In 2023, the withholding tax will undergo some changes. Income tax might therefore be different.
The calculation of income tax regarding to change its mode of operation? According to Elisabeth Borne, it is a safe bet that the withholding tax knows some changes in the next few years.
All regarding income tax
Remember. On January 1, 2019, the government put in place the withholding tax. In April, the French will have to settle the painful income tax for the year 2022.
But did you know that were certain expenses deductible? Indeed, be aware that when you declare your taxes, you can deduct costs.
These are called deductible expenses. These are the loads you can subtract from your overall income before calculating income tax. Of course, not all expenses are deductible.
So there is a list carried out by the government and which is defined by law. Be aware, however, that you have several things to declare in your taxes.
You must declare all of your remuneration: wages, land and furniture income, agricultural profits, etc. With the withholding tax, the process is therefore intended to be simplified.
Your expenses exempt from income tax are therefore alimony, elderly care expenses, etc. There are also tax deductions if you are hosting someone over 65or a disabled person.
Elisabeth Borne changes the rules
Guest of C à vous this Monday, March 6, 2023, Elisabeth Borne confided that the withholding tax will undergo some changes in 2023. She revealed that a major change was going to apply.
Indeed, according to him, the rate will be individualized by default. As a reminder, the withholding tax consists of deducting directly from income, each month, the amount of income tax payable.
Employee or retiree, this tax collected directly by the employer or the pension fund is unavoidable. This levy was to make it possible to collect household tax in almost real time, to spread the payment over 12 months. Or to remove the one-year lag.
Currently, members of the couple are taxed at the same rate. But, be aware that it is already possible to opt for an individualized rate “corresponding to individual income”says Objeko.
The total amount of tax paid by the couple will of course remain unchanged. Well know that within a few years, income tax will be revamped.
A change for 2025
Indeed, the individualized rate will be automatically applied according to Elisabeth Borne. A change “implemented in 2025”, specify the spokespersons of Elisabeth Borne, to Actus.fr.
The Prime Minister therefore wishes to reverse the logic. By allowing withholding tax to be individualized, “taking into account the income of each”.
Concretely, this means that the person with the highest salary will have a higher tax rate. It helps to have greater economic autonomy for women.
“With the withholding tax, you have a tax rate for the household which by default is applied to the salary of the gentleman and the salary of his wife. It can happen in a couple that the man has a higher income and therefore a high tax rate. It is this same rate that will therefore be found on the woman’s salary “she said on the set of C to you. Here’s a good idea!
