ARTICLE · 19 JULY 2017

French Tax Revolution Postponed

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Withholding ‘at source' the personal income tax of French employees and reflecting it on monthly payslips was scheduled to begin in 2018, however implementation is now postponed.

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Withholding 'at source' the personal income tax of French employees and reflecting it on monthly payslips was scheduled to begin in 2018, however implementation is now postponed.

During the presidential election campaign, Emmanuel Macron had declared he would postpone the tax reform if he won the election. Following Macron's election, on 7 June 2017, Prime Minister Edouard Philippe confirmed the postponement of the new system to January 2019. This additional year will be used to test the effective technical feasibility of the new system, using a restricted sample of volunteer companies.

It means, for the majority of companies, that no withholding at source of employee personal income tax will take place in 2018, and the decree confirming this postponement will be published during the summer.

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