Real estate crowdfunding -
Flat Tax: up to 30.5% less tax on income from unlisted investments
April 5, 2018
The wealth tax reform introduced by the government at the beginning of 2018 allows for a reduction in taxation on income from movable assets, which are now taxed on the basis of a "flat tax" of 30% whereas the tax rate could previously be as high as 60.5%.
Here we explain the main principles of this new taxation method.
What's changing : since January1, 2018, income from movable capital -
are now taxed at the single flat rate (PFU) of 30% or, on option, at the progressive income tax scale (applicable until December 31, 2017).
The 2 tax "moments" of your investment:
Income from assets is subject to a single flat-rate non-dischargeable deduction (PFUNL) of
for a total of 30%.
In practice, the debit is always made by the paying institution, in this case by the platform.
You were exempted from the flat-rate levy? It is still possible to ask to be exempted from the PFNL when the reference tax income does not exceed 25,000 € or 50,000 € for a couple, for bond coupons. For dividends, the thresholds have been raised to €50,000 and
75.000 € for a couple. The application must be made by November 30 at the latest.
In principle, the single flat rate tax (PFU) of 12.8% (30% with social security deductions of 17.2%) applies. The PFUNL deducted at source as an advance payment is deducted from the income tax.
In effect, because of the alignment of the UBIT rate with the UBIT rate, this is equivalent to paying tax at source.
If you are in the 14% tax bracket, opt for the progressive scale
The taxpayer has the possibility to opt for the progressive income tax scale according to the following modalities:
When the option is taken, the income is taxed as before at the marginal income tax rate, with a 40% deduction on dividends.
In order to calculate how much this new mechanism will increase your return on this type of investment, we advise you to contact Raizers investment consultants: [email protected].
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