Withholding tax at source: who has an interest in choosing the neutral rate?

news">

You can opt for neutral rate to keep your income confidential. (© DR)

Most of your income is subject each month to withholding tax (PAS) at the rate specific to your tax household calculated by the tax authorities. But in certain situations, you can choose another rate at any time by requesting that a neutral rate or an individualized rate be applied to you.

Your wages or retirement pensions are deducted every month from a source deduction according to a personalized rate determined by the tax authorities according to the last income declared by your tax household.

If it does not suit you, you can opt for a neutral rate or an individualized rate if you wish. Such an option has no impact on your final tax but allows you to better manage your cash flow. It can be exercised or terminated at any time. To your calculators!

Neutral rate to keep your income confidential

If you do nothing, the personalized rate calculated by the tax authorities is automatically applied. If you are an employee and do not want your employer to know the tax rate for your tax household because it is likely to reveal that you have additional income (for example, you are single and supplement your modest salary by renting several properties real estate) or that your spouse earns a very good living (you are a teacher and your spouse is a financial director), you can then ask the tax authorities that this rate not be communicated to him. Your employer will then apply a neutral rate on the basis of a monthly salary grid.

For example, for an employee domiciled in mainland France with a net monthly salary of 3,800 euros, i.e. in the bracket between 3,543 euros and 4,134

Read more on LeRevenu.com

Leave a Replay