You are deducted, each year, from a tax installment on the interest on your bank investments. But did you know that you may be able to escape it? Top chrono: you must apply to your bank before the end of November to be exempt from tax in 2023.
Taxation of savings has been greatly simplified with the reform of the single flat-rate deduction (PFU), nicknamed flat tax, in force since 2018. A, from the LDDS…), taxation is the same for all gains from financial capital: 12.80% income tax and 17.20% social contributions. That is 30% overall. The range of investments concerned by the flat tax thus extends from term accounts to stock market income via classic bank books or home savings: PEL and CEL opened since January 2018 are in fact subject to tax from the first year of detention.
This flat tax is sampled in two stageslike the withholding tax on wages and other earned income. 1. A perception the source at the time of payment of interest and dividends: this is called a tax installment. 2. A regularization following the annual declaration income, taking into account what has already been withdrawn.
Taxes: this little-known box that deprives you of an exemption, like millions of savers
Possible waiver of down payment on interest for the year 2023
If your household is taxed little or not at all, you may still be exemption from the income tax deposit, 12.80% so. Please note: it is already too late to be exempt from tax on interest in 2022, which you will probably receive at the end of December. An exemption sent in this fall of 2022 is valid for the interest received in 2023! For the request for exemption from the levy to be admissible, it must reach your bank, and each of the financial establishments where you hold a product concerned, before November 30, 2022included (unless your bank required to receive the mail before this chance).
This exemption request must be renewed each year.and it is sometimes necessary to anticipate by a few days the sending of the document to his (or your) bank(s) to take into account possible delays in processing or routing.
Who can claim the tax advance exemption?
The request for exemption from the 2023 tax levy, also called request for exemption from withholding tax on account or request for exemption from the non-final withholding tax, takes the form of a simple sworn statement.
For the interests bank books, PEL and all the fixed income investments concerned, you must certify that your reference tax income (RFR) appearing on the 2022 tax notice does not exceed:
- 25,000 euros for single people;
- 50,000 euros for households subject to joint taxation.
Concerning the down payment request dedicated to dividends, the approach is similar but the threshold differs. In this case, the RFR must not exceed:
- 50,000 euros for single people;
- 75,000 euros for households subject to joint taxation.
sample tax exemption request letter
Banks and financial institutions usually provide you with a pre-filled certificate. Otherwise, here is the exemption request form provided by the tax administration.
I, (…),
moreover (…),
requests to be exempted from the levy provided for in I of article 125 A of the CGI and swears that the reference tax income of my tax household appearing on my tax notice established in respect of the income of the penultimate year preceding the payment of the fixed income investment products and similar gains mentioned in I of the aforementioned article is less than:
– 25000 (for single, divorced or widowed taxpayers);
– 50000 (for taxpayers subject to joint taxation).
(…), the (…),
(Date and signature)
Nota Bene. For the dividendsthe model is the same, modifying the amounts to 50,000 and 75,000 euros.
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The annual declaration to finalize the procedure
Whether or not you request an exemption does not change the final amount of income tax: the exemption only allows you to avoid paying an advance to the tax authorities.
About the interests 2023those which are the subject of the request for exemption this fall: you must in all cases declare them on the occasion of the tax return complete at spring 2024. You are free to choose, when declaring, the flat tax or the progressive scale option. You will then regularize thefinal tax on 2023 income during thesummer 2024.
Good news for PER holders
The deduction of tax on earnings only concerns life insurance or the retirement savings plan (PER) when you make a withdrawal. Again, a tax exemption is possible. And the deputies have repaired an oversight concerning the PER, to avoid having claimed this exemption a year before making a withdrawal…
From now on, here is the rule for PER and life insurance, as explained on the tax website: the request for exemption is made no later than the receipt of the incomeand no longer before 30 November of the year preceding that of the payment.
Property tax, income tax… The new calendar for the end of 2022 with the abolition of the TV license fee