The French Government announced a series of tax measures aiming to reduce administrative requirements and the simplification of tax compliance. The package includes 92 measures, most of them dedicated to the simplification of administrative procedures French companies must go through every time when they have to deal with the tax authorities. Another measure targeting the income tax deduction at source is also under debate.
The measures were announced by French Secretary for State Reform and Simplification, Thierry Mandon, two years after the President’s announcement of the “Choc de Simplification” proposal. There will be a set of 92 measures, 50 of them directed towards the reduction of administrative requirements and regulations for tax compliance.
One of the most important measures is a proposal to simplify all the operations French companies must fulfill in order to pay the social security taxes for employees. The new measure proposes that companies deal with one authority only when paying social security taxes. However, the Government announced there will be no merger between the income tax and social security.
France also wants to set up a small and medium enterprise council which would review the impact of all legislative motions on these companies. This proposal will first be presented before the European Commission.
Another notable measure is the introduction of a new code of best practice in order to improve the authorities’ relations with French taxpayers. The social security authorities’ website will also be improved with this occasion.
Among the measures aiming to reduce tax compliance regulations is also the introduction of the income tax deduction for French employees at source. Even if this measure is top priority on the Government’s list, it won’t be introduced until the beginning of 2018 as a whole new infrastructure must be created in order to collect the income tax without a significant impact on the taxpayers. The system will first be introduced for a trial period of three years, starting with 2016.
For information about the actual taxation system, please contact our French attorneys.
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