WITH HOLDING TAX: A BLOW TO REAL ESTATE PURCHASING ?

THE HOLDING TAX FOR REAL ESTATE PURCHASING ! 

WITH HOLDING TAX: A BLOW TO REAL ESTATE PURCHASING  ?
WITH HOLDING TAX: A BLOW TO REAL ESTATE PURCHASING  ?  


The actual introduction of the withholding tax is announced for January 1, 2019. As of this date, income taxes are subject to direct deduction from wages.

THE PURPOSE OF THE WITHHOLDING TAX

This is a tax collection method that is supposed to facilitate taxpayers who are subject to income tax.

However,

these taxable persons sometimes face changes in their personal or professional situation. These changes have negative consequences for their finances.

As a general rule, the assessment of taxation was due one year after revenue collection. Nevertheless, the taxpayer's budget became precarious as a result of problems of job loss, death, divorce or retirement.

In addition, the French government wants to be on an equal footing with its European neighbours in terms of taxation.

CALCULATION OF THE DEBT RATIO WITH THE WITHHOLDING TAX

The basis for calculating the income tax remains the same because the withholding tax is added to the other compulsory deductions.

 We can mention the contributions and the CSG. Thus, the payslips will integrate the salary before deduction and the salary after deduction.

Each commitment for a mortgage credit imposes the not exceeding the rate of indebtedness. Indeed, this rate of indebtedness is admitted by the majority of financial organisations.

For the calculation of the debt ratio, we use the net income and deduct the rent charges.

Apart from rents, there are other outstanding credits, alimony, property taxes, housing taxes and current expenses. This debt ratio is set at 33%.

The rest of the income corresponds to the rest to live. The rest to live is for food, clothes, travel, recreation.

THE IMPACT OF THE WITHHOLDING TAX ON THE REAL ESTATE PROJECT

In principle, it should not have a negative impact on a household's borrowing capacity. In order to calculate the debt ratio, banks are banking on the net before tax available on the pay slip.

 As for the rest to live, the banks adjust their method of calculation according to the way in which they integrate the tax.

This makes it possible not to underestimate the borrowing capacity.

THE OPERATING MODE OF THE COLLECTION AT SOURCE

Between January and September 2019, an effective increase of the income tax will be made on the withholding tax. Each taxpayer is concerned if he benefits from a reduction or a regular tax credit.
This concerns CESU, childcare, Pinel law, FIP tax exemption.

It can also include energy saving work in the main residence, housing costs in a retirement home, tuition fees, etc.


It is more of an advance on the credits and the tax reduction, reimbursed around August or September 2019. The mode of application is based on an average tax rate.

 However, this average tax rate does not take into account the reductions and tax credits already acquired.

thanks for the time .

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