Indeed, it is possible to request an exemption from the income tax deposit. But be careful, the countdown has begun: this request must be made before the end of November 2023 to benefit from this tax system in 2024.
How to proceed ? How to write the letter? Who should I send it to? The Planet Editorial team invites you to find out more about this administrative letter which deserves your attention.
The advance payment exemption, administratively known as the non-discharging flat-rate withholding exemption, is a measure which allows certain taxpayers not to pay an advance payment on the interest and dividends they receive from their financial investments.
Indeed, since 2018, capital income has been subject to a single flat-rate levy (PFU) of 30%, including 12.8% income tax and 17.2% social security contributions. This tax is normally deducted at source by the bank or financial institution which pays this income.
However, taxpayers whose reference tax income is below certain thresholds can request to be exempt from this deposit… It’s up to you!
If you are one of these households with little or no tax, you can claim an income tax advance exemption. This exemption concerns the interest that you will receive in 2024. Take advantage of this great opportunity to reduce your tax burden and better organize your budget… But hurry!
The exemption request must be sent to your bank and all financial institutions where you hold a concerned product before November 30, 2023. It is important to note that it is the date of receipt that counts, and not the date of sending.
To benefit from this tax relief, you must certify that your reference tax income (RFR) does not exceed certain thresholds.
To request this precious sesame, you can use a pre-filled certificate provided by your bank or financial institution. Otherwise, you can write a letter following the template provided by the tax administration.
You will then have to declare the interest concerned when filing your income tax return in spring 2025. The exemption does not change anything on the final amount of income tax: it only allows you to avoid paying an advance to the tax authorities. You will then regularize the final tax on 2024 income during the next declaration in 2025.
