Finance Bill 2023: All that will change

The 2023 fiscal bill includes numerous economic reforms to boost French consumption. We present a summary of the main directions implemented in this direction from January 1.

raising the minimum wage

The SMIC is traditionally revalued in year 1, based on inflation and purchasing January every year. This will not be an exception to the rule, with a total increase of €30 expected for a full-time employee, i.e. an estimated monthly salary of €1,709.28.

According to the Ministry of Labour, the hourly minimum wage should rise from 11.07 euros in 2022 to 11.27 euros in 2023, an increase of 1.81%.

revaluation of income tax

As every year, the income tax is reassessed according to the increase in consumer prices, except for tobacco. Last year, the growth was 5.2% and it is expected to continue in 2023.

Inflation, which has affected the French economy in recent months, should be included in the calculation to neutralize some of the effects. The increased rate must be indexed and taken into account for the 2023 income tax.

A few weeks ago, the Ministerial Representative for Public Accounts, Gabriel Attal, estimated with this device “€6.2 million to be returned to the French”.

mitigation of withholding tax

The Finance Bill 2023 also includes a reduction in the threshold for levying taxes from 10% to 5%. That is, it will be easier for taxpayers to reduce their rates in case of a decrease in income during the year.

abolition of housing tax

In 2022, after the abolition of the audiovisual duty, the housing tax on the main residence will be removed from January 2023. Gradually reduced from 2018, in 2022 it still belongs to the richest 20% of French families.

increasing the tax on vacant apartments

In the 2023 budget bill, there is an increase in tax rates on vacant apartments, from 12.5% ​​to 17% for the first tax year, and from 25% to 34% for subsequent years.

It should be noted that this tax applies to the owners of residential houses that have been vacant for more than two years. From 2023, the system will also apply to municipalities with a population of more than 50,000 that do not belong to the sustainable urbanization zone, as before.

Another criterion of this tax, that is, the imbalance between demand and supply of housing, has also been changed for next year. Some cities can be considered in the “congested zone”, ie with a high proportion of second homes, high rents or purchase prices of older apartments. In this case, the housing tax may be increased for second homes.

Municipalities must discuss the taxes applied to their territories from 2023 until February 28.

Financial contribution for CPF

An amendment in the Finance Bill 2023 introduced a financial contribution from a personal training account (CPF) holder when they apply for a training promotion from this mechanism.

It should be noted that job seekers will be exempted from this contribution, which is scheduled to come into effect in 2023.

An increase in the rate of PEL

Economy Minister Bruno Le Maire announced in recent weeks that the Payroll Rate for the Housing Savings Plan (PEL) would rise from 1% to 2%, unchanged for 22 years.

er January 2023.

increased child care tax credit

According to Article 200 of the General Tax Code, parents who take care of their children under 6 years of age can take advantage of the income tax deduction to cover their expenses.

By 2022, it was possible to recover up to half of childcare costs, with a maximum credit of 1,150 euros set at 2,300 euros per child. Next year, the maximum tax credit will be €1,750 per child under the Finance Bill for 2023.

Disability adult benefit

On the table for several years, the deconjugalization of Disability Allowance (AAH) will become official in 1 October 2023. About 160,000 beneficiaries, 50% newcomers, will benefit for an average profit of €300 per month.

It should be noted that this assistance allows the spouse’s income to no longer be taken into account when calculating the rights of a disabled adult.

Extension of energy tariff shield

The price shield introduced by the government on October 27 will be extended in 2023. From October 1, the price increase will be limited to for gas in January 2023 and from 1er next February for electricity.

An extension of MaPrimeRenov

The MaPrimeRénov system, created in 2020, will be extended in 2023, in connection with the work carried out in the main residence of the French, and will benefit from an envelope of 2.5 billion euros next year.

easier access to electric vehicles

To ease consumers’ access to electric vehicles, the government has bet on a new leasing system that makes it easier to acquire or lease these greener vehicles.

At the same time, the state aims to exceed 100,000 electric charging stations in France next year.

Strengthening the cultural transition

Pass Culture, created in 2019, is a device for accessing cultural activities for young people, presented as a free and geolocated web application.

The 2023 financial bill will strengthen this system, the budget is expected to increase by 9.5 billion euros. The Culture Pass will also see use from the start of the 2023/2024 school year to grades six and five.

name change is free

It was previously set at 110 euros, the price of publishing name change requests in the Official Journal will be free from 1 next January.

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