All the tax measures below are still to be ratified by parliament so may change.
The income tax bands per part (the barème scale) will be as follows
2019 (this year's tax return and concerning the payments in advance made in the 2019 year)
INCOME TAX RATE
Up to €10,064 0%
€10,064 to €27,794 14%
€27,794 to €74,517 30%
€74,517 to €157,806 41%
€157,806 and over 45%
2020 (for calculation of the payments in advance for the 2020 year only)
INCOME TAX RATE
Up to €9,964 0%
€9,964 to €25,405 11%
€25,405 to €72,643 30%
€72,643 to €156,244 41%
€156,244 and over 45%
The main changes are the large increase in bands for 2019 only and the reduction to 11% of the first band in 2020. It is expected that the overall reduction in tax in 2019/2020 will benefit all households. Any over payment made in 2019 will be refunded sometime around the end of July after the annual tax return has been submitted.
Taxation of Investment Income
This remains largely unchanged. The 30% rate is still available (including social charges) but you can still opt for the normal bareme scale, which is beneficial to those covered by an S1/private healthcare.
Wealth tax (l’impôt sur la fortune) will still only apply to real estate/property though property held by a registered business will be exempt. All tax brackets and rates remain unchanged.
2020 sees the first year of total exemption From TdH for households whose incomes are within certain limits. The plan is that TdH will be abolished by 2023 for ALL households, regardless of income levels.
Energy Conservation Tax Credits
No changes are currently available for publication
No changes has been announced so rates will remain:
9.7% for employment income
9.1% on pension income
17.2% on investment income
7.5% for those covered by an S1/private healthcare
Although turnover limits for micro-entrepreneurs will be doubled (from €33,200 to €70,000 for services and from €82,800 to €170,000 for sales) the TVA thresholds remain the same, therefore, if you go over the original limit by more than 10% or up to 10% in consecutive years you will be forced to register for TVA and charge it on all services/supplies/sales.
No change, from 2019, those businesses with an annual turnover less than €5,000 will be exempt from business rates, the Cotisation foncière des entreprises (CFE).