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 power.er 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 1.er 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.