What does the tax return in “confined” mode mean? Not much in 2020, since you are reporting your income from last year. As a result, the effects of the crisis - partial unemployment for salaried workers, closure of the establishment for the self-employed - synonymous with declining incomes, have not yet been felt. Ditto for individual employers who can no longer pay their employee (s), nannies and housekeepers in particular. The consequences in terms of tax credit reductions will only be significant in a year. And no question of touching the last gestures of the government. Despite the budgetary hole linked to the pandemic, the tax cuts that came into effect on January 1 are not in question.
But there are still changes. The calendar, for example, has been reworked. "People found themselves confined to places where they did not have all the necessary documents on hand," said Laurent Benoudiz, president of the Order of Chartered Accountants Paris-Ile-de-France.
Another element, the public finance centers did not receive any public during the confinement period. As for the calendar of tax notices, it will be available online in the summer. "Given the current health context, it is not possible to give more visibility on specific dates," says the Directorate General of Public Finance (DGFiP).
Withholding tax is timely
What is also changing is the updating of taxpayer income tax in real time in the face of the crisis. "The withholding tax is a natural shock absorber particularly suitable in the event of a crisis like the one we are currently experiencing", welcomes the tax administration. If the income of an employee, an unemployed person or a retiree falls, the tax deducted also drops immediately. Better still, taxpayers can change their withholding tax rate at any time on the impots.gouv.fr site. 38,681 downward modulations were thus recorded between March 16 and April 16.
Regarding the self-employed - traders, craftsmen, doctors, lawyers, architects, etc. - whose income is not paid by third-party collectors, the withholding tax also provides for flexibility measures. "They can transfer the tax installments taken each month directly to their bank account," explains Laurent Benoudiz. With the coronavirus, this possibility was also offered to the managers of SARL, ie 700,000 people ”. Between March 16 and April 16, the administration recorded 37,776 deferrals of deposits, with a peak of more than 20,200 deferrals the week of March 16, while the usual monthly average is 540 deferrals.
The declaration has changed in nature
“The great innovation linked to the PAS (withholding tax) is that the tax return is now used less to calculate the amount of taxes to be paid, than that of the refund to be collected for taxpayers who benefit from reductions and tax credits, ”notes Laurent Benoudiz. In January, they indeed received a 60% deposit (on the basis of their declaration from the previous year). In the summer, they will receive the remaining 40%, based on their 2020 income tax return.
New to the current edition: users are given the opportunity to give up 60% of their “recurring” tax reductions or credits in advance (donations, union dues, personal services, childcare costs , accommodation in nursing homes, rental investment) or to reduce the amount. The objective is to allow users who did not incur the same expenses in 2019 as in 2018 not to have to receive this advance in early 2020, then to have to repay it eight months later.
