France Simplifies Income Tax Declaration

by Ulrika Lomas, Tax-News.com, Brussels

21 April 2010

During a recent press conference, France’s Budget Minister François Baroin unveiled details of the 2009 income tax declaration, highlighting key changes for taxpayers.

Baroin emphasized that taxpayers should not have to spend too much time completing the declaration, echoing assurances from the ministry that the 2009 income tax declaration is much simpler, particularly for individuals electing to complete their declarations online.

The key change to note for this year’s declaration is that the deadlines for online filing are no longer linked to school holidays and instead are linked to the particular department (local authority) in which the taxpayer lives. Residents of departments in zone 1 (numbered 1 to 19) have until June 10 to complete their declaration. Individuals in zone 2 (departments numbered 20 to 49) have until June 17. For all other departments, zone 3 (numbered 50-974), the deadline is June 24. Paper declarations are to be returned by May 31.

According to the recently published guidelines, the pre-completed boxes will be the same as for 2008, and will include information such as salaries, pensions and income from securities and transferable capital (life insurance, shares etc).

In a bid to reduce costs and resources, French tax authorities are requesting this year that those who do not currently pay by bank transfer provide their bank details, thus enabling any repayments to be made by bank transfer rather than by cheque, although this is not compulsory.

Under the heading marital status (situation familiale) there is a new box to tick for anyone who has raised a child on their own for at least five years. A new heading has also been created for certain entrepreneurs.

According to the ministry, forms will be sent out between April 20 and May 5, and the online service (impots.gouv.fr) will be available from April 26.

The French Finance Ministry has also announced that the deadline for filing the new economic contribution for businesses (la contribution économique territoriale – CET) will be extended from May 4 to June 15, 2010.

The CET, which replaces local business tax in France from 2010, was introduced by the 2010 Finance Law, and comprises a land tax levied on companies (la cotisation foncière des enterprises – CFE) and a new levy on the value added by a company (la cotisation sur la valeur ajoutée des enterprises – CVAE). Network companies are also liable to pay a specific lump sum tax referred to as IFER.

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