Income tax : deduction at source confirmed for the beginning of 2019

The tax at the source, a leading measure of the quinquennium Holland will be put in place in a little over a year.


On Monday, the minister of public Accounts has confirmed on his Twitter account that the deduction at source of income tax would come into force on January 1, 2019, with a few changes designed to “lighten” the rules of management for the collectors. The reform and its new terms and conditions will be incorporated in the draft amended finance law (PLFR), which will be presented this Wednesday by the council of ministers and discussed at the end of November in Parliament, says Bercy in a statement. The reform of the tax at source, tax measure lighthouse of the end of the quinquennium Holland, originally scheduled to enter into force in early 2018. It worries the employers, who see it as a series of new business constraints. “The concerns raised by this project were not of principle but a practical,” believes the minister of the Action and of the public Accounts Gérald Darmanin in the press release. According to him, the new rules will be implemented ” in a secure manner “.

The #prélèvementàlasource of the tax on income shall enter into force on January 1, 2019, by means of a simplified arrangement, and a cover reinforced for individuals and collectors !

— Gérald DARMANIN (@GDarmanin) November 13, 2017

A lower cost than expected

The government had announced at the beginning of June, a postponement of the reform, the time to order a series of audits on the “robustness” of the new device and on the “load induced” for collectors, especially the bosses. These reports have confirmed that the transition to the removal at the source would have a cost for companies, but lower than expected : it should be between 310 and 420 million euros, instead of 1.2 billion euros previously mentioned. According to Bercy, more than 70 % of this cost is related to the implementation of the new payroll software, training of users and the time spent to make the pedagogy from the employees. However, these costs can be mitigated with a series of simplification measures, we believe.

The government has planned a number of changes compared to the initial project, including an easing of sanctions to the collectors in case of failure “declarative” – the minimum fine from 500 to 250 euros. It also plans to enable collectors to recover the rate of custom of the taxpayers before the first payment of the income, to apply it immediately. “In fact, due to the time necessary to recover the rate of personalized to a user, the collector was obliged to apply a neutral rate the first, or even the first two months of compensation “, which could “lead to questions from the collectors,” stresses Bercy. Side taxpayers, finally, it provides for the establishment of a single regime of penalties for the different situations under this case.

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