green light from the national Assembly and the Senate. The exceptional measures of the government to appease the country have adopted this Friday by the parliamentarians. These have validated the wide range of proposals announced by the president of the Republic, namely the tax exemption of overtime, the exemption extended to higher CSG for retirees and the ability for companies to pay an “exceptional bonus” of 1000 euros, exempt from all social security contributions and income tax for their employees-paying up to 3600 euros. The entry into force of these measures will be spread out from January to July 2019. Here are the details and schedule.
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JANUARY
• The extra hours’ défiscalisées and désocialisées
The executive were already planning to remove the 1 September 2019 employee contributions on overtime hours. The date has finally been brought forward to 1 January. The amounts received will also be tax-exempt on income of up to 5000 euros net per year and therefore excluded from the calculation of the levy to the source. All employees, including civil servants, will benefit from this device.
• The automatic increase of the minimum wage (smic) 1.5%
This upgrade mechanics, which will take place on the 1st of January, will, in gross, the hourly minimum wage from 9,88 to 10,03 euros and the minimum monthly 1498,47 to 1521,22 euros for a full-time, an increase of 22,75 euros.
• Freeze taxes on fuel
The taxes on fuel will in principle be frozen until 2022. This means removing the increase, originally scheduled for January 1, 2019, of 3 cents on gasoline and 6 cents on diesel, and in total, by 2022, of 10 cents on gasoline and 19 cents on diesel. Concretely, the gel relates to the internal Tax on the consumption of energy products (TICPE), the domestic Tax on the consumption of natural gas (TICGN) and the domestic Tax on the consumption of coal (TICC). The convergence of the taxation of diesel with that of gasoline and, for the professionals, the alignment on the taxation of individuals taxation of diesel fuel entrepreneurs in non-road (GNR) are removed to 2019.
• Freezing of tariffs of electricity and gas
These tariffs, which were to increase in the beginning of the year, will not increase until next summer. Regulated prices of gas are even lower for the second time in January, after a first decline in December, due to a decline in prices on the wholesale market. The government has asked Engie to take measures to avoid an increase in regulated tariffs for gas for the months of February to June 2019. And “the tariffs of electricity, then they should automatically increase, will not increase”, said the minister of public Accounts, Gérald Darmanin.
• Check energy
January 1, the number of beneficiaries of the cheque energy, this grant to help households to manage their energy bills or to perform work in energy savings, will benefit 5.6 million people (up from 3.6 million currently). But the world will not collect the same cheque. The 2 million French additional eligible will receive aid ranging from 48 to 76 euros, depending on the composition of the household. People who already benefit from it will have their cheque increase of 50 euros, they will receive between 98 and 277 euros, depending on their income and number of occupants.
• Doubling the premium to the conversion
January 1, 2019, will also force the creation of a “super premium 4000 euros” to the destination of 20% of the French the more modest looking to buy a new or used vehicle. Today, for a home non-taxable wishing to buy an electric vehicle or be a vehicle thermal Crit’air 1 or 2, new or used, it rises to 2000 euros. The State thus add 2000 euros to the pot.
• The scale of mileage allowances revalued
from the beginning of 2019, the “big riders” will benefit from a gesture of tax. The system of mileage allowances will be revalued by 10% for vehicles 3 horses tax (CV) or less, and 5% for cars with 4 HP. This will allow employees concerned to reduce a bit more the amount of their tax.
• Exemption of aid to transport
The entry into force of the exemption of aid to transport is put in place by communities to intervene upon the taxation of the income of the year 2018, instead of January 1, 2020, as was originally planned. This exemption relates to the assumption by communities of the costs of fuel or power to electric vehicles for employees to travel between their home and their place of work, “in the limit of 240 euros per year”, or 20 euros per month. Such assistance is offered in the region of the Hauts-de-France. It is addressed to people who live to at least 30 km from their place of work and who have no other choice than to use their vehicle to get there. The extension to the ridesharing assistance, optional paid by the employer is also advanced to this date.
• A fee Gafa
Without waiting for its adoption at the european level, France will levy from 1 January next year a tax on the advertising revenue of the giants of the digital companies like Google, Apple, Facebook, Amazon, etc), which is expected to bring in 500 million euros. The government relies on this revenue to finance part of the social measures announced in response to the wrath of the “yellow vests”.
FEBRUARY
• bonus activity adjusted for employees close to the minimum wage (smic)
the payment of the premium of activity improvements will be effective on 5 February. According to the government, 5 million tax households (from 3.8 million today), will be 90 euros per month. A big half of those paid the minimum wage (smic) and of the populations whose incomes are slightly higher are concerned. For example, single people without children touching 1560 euros net will be able to benefit from it, such as the single mothers whose income reaches € 2,000. The self-employed and civil servants, whose salaries are close to the minimum wage, are also concerned.
MARCH
• exceptional Bonus of € 1000
No social security contributions nor income tax: companies will be able to verser until march 31, this premium “duty-free”, fully exempt up to € 1000 and reserved for employees who are paid less than three times the minimum wage (Smic, or 4563,66 euros gross in 2019). The employer may decide of the premium unilaterally until 31 January. Then, and before march 31, he will have to negotiate an enterprise agreement.
JULY
• Cancellation of the increase of the CSG to 30 % of retired people
In 2019, the pensioners whose pension income is less than € 2000 for a single person will carry a rate of the CSG of 6.6 %. Only 30% of retirees will retain the highest rate of 8.3%. They will pay the first six months, the same rate as in 2018 and will be repaid no later than July 1, 2019 of the overpayment, the time to “modify” information systems” of the pension funds.
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