amounts to be paid are given on your tax notice (avis d’imposition).
In the case of difficulties to pay, it is possible to ask your tax office for a longer period of payment. Interest is charged. You apply on-line from your tax office account. Where there has been a change in circumstances a favourable decision is normally granted.
If there has been a substantial change in circumstances in the year, and you wish to change your monthly on-account payment, you simply need to go to your on-line account with the tax office and change the amount at 'Gérer mon prélèvement à la source'. If you are uncertain, you can provide details of any material changes to the tax office, and they will make the change.
If you seek professional advice concerning anything in this article contact our Property/Tax Clinic and one of our advisors will get back to you.