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Missing info on taxation to evaluate job offer

Last activity 25 September 2016 by Dj3go83

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Dj3go83

Good morning everybody.
I'm originally from Italy and currently expat in the Netherlands.   :)
As I'm evaluating an important job offer in France, I would like to ask your support to clarify on taxation.  :/

I ancitipate the question here for whom would not like to read the entire long post: Can anybody confirm if the income tax has to be calculated on total Salary already net from social security tax or both social security and income tax are to be calculated on full gross salary?

This should be quite a simple info for who's already living in France, but for some reason, despite all my readings, and even asking some people i know in France, I couldn't manage to get clarity. I really think that experts in this forum can help me giving a final answer.

In evaluating the job offer in Paris, the head hunter has given me an idea of net salary that in my opinion, after all my reading and calculation, is wrong (too low). I would really avoid to lose an important job offer because of inaccuracy on the info.

So, I understood in France there are (cut sharp) 2 big taxes to pay: 1 is social security (which I understood is approx 25%, that is already taken by employer in payslip) and one is Income tax (which is paid via a tax return and is built in tiers like many countries).

The key info I'm missing is: The income tax is to be paid on the total gross salary or on the salary already net from social security (e.g. the net salaries in the payslip?

From all my research, including specialized sites like KPMG and French-property, I really got the impression that the income tax is to be paid after deducting social security.

A simple example:
Assume a salary of 50.000

- Deducting social security (25%) it would get to 37.500. This is the base for income tax
- The due income tax, based on 2016 tax rates (in the ranges of 0%, 14% and 30%) would be 5.600
- The remaining is the net salary, so 31.9, which divided 12 months equals approx 3.200.

Is this correct and complete with no other tax due after this? (except habitacion, TV etc..that are fine)

Because the alternative to this is that both social security and income taxes are all based on the full gross 50.000 and this of course would make the taxes much higher.

I also heard that there is a deductible 10% that is automatically applied to salaried employess, but this is not the core of my request.

So as per my original question: Can anybody confirm if the inncome tax has to be paid on Salary already netted from social security tax or both social security and income tax are to be paid on full gross salary?

This is really the key missing info I need to properly evaluate the job offer.
Thank you so much in advance for your help!
D.

phipiemar

Hello,

The answer is simple but you will not like it. The taxation is made on the annual net income. According level of your annual gross income, you have to deduct contributions to social security and deductions from the family (married, children) as well as deductions for mortgage loans. When you have done well all your calculations, the state takes its share of what's left you ...

The 2016 scale on revenue of 2015 is the following:

Intervals of taxable net income 2015 (EUR)              Tax rate (%)
Up to 9700 euros                                                                     0%
9 700-26 791 euros                                                               14%
26 791-71 826 euros                                                             30%
71 826-152 108 euros                                                          41%
Over 152,108 euros                                                              45%

Dj3go83

Good morning and thank you for your feedback!  :)

Actually I don t dislike your answer too much  :)
I m absolutely aware that the state will take its share, and that is what I understood is income tax.

What I wanted to understand was if the social security taxes are deducted before income tax, and therefore the bad for income tax is lower than the total salary gross.

From your words it looks I understand yes, am I right? Please let me know and many thanks again  :)
D.

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