2023-04-21 07:48:06
Since the transition to withholding tax in 2019, income tax has not experienced any further revolution. But each year sees its share of novelties appear, small or large, likely to modify the way of filling out the declaration or the amount of tax to be paid.
For 2023, the main changes concern the revaluation of the scale, the need to detail the activities for home employment, the exemption from tips or the new obligation to declare real estate.
The upgraded slices
As every year (with rare exceptions), the scale which serves as the basis for calculating income tax has been revalued according to inflation. This avoids fiscally penalizing taxpayers whose wages have increased as prices have risen.
After a year 2022 marked by a surge in labels, the evolution of the scale will be stronger this year. The floors and ceilings of the various tranches were revalued by 5.4%. The entry threshold for tax, at the rate of 11%, thus rises to €10,778 for a single person. The rate then goes to 30% for income exceeding €27,478, then 41% above €78,570. The highest bracket, at 45%, now starts at €168,994.
Details required for home employment
Households that benefit from the 50% tax credit for home employment expenses will now have to specify the activities to which they resort. They will be able to choose from 27 proposals which ones they use: tutoring or gardening, cleaning or childcare…
This additional formality introduced by parliamentarians should make it possible to understand which sectors benefit the most from this costly “tax niche”. A possible first step before a grooming of this device regularly accused of helping a little too much with the comfort expenses of the wealthiest households.
At the same time, the ceiling for the tax credit for childcare expenses for children under 6 years of age has been significantly increased. It goes from €2,300 to €3,500 per child.
Tips and overtime exempt
The tax boost granted to the restaurant sector after the Covid-19 crisis is making its debut. Tips (which previously were only very rarely declared) are officially exempt for the years 2022 and 2023. Employees therefore no longer have to declare them, at least as long as their remuneration does not exceed 1.6 times the minimum wage ( approximately €2,250 per month).
The exemption granted to employees working overtime is extended. It goes from €5,000 to €7,500 for paid “overtime” during the year 2022.
Obligation to declare real estate
The tax return will also be an opportunity for the tax authorities to remind the 34 million owners that it is now compulsory to complete a declaration of occupation of each property. “Several messages will be displayed throughout the declarative route to remind it”, explains the tax administration.
The use of each property, of the dwellings but also of their annexes (cellar, car park, etc.) must be specified: occupied by the owner, rented, vacant, etc. This new obligation, independent of the declaration of income, must be fulfilled before 30 June, under penalty of “fine of €150 per premises”.
This formality imposed on taxpayers will allow the tax authorities to identify dwellings that are not main residences (and therefore are not exempt from housing tax) and those that are unoccupied (and therefore subject to a specific tax on vacant dwellings ).
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