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Change in the tax system Minister Gérald Darmanin is adopting a proactive approach to inform the French population of a significant change in the tax system. At the end of December, he plans to send a letter to all French citizens explaining the implementation of this change. Additionally, a toll-free number will be established to answer any questions or concerns they may have. The foundations for this transition were laid throughout 2018, although some adjustments are still needed.


Implementation of the change in the tax system: –

A crucial aspect of change is the adoption of the DSN (Nominative Social Declaration) by companies, particularly small businesses, as it allows direct correspondence with the tax administration. Currently, around 37,000 small businesses have not yet implemented this system. However, the government will not impose sanctions on these companies if they comply after January, except in cases of proven tax evasion, such as misuse of payroll deductions for purposes other than paying taxes. tax. To simplify things, small businesses with fewer than 20 employees will have the option of opting for the TESE (Titre Emploi Service Entreprise) system. As part of this system,


The self-employed, including doctors, seem to have paid little attention to the implementation of the new tax collection system. To remedy this, the competent authorities will endeavor to contact them and inform them quickly.

Key considerations and procedures for different groups: –

Individuals who have not filed a 2017 tax return but continue to work in 2019 will be subject to a neutral tax rate from January 1. To avoid a neutral rate higher than their actual liability, these people are advised to contact their tax center. In the event of an overpayment, it will be reimbursed within two months after adjusting the rate according to your personal situation. Failure to come forward will result in an adjustment in September 2019, based on the declaration of your 2018 income.


For individuals who have experienced changes in their personal situation during 2018, an online platform will be available from January 2 to allow them to inform the tax administration. The new tax rate will be applied from the following month, ensuring a timely adjustment.


Finally, individuals who benefit from tax credits, such as those linked to childcare or rental investments, will receive 60% of the amount of the credit as of January 15, 2019. The remaining balance will be paid in September.


In summary, Minister Gérald Darmanin is taking proactive measures to inform the French population of a significant change in taxation. Companies, particularly smaller ones, are encouraged to adopt the DSN system, while self-employed people will be contacted to ensure their compliance. Those who did not file a tax return in 2017 and continue to work in 2019 will be subject to a neutral rate, with provisions in place to prevent overpayments. Individuals experiencing changes in their circumstances can notify the tax authority online for an appropriate adjustment, and those receiving tax credits will receive partial payments in January, followed by the remaining balance in September. 

DAMY Law Firm .