Avis d’Impot is basically income tax in France. All tax residents of France are required to complete a form for the Avis d’Impot which includes reported income and the requirement for the date of submission may change. A general calendar of dates for tax notices is available online as well as by mail.
Jennie Poate at Ark Capital, a company of Independent Financial Advisers specialising in wealth preservation and management, tax, financial and succession planning for private clients and their families, throughout Europe, explains more about the Avis d’Impot system.
Understanding your tax return reply form ‘Avis D’Impot’
For the vast majority of income tax notices, the deadline for Payment of the tax balance is September 15 for the previous year’s income.
The form you need to submit will generally need filing by May and this lists the income you receive, and the deduction of allowances – leaving you with a net figure to pay if required.
In 2019 ‘PAS’ – Prélèvement à la source – was introduced whereby the authorities began to implement a ‘pay as you earn’ system.
French tax is calculated on a parts system so in this example below, you can see that the ‘nombre de parts’ is 2, meaning 2 adults. If you have children they also have ‘parts’ to contribute which differs according to the number of children. Further allowances are available for those who are disabled or over 65.
A brief explanation is as follows:
- This shows income earned by each individual which may be salary, pension or rental income.
- This corresponds to ‘PFU’ known as flat tax or Prélèvement Forfaitaire Unique which is tax payable on all investment income.
- This is the gross amount of tax before any allowances are input.
- These are the reductions netting down your taxable income.
- Revenue fiscal de reference. This is a measure of the household’s resources and makes it possible to obtain, for example, social benefits or certain tax exemptions for those over 65.
- This shows a person who has a régime micro enterprise where tax is payable quarterly on declarations.
If you think there has been an error made on your tax return you normally have until mid-December to make a correction. Generally, tax experts will tell you to pay the tax owed first and then ask for a correction rather than run the risk of a fine for non-payment. If you have any doubts whatsoever, then you should consult a tax professional.
You can read more about the Avis d’Impot on the Impots.gouv.fr website (French only).
If you’d like to find out more or have questions about how to maximise your investments, contact Jennie Poate at: jennie@ark-wm.com to find out more and arrange a consultation.
