France to Distribute €5.8 Billion in Tax Advances to 9 Million Taxpayers on January 15, 2025

January 15, 2025
France to Distribute €5.8 Billion in Tax Advances to 9 Million Taxpayers on January 15, 2025
  • Various expenses qualify for tax breaks in France, including charitable donations, renting below market rates, and childcare costs, each with specific eligibility rules.

  • On January 15, 2025, the French Ministry of Finance will distribute advances on tax reductions and credits to approximately nine million taxpayers, totaling €5.8 billion.

  • Each eligible taxpayer is expected to receive an average advance of €639, based on expenses incurred in 2024 for home aid, childcare, and union dues.

  • To receive the advance, taxpayers must have declared expenses eligible for tax breaks in their most recent tax declaration for 2024, covering expenses incurred in 2023.

  • The transfer will be labeled 'avance crédit impôt', representing an advance payment based on tax breaks declared in the 2024 tax declaration.

  • The process for activating the immediate advance is straightforward, particularly for clients of accredited service providers, who can easily set up their accounts online.

  • Taxpayers can check their tax accounts on the official French government tax website to find details about their expected advance payment.

  • If tax authorities do not have a taxpayer's banking details, a cheque will be mailed by the end of January as an alternative payment method.

  • The immediate tax credit allows taxpayers to claim 50% of eligible expenses up to €12,000 annually, equating to a maximum credit of €6,000, which can increase for those with disabilities.

  • This advance system was introduced alongside the implementation of withholding tax, allowing taxpayers to access their tax benefits sooner than before.

  • Concerns remain regarding the pace of progress on these issues, with stakeholders expressing frustration over the delays in providing broader access to these financial supports.

  • Despite the success of the immediate advance system, there are notable exclusions: individuals receiving certain disability benefits will not have access until 2027, and parents of children under 6 cannot use it for childcare expenses until 2026.

Summary based on 2 sources


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