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Reductions and tax credits: what are the new rules of the game?

2020-02-15T19:05:59.208Z


OUR ADVICE - The withholding tax has not eliminated the numerous tax advantages applicable in terms of income tax.


Before the withholding tax came into force, the reductions and tax credits obtained in one year made it possible to reduce the amount of your monthly payments, or of your provisional third parties, to be paid in the following years. Since January 1, 2019, this is no longer the case. Your source tax is calculated without taking into account these tax advantages (except for certain households with modest incomes), these latter being from now on refunded to you the year following that of the payment of your expenses. However, adjustments are planned to limit the cash flow difficulties linked to these new rules.

● Can we still reduce our taxes?

The withholding tax has not eliminated the many tax advantages applicable to income tax. Donations to works, the employment costs of an employee at home or childcare, investments in rental real estate or even in SMEs, always give entitlement to a tax bonus allowing them to reduce their taxes.

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Source: lefigaro

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