2024-05-17 06:00:00
How does the PFU work?
The Single Flat Tax (PFU), also referred to as a “flat tax”, is a simplified taxation mechanism for capital revenue launched in 2018. It pertains to revenue from movable capital, resembling curiosity from (unregulated) financial institution books, dividends, good points from transfers. of securities, and so on.
The PFU is about at an general charge of 30%, made up of 12.8% revenue tax and 17.2% social safety contributions (CSG, CRDS, and so on.). By default, capital revenue is topic to the PFU. Monetary establishments apply this levy straight when paying curiosity or dividends.
How does progressive taxation, also referred to as “scale” taxation, work?
Taxpayers have the choice to decide on the progressive revenue tax scale as a substitute of the PFU.
For those who select this selection, the speed of tax in your revenue will depend on your marginal tax charge (MTR), ie the tax “bracket” you might be in. There are 5 revenue tax scales:
• 0% (lower than 11,294 euros)
• 11% (from 11,295 euros to twenty-eight,797 euros)
• 30% (from 28,798 euros to 82,341 euros)
• 41% (from 82,342 euros to 177,106 euros)
• 45% (greater than 177,106 euros)
The tax in your capital revenue is subsequently X% revenue tax (in line with your marginal tax charge, TMI) and 17.2% social safety contributions, which apply in all circumstances. To seek out out what your present TMI is, take a look at your final tax return.
How have you learnt which choice is extra advantageous?
By default, the PFU levies tax on cell revenue.
In case your marginal tax charge is increased than 12.8%, do not change something, the PFU (or flat tax) is to your benefit. In reality, in case your TMI is 41% for instance, your cell revenue will likely be taxed at a most of 30% with the PFU, in comparison with 58.2% (41% + 17.2%) with scale taxation.
However, in case your marginal tax charge is lower than 12.8%, you may have each curiosity in asking for a tax charge. In reality, in case your TMI is 11% for instance, your cell revenue will likely be taxed at 30% with the PFU, in comparison with 28.2% (11% + 17.2%) with scaled taxation. A spot is much more helpful in case you are not topic to revenue tax.
Find out how to ask for taxation on the size?
While you file your tax return on-line, the administration performs an automated simulation. If the size taxation choice is extra favorable to you, you’ll be notified and invited to tick the field asking for this taxation to be utilized. This can be a 2OP field. You can even verify it your self exterior the simulation in order for you.
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