Savings books: here is the email not to be forgotten to avoid the tax levy!

It turns out that you have a tax levy every year. The latter occurs because of your booklets. In fact, it appears that this levy is actually a tax warehouse interest on your bank investments. And if the latter bores you, it seems possible not to suffer from it. Therefore, you can no longer have it simply by writing a letter to your bank. You must know, however, that the latter must be done by the end of November. And in this way, you will not have this direct debit for the following year. We explain everything to you here.

Simplified savings accounts

Quite often, the cards remain difficult to manage. In this way, taxes and taxation are not topics that many Frenchmen carry in their hearts. Yet as far as savings accounts are concerned, they seem to have seemed very simplified. Indeed, taxation appears to have become easier following the reform of the single flat rate levy (ELT). The latter is also called a flat tax and has been in place for four years now.

Thus, except for special savings accounts, or specific plans, the reform simplifies many things. In fact, apart from therefore for envelopes exempt or partially exempt from PEA or even life insurance, booklet A, LDDS, etc. Therefore, taxation appears to be a tariff. It remains the same for all earnings that come from finance capital. So she remaining 12.8% income tax. But this also rises to 17.2% in social security contributions. So in everything this leads to 30% total.

Thus, the flat tax on savings books is spreading on many issues. Among these, the term accounts with stock market income, without forgetting the classic banking books. This also applies to household savings such as PEL or even CEL. These appear to have been open since January four years ago. And in fact they remain too subject to tax from the year of ownership.

The flat tax

Therefore, for savings accounts, the flat tax is not collected all at once. It turns out that it actually takes place in two stages and not one. Just like withholding tax wages and other income from work. First, there is an initial collection from the source at the very moment of the payment of interest and dividends. This is what appears to be called the tax rate. In a second time, there is a regularization that comes the continuation of the annual tax return. Assuming that the latter has already appeared taken.

However, it seems possible not to have to pay this tax deposit for savings books. As long as your house is small, even not taxed. So you may not have to pay this deposit which remains at 12.8%. However, it already seems too late for this year. Therefore, these will be collected at the end of December.

On the other hand, it is not too late not to have to pay the deposit for the savings books for next year, but time is running out. So, if you submit an exemption application this fall, you may be exempt next year. So, for that the request is accepted and validmust be sent to your bank by November 30 this year.

The waiver of the deposit

On the other hand, even if you do it by November 30th of this year, you will be exempt the tax installment of the savings books for the following year. But that doesn’t mean it will be the same in the years to follow. It is in fact necessary to renew this request for exemption every year and in the same period. It should also be taken into account that this must be done by November 30th, thereby. It is best to take a few days in advance if there are ever any mailings with the post office.

Therefore, this request remains subject to certain conditions. In order not to have to pay this tax deposit for savings books, certain conditions must be met. So it’s called “request for exemption from the 2023 tax levy“,”request for exemption from direct debit” or “request for exemption from the flat-rate levy of non-contracting“. And it appears to remain in the form of an affidavit.

Therefore, for interest on savings accounts, PELs or other fixed income investments, the reference tax income must be declared. The latter can be found in this year’s tax notice. Conditions remain like them it must not exceed 25,000 euros for one person and 50,000 for a couple.

On the other hand, as regards dividends from the same savings accounts or from other fixed investments, the reference tax income it must not exceed € 50,000 for a single person and € 75,000 for a couple.

The deposit waiver letter for savings accounts

So, although many banks offer a pre-filled template of this type of letter, here is an example. By submitting this, you may no longer have a savings account tax deposit.

I, the undersigned, (…),

furthermore (…),

asks to be exempted from the levy provided for by article 125 A of the CGI I and certifies on my honor that the reference tax income of my family unit that appears in my tax return ascertained for income prior to last year prior to payment of the products fixed income investment and similar earnings mentioned in I of the aforementioned article is less than:

– € 25,000 (for single, divorced or widowed taxpayers);

– € 50,000 (for taxpayers subject to joint taxation).

At (…), on (…),

(Date and signature)“.

Important information

You still have to keep in mind that what you will not give not as a deposit will be taken later. In fact, it is only a tax installment for the interests of your savings books. So you will not advance the amount. But in the end, the final amount always remains the same.

As for the interest for next year, it has yet to be declared your savings accounts in the spring of 2023. Subsequently, it will be up to you to choose between flat tax or progressive scale. In all cases you will regularize the tax defined on the next year’s income in the summer of 2024.

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