How does income tax work in France?

Every French resident is obliged to pay income tax every year. Thus, it is necessary to proceed to the declaration of their income. The time has evolved so that today, the deduction is done online. What is income tax about?

What is income tax about?

For everything that concerns income, profits made on capital, you should know that it is mandatory to pay tax. For foreigners in France, you will need to know how the income tax amount is, you can look at here to get more details. The payment of income tax is divided into three parts in France. Firstly, there is the personal income tax. Secondly, there is the tax concerning the generalized social contribution. Then thirdly, there is the tax that applies to the contribution and repayment of social debts. During the First World War, France needed support and it is in this context that the generalized contribution tax was created. All French households are aware that it is an obligation to pay the IRPP. This tax is also compulsory for a number of personal companies as well as for civil society. Do not confuse this type of tax with the taxes concerning the premises in France.

How does the income tax work?

Generally, there are two different ways in which income taxes are levied in France. Taxes are deducted directly from the salary income of each French resident. This is why the gross and net salary is mentioned on the payslips. It is then important to declare your income in a conscious way, which is taxable in France. The tax return is its name before 2019.  So every year, every French citizen residing in the country must necessarily pay the tax due the previous year. Find out more by visiting the website linked in this article.

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