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TAXES

Why you might find extra money in your French bank account this week

When you check your French bank account on Wednesday, you may find a nice surprise from the tax authorities.

Why you might find extra money in your French bank account this week
Fifty euro banknotes in Arras, northern France. (Photo by DENIS CHARLET / AFP)

Millions of people across France will receive a tax rebate either a direct bank transfer or a cheque (by mail) over the next few days. The first round of reimbursements will be sent out on Wednesday, July 24th, and the second will be sent on Wednesday, July 31st.

If you filed your taxes online via the impots.gouv.fr website, then you can expect your reimbursement to be sent between July 24th and 31st. 

Those who filed on paper may have to wait a little longer. They could receive their rebate sometime between July 24th and August 20th, Actu France reported.

READ MORE: 7 top tips for dealing with the French tax office

The most common scenario for people receiving a rebate is salaried employees whose income is deducted at source, but who are entitled to tax credits, rebates or refunds for things like childcare, domestic help or charity donations.

However money may also be sent to people who are found to have overpaid, or who qualify for other types of rebate.

How does the rebate work?

Most people will receive the payment directly into their bank account, as that information should already be shared with fiscal authorities.

It should appear under the wording ‘REMB IMPOT REVENUS’ and it will be coming from ‘DGFIP FINANCES PUBLIQUES’, according to the French government.

To ensure that the reimbursement goes through smoothly, you may want to check your tax account to verify that the bank account information is correct.

You can do this by going to the Impots.gouv.fr website and clicking ‘Prélèvement à la source’ and then ‘Mettre à jour vos coordonnées bancaires’.

Tax bills

Not everyone will be getting money, some people will be getting bills.

For employees this may be because they were being taxed at the wrong rate, or because they have declared extra income in addition to a salary (eg income from rental property including Airbnb rentals) or they received too much in tax credits earlier in the year and now need to pay back a sum.

Self-employed workers will be getting a tax bill based on the income they have declared for the year. This is in addition to their more regular URSSAF contributions.

How to pay

If you owe up to €300, then you will be automatically debited (from the bank account linked to your tax account) on September 26th.

For those who owe more than €300, the payment will be taken in four separate installments. The first will be on September 26th, then October 25th, November 25th and December 27th.

Beware of scams

Fiscal authorities have warned that people should beware of scams circulating around this time of year, as bad actors may be seeking to impersonate the DGFiP (Directorate General of Public Finances). 

These might include false notifications of refunds, accusations of tax fraud, or requests for payment.

The DGFiP has warned people on their website that tax authorities “will never send emails inviting you to visit an online form to obtain a refund without first logging into your authenticated personal space.”

Tax authorities also warned that they only use email addresses with the domain “@dgfip.finances.gouv.fr”.

As for SMS scams, the DGFiP states that it “never sends out text messages for non-payment.”

It advises that “as a general rule, do not click on the links you receive in text messages telling you that you have to pay a bill, fine or tax. If in doubt, contact the relevant department using another channel (via your personal account, by email or by telephone).”

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ENERGY

French electricity bills set to decrease from February 2025

France's energy commission has announced it will delay the revaluation of electricity prices until February 2025, when it expects the cost of electricity to decrease.

French electricity bills set to decrease from February 2025

The French energy regulatory commission (commission de régulation de l’énergie, CRE) had planned to re-evaluate electricity prices for the regulated (flat-rate) tariff plan in August 2024, but this has been postponed to February 2025, according to French daily SudOuest.

The revaluation in February will take into consideration the rise of transmission costs, as well as a predicted decrease in electricity prices, CRE announced on Wednesday.

As a result, the higher transmission costs are expected to be offset by decreased electricity prices, leading what CRE predicts will be a 10 percent total decrease in bills for those on the regulated electricity tariff plan.

What does this mean for household bills?

This change will affect people who are on the ‘regulated rate’ plan, also called the tarif bleu. According to SudOuest, there are 22.4 million of these contracts, including both households and small businesses.

According to Ouest France, this means that for the average French household – who sees annual electricity bills of €2,000 – they would save at least €200.

There are other types of electricity contracts in France who are not included in this change – for example, the peak hours contract, which differs from the flat-rate because it offers a lower price per kilowatt during off-peak hours, and a more expensive one during peak hours.

The 17.5 million contracts (which include households and businesses) that are not on the regulated tariff plan will see an increase in transmission prices from November 1st.

Why the delay?

The revaluation was initially planned for August, but it was pushed back to February at the behest of the French government, SudOuest reported.

The French government, who was at the time concerned with an ongoing political crisis after snap parliamentary elections, was reportedly concerned that swinging prices would be confusing for consumers.

In 2021-2022, amid inflation, post-Covid recovery and the war in Ukraine, electricity prices soared by more than 43 percent, despite a price shield the government put into place.

Therefore, the French government asked that CRE make a decision that “takes into account their recommendations for stability”.

CRE thus decided that they would put the annual transmission update into force on November 1st, but “in the interest of price stability and clarity” they promised to postpone the increase for households and very small businesses on regulated tarif plans until February, when the fall in electricity prices is expected to occur.

How is the electricity price calculated?

In France, in addition to the type of plan you have, the final price of electricity depends on three components – transmission costs (or the tarif réseau), the price of the electricity itself (which includes marketing costs, the supplier margin and energy supply costs), and the tax applied.

As for the February revaluation, it is the tarif réseau component that will increase by one percent from February 1st, but the CRE believes this will be absorbed in an overall decline in the price of electricity, leading to 10 percent drop in flat-rate bills.

The price of electricity still remains higher than pre-2021, when the cost was between €40-50 per megawatt hour (MWh).

Prices are currently stabilising around €60-70 per MWh, which is far lower than peaks seen in 2022.

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