Banking, insurance, currency exchange, taxation, prices.
4 posts • Page 1 of 1
Suddenly this year I had a Taxe d'habitation demand. Have a low income and hence have been always been exempt . My 2014 income had gone up a bit but not that much. A close look at Avis D'Impot sur le Revenu, and I noticed a different presentation: Checked figs; Rev brut global correct, Rev (net) impos correct but Taux effectif seemed to be too high . Calculated that the abattement personnes âgées has not been deducted , hence I'm above the platform fo the Revenu Fiscal de Réference (Taux Effectif = Rev Fiscal de Réf ) and this explains Taxe d'Hab . Spent ages reading Impot Brochure on line: Lots about calculating tax but couldn't see much about calculation Rev Fiscal de Réference. Finally the question: Does anyone know if they are supposed to deduct the Abattement Personnes Agées to calculate the Revenu Fiscal de Réference ? + For 2014, have there been changes that would explain this ?
So far as I can gather, you do not deduct the abattement personnes agées (or anything else much) in getting to the revenu fiscal de reference. If anything, you add things back which get an easy ride in arriving at your regular taxable income. It's meant to be the nearest thing that the French system gets to your "genuine" income, before it's pummelled and massaged in the various ways that apply to mainstream tax liability. I think that it is quite normal for it to be higher than your revenu imposable . Sorry.
Many thanks for the reply. By chance I think I may have heard the answer on on FR2 news this evening. It was only a brief item but there have been changes and lots of older people on low income have found themselves either paying taxe d'hab for the first time or getting a smaller reduction . This might explain why although my income has gone up by a few hundred euros but my Taux Effectif has gone up by almost 3K euros. Apparently Manuel Valls has tweeted that he is going to do something about it . I'm not holding my breath .
As I dimly understand it, it is because older persons who brought up a child single-handed used to retain a "demi-part" in the quotient familial system, but that has been phased out. As a former tax policy person, I am well aware of the pressures that tend to make tax systems an ever-more-unintelligible mess, but the French system seems to be insanely bad.