FR Customs explained the adjustment of default rate scales' limits for withholding tax.
Main Points
Art 2 of Law 2025-127 of Feb. 14, 2025 on Finance for 2025 provides, for income received/realized from May 1, 2025, the adjustment of the income brackets' limits.
Re the default rate scales for withholding tax, provided for in a to c of 1 of III of art 204 H of the General Tax Code (CGI), based on changes in the income tax scale.
The bracket limits of which are indexed at the rate of 1.8%; the amount of reduction applicable to short-term contracts is updated with the minimum wage increase.
Effectiveness
The adjustment concerns income received/realized from May 1, 2025.
Regulators
FR Customs
Entity Types
Auditor; Corp
Reference
Gd BOI-BAREME-000037, PR, 4/10/2025; Law 2025-127, 2/14/2025; CGI (FR)
