Saturday, 22 January, 2022

Withholding tax: these 35,000 companies that have not sent anything to the tax authorities


39 39. This is the information number concerning the withholding tax that the French can call in case of questions. But is it because the call is billed at 15 cents per minute that 35,000 companies have still not understood that they had to transmit essential information to the tax authorities by January 30? According to Le Parisien, 35,000 companies have still not sent the “nominative social declaration” (DSN), a form which allows the tax administration to know the income of each employee and to calculate his tax rate.

The companies concerned are very small structures in the building, trade or catering sector which employ one or two employees. 40% of them are based in Ile-de-France, 17% overseas. Despite several reminders from Bercy services, they did not send documents on the situation of their employees. Results, 40,000 employees could be affected by a catching-up in spring 2019. By then, the tax administration relies on the new constraints imposed by the system to catch up with latecomers. Because since December 1, employers are now obliged to go through a nominative social declaration to declare social contributions.

Financial penalties

“We thus hope that they will be forced to communicate the information to us,” explains Yann-Gaël Amghar, director of the Central Agency of Social Security Bodies at Parisian. If they do not do so, financial penalties, depending on the number of employees, may be applied even if we remain sympathetic, “he said.

In September, an Odoxa poll carried out for Challenges indicated that 72% of French people said they were “worried” about the reform of the tax at source. Among the reasons for concern, 45% of those questioned fear bugs, 27% a tax increase, 27% longer administrative procedures and 25% fear confidentiality problems

Withholding tax