Lower caps on the income tax reduction for taxpayers resident in the overseas departments
Article 16 of the 2019 Finance Act lowers the caps of the income tax reduction provided for in Article 197 I 3 of the General Tax Code for taxpayers resident in the overseas departments: from €5,100 to €2,450 in Guadeloupe, Martinique and La Réunion, and from €6,700 to €4,050 in French Guiana and Mayotte. The default withholding-tax rate grids are adjusted. The measure applies to income received from 1 January 2019.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
According to the preliminary assessment, the budget gain is estimated at €70m per year at cruising speed (€23m in 2019, €117m in 2020 owing to the withholding-tax timetable).
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne