Maximizing your savings is a priority for many, especially as the end of the year approaches. A crucial tax milestone is looming before November 30, offering a unique opportunity to optimize your financial situation. This period is ideal for reviewing your tax strategies and ensure that all necessary procedures are completed on time.
By anticipating these actions, significant savings can be made and avoid unpleasant surprises when filing taxes. Find out how to take advantage of this deadline to reduce your tax burden and strengthen your financial health.
Understanding the flat-rate levy on capital income
The single flat-rate levy, often referred to as the “flat tax”, applies to interest and dividends from financial investments in France. This tax system combines a flat-rate tax of 12.8% and social security contributions of 17.2%.thus totaling a tax of 30%. Taxpayers can, however, escape this taxation under certain income conditions..
Exemption conditions and income thresholds to be respected
To avoid the flat rate levy of 12.8% on capital income, it is essential to respect certain tax income thresholds. For the 2024 tax, a single person must have a 2023 reference tax income of less than 25,000 euros to be exempt, while a couple benefits from a double ceiling.
Concerning dividends, these ceilings rise respectively to 50,000 euros for a single person and 75,000 euros for a couple. The exemption request must be sent to your financial institution before November 30. For life insurance products or retirement savings plans, the process must be carried out at the time of receipt of income.
Procedure to follow and importance of respecting deadlines
To benefit from the exemption from the flat-rate deduction, it is imperative to inform your financial institution by providing a sworn declaration before November 30, 2024.
This deadline is crucial: a delay could result in the automatic application of the “flat tax” of 12.8% on your investment income. Life insurance contracts and retirement savings plans are an exception, because the request must be made when the income is received. Failure to meet these deadlines can increase your tax burden, highlighting the importance of planning this process carefully to optimize your personal taxation.
