The 2020 finance law brings a whole range of changes for the finance of individuals and businesses alike. In addition to the long-awaited reduction in income tax, other measures have been adopted by the government to come into force at the start of the year. Adopted by the National Assembly and the Senate in December 2019, the finance law was published in the official journal at the end of the year. I offer you here a brief overview of the main changes made by the finance law.
Finally, the legislators and the government decided in favor of the deduction at source, which allows millions of households to benefit from a reduction in income tax from January 2020. This measure allows an average gain assessed 350 euros for tax households subject to the first bracket of the scale. On the other hand, households subject to the second tranche will benefit from a reduction of 125 euros for a single person and 250 euros for a couple. I suggest you go to the tax office website, which has made a simulator available to assess the gain in purchasing power based on your annual taxable income, the number of units and your family situation.
No less than 8 million French people help a loved one with a loss of autonomy, sometimes at the risk of upsetting their professional life. To limit the loss of income caused by this support, the government has set up compensation for immediate leave within the Social Security. Coming into force from October 2020, this compensation is assessed at 43.52 euros per day for a couple and 52 euros for a single person. It will be paid over a maximum period of 3 months for the caregiver’s entire professional career.
From now on, life insurance contracts taken out before January 1 , 1983 will be taxable in the event of withdrawal. This measure affects earnings from bonuses paid since October 10, 2019, and will save earnings from payments made before that date. For more information about life insurance contracts and advice on wealth management, I recommend that you consult the website of the wealth management firm Cabinet Fennas.
As part of the simplification of administrative procedures, taxpayers whose income does not vary, and whose tax return does not require corrections, will now be able to benefit from the tacit declaration. Therefore, if your income has not changed in 2019 (whether a decrease or an increase), you will not be required to return the pre-filled income statement which should be sent to the tax authorities in the spring of 2020. This new measure introduced by the finance law would concern nearly 12 million tax households in France.