What changes for organisations?
Initially provided for by the 2017 Finance Act and postponed by a year by a decision dated from September 22nd, 2017, the French general withholding tax system will indeed be implemented as from January 1st, 2019.
Going forward, employers will collect income tax due on employment income, a role that was taken by the French tax administration up until then. This new role will result in changes in several departments within companies and requires preparation in several areas for organisations.
The first implication is tax-related, in order to fully comprehend the numerous details and specific cases of this reform (e.g. expatriates, internationally mobile employees, and multiple work contracts).
The second implication is technical, in order for companies to have all the necessary payroll-management resources (softwares, platforms, etc.) adapted to the new system.
The third implication is about communication, especially for Human Resources, in order to insure employees are informed of and understand the upcoming changes.
PwC Société d'Avocats will work by your side, from strategy to execution, to help you manage the implementation of the French general withholding tax system.
We have a global network of experts specialised in personal income tax and global mobility and we work with new technologies to ensure information is shared in a safely manner.
In an evolving French tax environnement, we put our knowledge, expertise and digital tools to your service to help you navigate the reform smoothly and provide you with an enhanced consulting experience.