Quickly, complete this process before November 30, 2024 to benefit from this tax reduction in 2025 and avoid a levy of 12.8%.
Each year, your investments generate income subject to tax. But did you know that it is possible to be exempt from the flat rate tax of 12.8% under certain conditions? A simple step, to be completed before November 30, could allow you to reduce your tax bill in 2025. Here is everything you need to know to avoid missing out on this advantage!
Taxes: what tax advantages can we still benefit from in 2025?
Several tax changes await us by 2025but we will have to wait for publication of the Finance billno later than December 31, 2024, to know the precise contours. But like every year, there is a possibility for taxpayers to reduce their taxes on the income generated by financial investments. This device allows to avoid the single flat-rate levy (PFU) of 30%which includes:
- 12.8% for income tax,
- 17.2% for social security contributions.
However, in 2025, this partial exemption is only accessible to those whose reference tax income does not exceed certain thresholds:
- €25,000 for a single person,
- €50,000 for a couple subject to joint taxation.
These thresholds rise at €50,000 and €75,000 for dividend income.
Taxes: what to do before November 30 to avoid a 12.8% levy
And above all, to benefit from this exemption, a crucial step must be completed before the end of November! The taxpayers concerned must:
- Contact their bank or financial institution : provide a sworn statement indicating that your tax income is below the thresholds set for the previous year (2023 for 2024 tax).
- Meet deadlines : for most investments (bank accounts, PEL, shares, bonds, etc.), the request must be made before November 30, 2024. However, in the case of life insurance or capital withdrawal from a retirement savings plan (PER), the request can be made up to the time of receipt of income.
Without this request, your bank will automatically apply the flat-rate levy of 12.8%even if you meet the conditions to be exempt.
Taxation on the tax scale: box 2OP, to be checked in the income tax return
In addition to this procedure to be carried out with your bank before November 30another crucial step, not to be missed, will occur during the income tax return. To avoid the single flat-rate levy (PFU)non-taxable taxpayers must also check the 2OP box in their declaration.
This option allows you to:
- Renounce the “flat tax” (flat tax at 30%),
- Submit your investment income to the progressive scale of income taxwhich may be more favorable if you are below the tax thresholds.
Please note, omitting this box may lead to a tax catch-upeven if you are not taxable!
