Every year, savers may be surprised by the anticipated tax deduction on the interest on their investments. However, there is a loophole for those who act in time. This November, a simple letter to your bank can allow you to pause that down payment in 2025. Here's how to navigate this crucial process.
Global finance: towards a new economic crisis because of the coronavirus? (3/3)
Why send a letter to your bank
The interest on your bank accounts, the housing savings plan (PEL) or the term account is subject to rigorous taxation. 30% of your income are levied in the form of a single flat-rate levy (PFU), including 12.80% income tax and 17.20% social security contributions.
This sampling is carried out in two stages. First, a deposit is taken at source when interest is paid. Then, a regularization takes place during the annual income declaration. But did you know that it is possible to be exempt from this deposit?
Ile-de-France motorists facing this unexpected speed reduction on the A12 and A13
Conditions to benefit from the exemption
To be eligible for this exemption, your household must have little or no taxation. Indeed, if your reference tax income (RFR) does not exceed 25,000 euros for a single person or 50,000 euros for a couple, you can avoid the 12.80% deposit.
This request must be sent to your bank before November 30, 2024 to be valid for 2025 interest. Attentionposting the letter on November 30 would be out of time, because it is the date of receipt that counts.
How to make the request
The process is simplified by the use of a sworn declaration. Banks often provide a pre-filled template, but it is possible to write your own application. This must certify that your RFR is below the required thresholds.
The tax on Google and Facebook will apply from January 1, 2019
For dividends, the procedure is similar but the ceilings are higher: 50,000 euros for a single person and 75,000 euros for a couple. Make sure you use the correct amounts for your situation.
| ???? Dispense | Send a request to your bank to avoid the 2025 tax installment. |
| ???? Deadline | Make sure your application is received before November 30, 2024. |
The annual declaration and its implications
The advance payment exemption does not change the final income tax amount. It simply allows you to avoid paying this deposit. During your annual declaration in spring 2026, you will decide whether to opt for the flat tax or the progressive scale.
The regularization of the final income tax for 2025 will take place in the summer of 2026. This crucial step must not be neglected.
Conclusion with open question: Will the simplicity of this approach encourage you to act now to reduce your future tax burden?
