On 22 September 2021, the Minister of Economy, Finance and Recovery, Bruno Le Maire and the Minister Delegate in charge of Public Accounts, Olivier Dussopt, presented 2022 Finance Bill to the National Assembly. Some of the proposed changes of this Bill are given below:
Withholding tax
The Bill proposed that withholding taxes payments for certain services under Article 182 B of the tax code will be applied to non-resident companies after a flat 10% deduction, provided that the non-resident is in an EU or EEA member state.
Personal income tax
The income brackets of the 2021 income tax scale will be indexed to the 2021 inflation forecast, i.e. 1.4%. The default withholding tax rate grids for 2022 will be aligned with this scale.
Tax credit for personal services
This article restores the tax credit canceled in particular for services rendered outside, when they are included in a set of services including home activities.
VAT
Measures to simplify VAT rules and comply with EU VAT law, including the VAT exemption on imports and supplies to EU bodies for COVID-19, certain aspects of the EU e-commerce rules, and changes in the VAT option to tax rules for the financial sector, allowing the option to be applied by operation rather than globally on all operations.
