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French Income Tax Reform: One Month Left for Companies to Comply with their New Obligations

by Claire Toumieux and Camille Wattrelos

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After 60 years of fierce debate, France has finally decided to reform its income tax system and to 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 which deduct income tax under a Pay As You Earn (PAYE) system. As of 1 January 2019, employers will be compelled to collect income tax through deducting it from their employees’ salaries and to pay it to the French Tax Department.

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