The tax returns must be subscribed as every year, the deadlines for filing declarations with the tax department are as follows:
* For “paper” deposits (only in certain exceptional cases)
=> Thursday May 19th 2022 at midnight.
* For taxpayers who submit their 2021 tax return in 2022 through the impots.gouv.fr website, the deadline is set, depending on the department of residence:
=> Tuesday May 24th 2022 for departments N° 01 to 19, as well as for non-residents;
=> Wednesday June 1st 2022 for departments N° 20 to 54;
=> Wednesday June 8th 2022 for departments N° 55 to 974 / 976, as well as for declarations filed in EDI regardless of the geographical area.
The main news concerning the declarations 2042, 2042 C PRO and 2044 are explicated below.
You can also refer to these articles, still relevant today, published in previous years on our website:
- Main categories of revenues to be declared on annual forms n°2042 C, 2042 RICI and 2042 C-PRO
- List of principal forms of income tax declaration in France
- Finance act for 2022 – Main provisions concerning Personal taxation
- Finance act for 2022 – Main provisions concerning Companies
I – News concerning all income statements
Automatic declaration: This automatic declaration aims to exempt some taxpayers from filing the 2021 income tax return as soon as the pre-filled information is accurate and complete. If the taxpayer considers that the information contained therein is indeed correct, this declaration will be automatically validated without action on his part: he does not have to send a declaration. Otherwise, he must modify or correct this information and declare online.
The taxpayers concerned are informed by the tax administration.
Online declaration by electronic means is mandatory: Provided that his main residence is equipped with internet access, the taxpayer must file his tax return online on the impots.gouv.fr website (or in EDI mode), whatever regardless of his reference tax income.
Any new declarant arriving on French territory can declare online: if he does not already have a tax number in France, he can request one from his personal tax department, upon presentation of an identification document.
Pre-filled information on the online declaration: The 2021 income already known to the administration is pre-filled and many information is automatically carried over from one year to the next (marital status of dependents, details of actual costs, childcare costs, certain information relating to property income, etc.). Of course, it is always possible to modify or complete the reported data and add additional information.
Exempt overtime hours are also pre-filled in box 1 GH/1 HH.
Collaborative economy platforms transmit their users’ income to the administration. The amounts of the transactions are mentioned in the online declaration and the taxpayer is accompanied to determine the taxable nature and the type of income concerned.
Remote correction: The remote declaration can be corrected as many times as necessary before the deadline for filing the declaration.
If, however, taxpayers notice, after receiving their tax notice, an error on this notice, they can access an online correction service “Correct my 2021 online declaration”, from their “Individual” space.
Declaration in EDI mode: The taxpayer is authorized to transmit the declaration of his income in EDI (Electronic Data Interchange) mode, through third parties, such as an accountant, for example.
II – Update concerning 2042 and 2042 C form
Revaluation of the mileage scale: It is revalued by 10% for the taxation of income for 2021, in order to take into account the sharp increase in prices (mainly fuel).
In the event of an option for the deduction of actual costs, the tax authorities will however automatically apply the flat-rate deduction of 10% if this proves to be more advantageous.
Exemption for overtime worked in 2021: They are exempt from income tax, within the limit of an annual ceiling of €5,000. The exemption applies to remuneration and elements of remuneration benefiting from the reduction in employee contributions.
Exceptional purchasing power bonus (PEPA): It was renewed in 2021 and 2022. It remains exempt from income tax within the limit of €1,000 and subject to being paid between June 1st 2021 and March 31st 2022 at the latest.
Teleworking allowances and costs: Professional expenses related to teleworking from home in 2021 may have given rise to the payment of special allowances by the employer. These allowances are deemed to cover non-current costs and are exempt when they are used in accordance with their purpose.
Inflation allowance: It is exempt from income tax up to €100 per month.
Income from securities and movable capital
PFU of 12,8 % or 7,5 %: Since January 1st 2018, this income is automatically subject to the single flat-rate deduction (PFU) of 12.8%. This rate is reduced to 7.5% for income relating to payments made from September 27th 2017 on capitalization or life insurance contracts of 8 years and over, for the fraction of outstanding amounts, net of income, lower or equal to €150,000 on December 31st of the year preceding the collection.
The deduction made at source by the paying institution as a deposit on the final tax is in principle pre-filled box 2 CK of the 2042 declaration.
Taxpayers may, on an express and irrevocable option, submit this income to the progressive scale of income tax. To exercise this option, it is necessary to tick box 2 OP of the 2042 income statement, at the latest before the expiry of the deadline for the declaration. This global option concerns all income from movable capital as well as capital gains in 2021.
Temporary exemption from redemptions of life insurance policies to feed the PER: Until December 31st 2023, any redemption of a life insurance policy of more than 8 years (or 6 years) is subject to a doubled tax allowance (€ 9,200 or € 18,400) provided that the sums are reinvested in a retirement savings plan and that the purchase is made at least 5 years before retirement. To benefit from this temporary exemption scheme, lines 2 RA to 2 RD of the 2042 C declaration should be entered for the proceeds received on redemption, according to the date of the payment to which they relate.
Gains from the sale of securities, social rights and similar gains: These capital gains realized by persons who have their tax domicile in France are automatically subject to the PFU of 12.8%. However, the taxpayer can opt for the taxation of his capital gains on the progressive scale of income tax. The taxpayer who intends to exercise this option must tick box 2 OP of declaration n°2042, at the latest before the expiry of the deadline for the declaration. This option is global and therefore concerns all capital gains on securities as well as income from securities in 2021.
III – Real estate income update – N° 2044 form
“Cosse” deduction: The finance law for 2022 puts an end, in advance, to the “Cosse” deduction, replaced by a tax reduction for rental investment at affordable rent.
Rent waivers: Exceptional measures have been taken in the context of the Covid-19 pandemic. By way of derogation, and provided that the tenant company has no connection with the lessor, waivers of rent granted by lessors for the benefit of a tenant company, made between April 15th 2020 and December 31st 2021, are not taxable, without the deductibility of the corresponding charges (property charges, loan interest) being called into question. When the tenant company is operated by an ascendant, a descendant or a member of the lessor’s tax household, the benefit of these provisions is subject to the condition that the lessor can justify, by any means, the company’s cash flow difficulties.
IV – Update concerning the income of the self-employed (BA, BNC, BIC) – N° 2042 C PRO form
Lowering of the increase coefficient to 15%: For the calculation of income tax on the progressive scale, the result declared for self-employed, professional and non-professional activities is subject to an increase for companies who do not belong to an approved management organization or do not use the services of a professional accountant.
For 2021 income, the increase is 15%, it will then be reduced to 10% for 2022 income and removed from the taxation of income for the year 2023.
Unified tax and social declarations: The income used as a basis for calculating the social security contributions of self-employed workers is now collected directly from the income tax declaration. Consequently, it is supplemented by a social component. The “social” headings are only present in the income statement accessible online (EFI and EDI). Some of the social headings will be pre-filled with data from the professional tax declaration (if this has been transmitted beforehand). However, it is only an aid, the information can be corrected or supplemented if necessary.
Reductions and tax credits for the self-employed: The 2042 C PRO declaration is supplemented by two new boxes:
- Tax credit for farms not using glyphosate (box 8 WG);
- Tax credit for farms certified as having a high environmental value “HVE” (box 8 WH).
V – Update concerning tax reductions and credits – N° 2042 RICI form
Tax credit for abandonment of rents to a company: Under certain conditions, a tax credit of 50% on 2021 income is eligible for rents abandoned to a company for the month of November 2020. For taxpayers who declare the rents in the property income category, these rent waivers or renunciations must be indicated in box 7 LS of the 2042 RICI declaration.
Taxpayers declaring rents in the BIC, BA or BNC category must submit the 2069-RCI declaration with their income statement if they are taxed according to an actual tax system, or with their overall income statement if they are taxed according to a micro regime, and report the amount of the tax credit in box 8 LA of the 2042 C PRO declaration.
Only rent waivers granted before December 31st 2021 are taken into account for the calculation of income tax for 2021.
Subscription to the capital of “PME, FIP or FCPI”: Under certain conditions, an income tax reduction applies to sums paid to subscribe in cash to the initial capital or capital increases of PME or solidarity enterprises of social utility or to subscribe to FCPI and FIP shares.
The IR reduction rate is in principle 18%. For payments made between May 9th 2021 and December 31st 2021, the rate of the IR reduction is increased to 25%.
Tax credit for the energy transition (CITE): For expenses paid in 2021, the CITE is reserved for taxpayers who own their home and are subject to a means test. The provisions relating to the CITE in its version applicable in 2020 may, at the request of the taxpayer, continue to apply to expenses paid in 2021, on two conditions: the taxpayer must justify the acceptance of an estimate and the payment of a deposit between January 1st 2019 and December 31st 2020.
Installation of charging systems for electric vehicles: Expenses for the acquisition and installation of charging systems for electric vehicles incurred in 2021 are eligible for a tax credit at the rate of 75% up to a limit of €300 per charging system.
The sums must be declared in boxes 7 ZQ to 7 ZT of the 2042 RICI declaration.
First subscription to the political and general information press: Under certain conditions, an income tax credit applies to the sums paid to take out a first subscription, for a minimum period of 12 months, to a newspaper or a publication of or an online news service.
It applies, at the rate of 30%, to the amounts actually paid between May 9th 2021 and December 31st 2021.
The payments must be declared in box 7 PA of the 2042 RICI declaration.
Main measures extended by the finance law for 2021:
- The tax reduction for work in overseas housing, extended until December 31st 2023;
- The tax credit for work in the main residence (personal assistance and technological risk prevention equipment), until December 31st 2023.
Main measures extended by the finance law for 2022:
- The “Censi-Bouvard” tax reduction until December 31st 2022;
- The “Denormandie-ancien” tax reduction until December 31st 2023;
- The experimentation of the “Pinel” device in the Brittany region until December 31st 2024.
All the team of FBA is at your disposal to help you, so do not hesitate to contact us!
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