Gerald Darmanin continues to monitor the implementation of tax deduction, such as milk in flames. So far, so good. It is certainly the message that the Minister of Labor and Public Accounts wanted to go to, at a press conference held on Tuesday afternoon in Bercy.
The Directorate General for Public Finances (DGFIP) must continue to work to avoid unpleasant surprises. In particular, we must ensure that all companies are ready to make a jump in January. To date, 37,000 very small companies have not yet adopted "DSN", a system that allows the tax administration to communicate directly with them. There were 55,000 two months ago. This can be the case with companies that have only one employee, or not in certain months.
Those who are not yet ready in January will not be punished, unless proven fraud, for example, if they try to use the amount of wage tax for something else. They can continue to enter the device after January. Like all companies with less than 20 employees, they can opt for TESE. Urssaf will then calculate the amount to be deducted from the income and then send the company the amount of earnings that will be paid to each employee after tax. In extremely rare cases where nothing would be done, the employee will be deducted at the time of the taxation in September, based on income reported in the spring of 2018.
The government is particularly concerned about self-employed, including doctors, who seem to be late. A communication campaign will be held in the coming weeks to inform them of what they need.
There remains "significant knowledge" in small municipalities, especially in Maiotte. "Public finance directors are responsible for making a meal of meals," reminding the city hall to return data from their officials and performers to the dedicated administration system, says Gerald Darmanin. According to him, the problems encountered by MSA, agricultural social welfare, have been solved. The military payroll, which was considered very difficult to manage, also worked well.
The case of households that did not report income
There remains a case of households that did not file a tax return in 2017. It is usually mandatory, even when they are not taxable. This is especially what allows the tax administration to grant them a reduction in housing tax, for example, or energy control, when their level of income does not exceed the fixed value. If they work in 2019, these people (young people who leave their parents' home or return from abroad, for example) apply a neutral rate, that is, one person without children, when moving to a tax on the 1st January. Therefore, they will be interested in linking with the tax authorities so that the tax authorities can determine their rate of duty to be applied next month if they do not want to pay too much tax in comparison with the actual situation. Over-payment by tax authorities during the period when they apply a neutral rate will then be refunded within two months. For those who do not appear for the tax, they will be reimbursed in September, based on the tax return 2018 April 2019.
How to adjust the rate in case of retirement
The same applies to pensioners who retired in 2018 or will retire in 2019. From January 2, they will be able to apply online to adjust the rate to their new revenue. Without any effect, their rate calculated in 2017 will be deducted from lower revenues due to a tax on disposal, which will reduce their tax. But it will also be able to ask the tax authorities to lower the rate based on projected revenue from 2019. In this case, the administration will refer this new rate to its pension fund. And it will compensate within 2 months of overpayment in January. Each taxpayer will be able to announce a change in the family situation on the internet since January 2. The rate will then be adjusted next month, for example in case of birth. Very short deadlines denying Solidarnost public finance union. He condemned the lack of management resources to prepare for a tax-deductible tax.
Darman's letter was sent at the end of December
So all Frenchmen are well informed, Gerald Darmanin plans to write a letter or e-mail to them at the end of December to remind them of the January 1 tax deduction and the availability of a contact number with the Tax Administration, which will then be free. Those who perform occasional tax breaks (child care, home help, leasing, etc.) will receive a special letter that reminds them that they will automatically receive 60% of the amount of these tax credits from January 15th. No taxpayer who benefits from tax credits will therefore make the money better for the country, hitting Gerald Darmanin. The balance of the tax credit to which they have the right to be returned in September. In this letter, the Minister will warn them of an important point: if he does not renew his tax credits, then the amount paid by the administration in January, calculated from tax returns from 2017, will have to be returned to the taxpayer. tax in September.
For employees on very short contracts, from one to two months (or less than a month), a neutral rate applies, because the Bercy will not have time to communicate a personalized rate with the employer. But these employees should not lose, says the Minister of Public Accounts, because it is planned to apply a deduction of half of the income array that will make money to make sure they do not pay each month too much. taxes in relation to what they owe.
"If there is a shock, it will be twice as positive"
In the context of a fiscal impediment, can a deduction tax cause a negative psychological shock, unfavorable to consumption? Gerald Darmanin does not believe at all. "If there is a shock, it will be twice as positive. On January 15, when (taxpayers) will receive 60% of tax credits, and the 17th in the month when they will see that they will not be collected by the end of the month," the minister predicts.
Read our interview with Gerald Darmanin: "Psychological shock of deduction will be positive"