The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...
Aug. 3—The electronic system used for payroll management and social tax compliance also would be used for compliance with the new personal income tax monthly withholding requirements, the French ministries of finance and budget said Aug. 2.
The income tax withholding proposal is to be part of the 2017 Finance Bill and would take effect Jan. 1, 2018, the ministries said.
With income tax withholding to apply to taxpayers' earned income for 2018, employers would be able to use the same system underlying France's new declaration sociale nominative (DSN) system that allows companies to electronically transmit payroll data and comply with social taxes via payroll software programs or through third-party payroll providers or certified accountants, the government said.
The DSN already has allowed employers to consolidate about 20 existing payroll reporting obligations, the government said.
France's income tax collection system creates difficulties for certain taxpayers because of a year-long time lag from when income is earned to when it is taxed, the ministries said.
The new withholding plan would modernize French tax collection by adapting to a person's job changes and life events without changing calculation methods, the ministries said. In particular, the system would allow for taxing income as soon as it is earned, and the DSN system would help with that, the government said.
France has been gradually implementing the system to replace its notoriously onerous reporting requirements for dozens of social welfare, health insurance, pension and other related public and private agencies that collect social welfare taxes.
France's 13,000 largest companies were first required to use the DSN system for reporting social welfare data in May 2015. At least 460,000 smaller companies, totaling more than 13 million employees, implemented the system in advance of a legal requirement, the government said.
To contact the reporter on this story: Rick Mitchell in Paris at email@example.comTo contact the editor responsible for this story: Michael Trimarchi at firstname.lastname@example.org.
The government statement about the planned withholding at source requirements, is available in French at: http://www.economie.gouv.fr/dispositif-prelevement-a-source-limpot-sur-revenu
Information about the DSN, in French, is at http://www.dsn-info.fr/.
More information on payroll issues in France is available in the France country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)