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France to Press Ahead With Income Tax Withholding Reform

  • French taxpayers to start using pay-as-you-earn levy in Jan.
  • Philippe sees no ‘psychological effect’ of reform on taxpayers
Edouard Philippe

Edouard Philippe

Photographer: Marlene Awaad/Bloomberg

French Prime Minister Edouard Philippe will press ahead with a pay-as-you-earn income tax withholding system starting in January, ending a week of debate over the risks and merits of the reform.

“I can confirm that we will start income tax withholding as of Jan. 1, 2019,” Philippe said on TF1 television evening news show, adding that the revision, which took two years of study and tests before implementation, “was technically complex” to set up. “For taxpayers it will be simple to use,” he added, citing simplification examples for charity donors or retired workers.