Gérald Darmanin continues to monitor the introduction of withholding tax, such as fireproof milk. And so far so good. This, of course, is a statement that he wanted to convey to the minister and state accounts at the press conference held on Tuesday afternoon at Bercy.
DG Finance still needs to work diligently to avoid unpleasant surprises. In particular, we must ensure that all companies are ready to dance in January. So far, 37,000 very small businesses have not yet adopted DSN, a system that allows the tax administration to communicate directly with them. They were two months ahead of 55,000. This can happen for companies that have only one employee, or they are not certain months.
Those who are not yet ready in January will not be penalized except in cases of fraud, for example, if they try to use the amount of other tax paid on wages. They can continue to enter the device after January. Like all companies with fewer than 20 employees, they can choose TESE. Subsequently, Urssaf calculates the amount to be deducted from income and then sends the company the amount of salary payable to each employee after payment of the tax. In very rare cases, when nothing is done, the employee will be deducted from the tax clearance in September, based on the income declared in the spring of 2018.
The government also cares about self-employed persons, including doctors who seem to be late. In the coming weeks, a communication campaign will be held to inform them of what they need to do.
In small municipalities, in particular in Mayotte, "a significant awareness-raising effort" is also required. "The directors of the public finance departments are responsible for the order of the dishes," recall Gerald Darmanin, recalling the city hall to return the data of their officials and contractors in a special administrative system. According to him, the problems faced by the MSA, the social security of agriculture, have been resolved. Also, the military wage test, which was considered very difficult to manage, would also have worked very well.
In the case of households who did not report income
There remains a household that did not file a tax return in 2017. It is usually compulsory, even if it is not taxable. In particular, it allows the tax administration to grant them a reduction in housing tax, for example, or an energy check if their income level does not exceed the maximum amounts. If they work in 2019, these people (young people leaving their parents' homes or returning from abroad) will apply a neutral rate for one person without children during the transition to a tax on January 1st. They will therefore be interested in contacting the tax authorities so that the tax authorities can set the next month's rate if they do not want to pay too much tax compared to the actual situation. Overpayments made by the tax authority at the time they were applied to a neutral rate will be repaid within two months. Those who do not show taxes will be refunded in September on the basis of the tax return of 2018 2018.
How to adjust the rate in case of retirement
The same applies to pensioners who retired in 2018 or retire in 2019. From January 2, they will be able to apply online to adjust their rate for their new income. If you do nothing, the rate calculated in 2017 will be deducted from the lower income, due to the withholding tax, which will reduce their taxes. But they will also be able to ask the tax authorities to reduce the rate based on their projected income in 2019. In this case, the administration sends this new rate to the pension fund (s). And until January, overtime will be repaid for up to 2 months. Any taxpayer will be able to announce the change of family status on-line from January 2. After that, the rate will be adjusted next month, for example, in case of birth. Very short deadlines for the Solidaires des finances publiques. He denies the lack of administrative resources to prepare for the withholding tax.
The Darmanian letter is sent by the end of December
Gerald Darmanin plans to write a letter or e-mail in late December to remind them of the introduction of the income tax on January 1 and the availability of a contact number for the tax administration, which will then be paid free of charge. Those who make repeated tax credits (childcare, home help, rent payments, etc.) will receive a special letter reminding them that they will automatically receive 60% of these tax credits from January 15th. Therefore, taxpayers who benefit from tax credits will receive advance payments to the state, Gerald Darmanin puts it. The tax credit to which they are entitled will be returned in September. In this letter, the minister warns them of an important issue: if they do not extend tax breaks, the amount paid by the administration in January, calculated from their tax returns for 2017, will have to be repaid to the taxpayer. tax in September.
For employees with very short contracts, from one to two months (or less than one month), a neutral rate will be applied, as Bercy will not have time to announce the personalized rate to the employer. But these employees should not be losing, says the Minister of Public Finance, because it is planned to apply partly to reducing the income they earn to make sure they do not pay too much every month. taxes in relation to what they owe.
"If there is a shock, it will be twice as positive"
Can a tax deduction tax result in a negative psychological shock that is unfavorable to consumption? Gérald Darmanin is unlikely to believe it. "If there is a shock, it will be twice as positive. On January 15, when (taxpayers) will receive 60% tax rebates and the 17th date of the month when they will see that they will not be collected before the end of the month," the minister predicts.
Read our interview with Gerald Darmanin: "The psychological impact of forced tax will be positive"