Reform of Income Tax in France: One Month Left to Comply with New Obligations

After 60 years of fierce debate, France has eventually decided to reform its income tax system and shift the burden of income tax collection from the State to employers, thus aligning itself with all other EU Member States and most Western countries. As of 1 January 2019, employers will thus be under an obligation to collect income tax by deducting it from their employees’ salaries and paying it to the French Tax Department.

This major development in France comes with a number of new obligations for employers and raises several practical and legal issues. It is thus important to anticipate and be prepared for this substantial change. We have prepared a briefing setting out the details including data protection issues, what changes payroll need to make and what information employees should have.