French households can start declaring their income for 2021 starting this Thursday, April 7. Those who cannot and still file a paper return will have until midnight on May 19 to return it. For those who declare their income online, the deadline is from May 24 to June 8, depending on their department of residence.
Tax notices will be sent between July 25 and August 5 to taxpayers who file their income online, and between July 29 and August 31 to those who have filed a paper return.
The General Director of Public Finances, Jérôme Fournel, was satisfied on Thursday that 87.3% of tax households have made their last tax return online or automatically. “In 2019, we had an internet reporting rate of around 68%”he said during a press conference at the Ministry of Economy and Finance.
In 2021, France had 23.1 million online filers, 103,000 more than the previous year. More than eleven million users have resorted to the automatic declaration.
Mileage scale, tax-exempt premiums… this year’s novelties
Certain measures taken during the last year bring some modifications to this statement. One of the main novelties refers to the kilometric scale, which allows taxpayer households to deduct part of their fuel expenses as professional expenses.
Due to the rise in prices at pumps, the Government has decided to increase this scale by 10%, a measure of concern “the heart of the middle class”, according to the Ministry of Economy. This should affect 4.3 million households that declare their actual costs, of which 2.5 million are actually taxed.
In addition, the tax-exempt purchasing power bonus, known as the Macron bonus, has been extended in 2021. It is tax-exempt up to a limit of €1,000 for any employee earning less than three times the minimum (gross) salary, and up to 2,000 euros for companies with less than 50 workers that have signed an agreement to share benefits or promote the so-called “second line” professions (that is, professionals, excluding caregivers, who have continued to work on construction sites during confinement ). The inflation bonus of 100 euros received from December 2021 by millions of households is not subject to personal income tax.
The Government has also extended the increase to 75% of the amount of the donation of the tax reduction granted by donation to an association that helps the most disadvantaged. This increase also applies to donations to religious associations.
New tax credits appear: the 30% granted for a first subscription to the informative press, or even the 75% (up to a limit of 300 euros) for the installation of an electric vehicle recharging system in a home.
The tax reduction rate for an investment in SMEs is increased from 18% to 25% for investments made from May 9 to December 31, 2021.
Finally, in recent years, “regularly, people who declared children did not request to obtain the scholarships to which they are entitled”, said Thursday Jérôme Fournel. To remedy this, users whose tax household includes one or more children in middle or high school will be able to verify their eligibility at the end of their online return using a simulator.