The tax authorities will come and dig into the savings of millions of French people in a few days.
If December is the month of celebration with the end-of-year celebrations, it is also a period when expenses are more numerous than usual. Between gift purchases, food costs, but also the various tax levies that occur around Christmas (income, property or even housing tax), these are not the calmest days for finances.
Beyond all these expenses already known to the general public, some are added and are much more discreet. Once all the above deadlines have passed, a new levy will arrive but few French people will realize it while millions of them are affected.
In fact, the debit will not appear on the usual checking account but on one or more of your savings accounts. Every year, on December 31, banks pay the interest earned during the year for placing money in these accounts. Around a hundred euros, as a rule. But taxes are sometimes payable on this interest received.
The tax authorities, with the assistance of the bank, automatically make a deduction, on the same date, to pay the taxes due on the interest. Overall, 17.2% or 30% of these amounts are taken. This varies depending on contracts and personal situations. These sums are withdrawn for social security contributions and, sometimes, in addition, for income tax.
Several savings products are affected by this automatic tax payment. These include life insurance, Housing Savings Plan (PEL) and Housing Savings Account (CEL). On the account statements for these products, a notice entitled “Social deductions” and, possibly, “Mandatory direct debits” will appear. For example, for 100 euros of interest generated on a PEL, 17.20 euros are deducted for the CSG, the CRDS and the solidarity levy (Social levies).
On the other hand, the most well-known savings accounts, such as the Livret A, the Livret d’épargne populaire (LEP), the Livret jeunesse or the Livret de développement durable et solidaire (LDDS) are not affected by this levy. . No tax is payable on the interest received.