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French Taxation

Payment of French Income Tax 2016

Monday 05 September 2016

If you are finding it difficult to pay your French income tax bill this year it is possible to ask for a delay in settling the bill.

Income tax bills (avis d'imposition) were sent out in France in August, including a consolidated demand for payment of social charges (prél√®vements sociaux) that may be due for those who are assessed for the charges on an annual basis.

The bill should not come as too much of a shock to most households, for tax rates have remained stable for income earned in 2015, and most households will already be accustomed to having made payments on account (by two instalments or direct debit) in anticipation of the bill.

Moreover, over 50% of households in France are below the income threshold that would make them liable for income tax. There are also less generous concessions for low income households on the social charges.

For those whose tax bill has come as a bit of a shock, or who otherwise find themselves in financial difficulties at this time, it is possible to make application to the local tax office for a longer period of time to pay the bill.

Where your income has declined by at least 30% over the proceeding three months you are entitled, as of right, to more time to make the payment.

In order to avail yourself of this right you need to provide proof of your reduction in income and your current circumstances.

Less than 30% then the decision is discretionary, although where your circumstances have changed significantly for the worse since the previous year it is not unusual for a longer period for payment to be agreed.

You would be best advised to go along to your local tax office with relevant documentation and discuss your position and options with a tax official.

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