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Home employment: the tax credit will continue to benefit services provided outside

2021-02-16T07:01:18.191Z


The government has decided to override the decision of the Council of State deeming ineligible services provided outside the home. C


Individuals and professionals can take a break.

The benefits eligible for the tax credit for the employment of a home employee will ultimately remain unchanged for your next income tax return.

"For the taxation of the year 2020 and until further notice, none of the categories of services which were previously eligible for it is excluded from the scope of the tax credit", says Olivier Dussopt, Minister Delegate in charge of Public Accounts , in a press release.

On November 30, a decision of the Council of State had caused trouble.

The highest French court ruled that only services performed within the home could benefit from the tax credit.

Thus rendering ineligible the nanny who accompanies the children for the journey home - school or to the sporting activity or the carrying of food at home, for example.

This strict interpretation of the law was contrary to that of the administration which, until then, considered that these services carried out outside were part of a “global offer of services”.

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The government, favorable to a "stability of the fiscal framework", therefore ignores the opinion of the Council of State.

Taxpayers can continue to avail themselves of "circular ECOI1907576C from the Directorate-General for Enterprises of April 11, 2019 relating to personal service activities", explains Olivier Dussopt.

Instructions will be given to the tax services, so that all expenses incurred in 2020 by individuals can benefit from the tax credit.

3.4 million individuals affected

The government's clarification was hoped for by the 3.4 million individuals who use the tax credit.

"This announcement was eagerly awaited and essential to reaffirm a clear tax framework and secure the scope of the tax credit, an essential link in the fight against undeclared employment", supports Marie Béatrice Levaux, president of the federation of private employers of France (Fepem).

She was worried about seeing this tax niche, very popular with the French, attacking.

Professionals in the sector, in the dark just a few weeks to issue tax certificates for households to benefit from the tax credit, are also happy.

“It is a decision of good sense, extremely positive in full health crisis.

Today, a whole ecosystem is reassured ”, greets, relieved, Amir Reza-Tofighi, president of the Federation of personal and local services (Fédésap).

After this reassuring announcement, the government should "strengthen the legal security of taxpayers and operators concerned", insists Olivier Dussopt.

A rewrite of the paragraph that made the Council of State tick could take place as early as March, with the amending finance bill (PLFR), or in November, at the time of the finance law.

So that the current form of the tax credit is definitely set in stone.

Source: leparis

All business articles on 2021-02-16

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