16 June 2017 Law firm clients: Implementation of France's withholding tax expected to be postponed by one year The French Prime Minister, Edouard Philippe, recently announced a one-year delay in the implementation of a French withholding tax: this will now enter into force on January 1, 2019. This decision must be confirmed by a formal vote of the French Parliament and this is expected to take place after a new Parliament has been elected in June 2017. The vote itself will take place in either July or September 2017, and the law will appear in the amended Finance bills for 2017 and 2018. Numerous representatives of both large and small French companies have expressed concerns regarding the reform to the operation of income tax, which will increase the administrative burden for employers across the board. The reform will give employers, including certain law firms, the responsibility for ensuring the confidentiality of the employees' tax rates, while also potentially exposing them to penalties for non-compliance and under-withholding. A Tax Alert, prepared by EY's People Advisory Services group, provides additional details.
Document ID: 2017-0974 | |||||||
