French Income Tax Update: Nearly 10 Million Households Pay Extra in Fall 2023

2023-07-23 09:54:59

Nearly 10 million French households will have to pay additional income tax in the fall. The households concerned are those who had a withholding tax rate that was too low in 2022 compared to the amount that must be withheld. This measure should allow the tax administration to recover 21.7 billion euros.

Indeed, the latest figures from the Directorate General of Public Finance (DGFIP) indicate that 9.6 million French households will have to pay a balance of income tax in the fall. An online tax notice will be received by some affected households between July 26 and August 4, 2023, while others will receive a paper notice directly in their mailbox between July 24 and August 22.

The withholding tax rate for the taxpayers concerned was too low during the past year. The payment of these out-of-pocket payments should allow the tax authorities to recover an average of 2,259 euros per household concerned, i.e. a total of 21.7 billion euros in income tax. It should be recalled that the same operation was carried out during last fall, during which more than 10 million taxpayers had to pay a balance of tax.

In detail, as the declaration campaign for the year 2021 drew to a close, 10.7 million French taxpayers had to pay an additional tax assessed at 2,100 euros per tax household on average. It should be noted that households who will have to pay this balance in the fall will not have to do anything. The amount of the remainder to be paid will be mentioned directly in the mail, and this, over the period extending between July 24 and August 22.

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Some taxpayers will be reimbursed

On the other hand, some taxpayers will receive a payment from the Direction générale des finances publiques between July 24 and August 2. This regulation operation will benefit households which, unlike those mentioned above, had an excessively high withholding tax rate during 2022. For some, this will be due in particular to the drop in their income.

Moreover, the Directorate General of Public Finances (DGFIP) specified on its website that households eligible for a refund of tax reductions or credits may also be reimbursed. The number of French households that will be able to benefit from this refund during this year 2023 amounts to 15 million, for an overall amount estimated at around 13 billion euros.

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