What is the benchmark tax income?

The reference tax income (RFR) is calculated by the tax services.

It takes into account all the income of a tax shelter, whether taxable or not.

Your reference tax income (RFR) is used to determine whether you are eligible for certain social benefits (for example, college scholarship, the provision of social housing).

It is also used for certain tax benefits.

It is used, for example, for local tax exemptions, in particular for the property tax.

The RFR is also used to determine whether you have to pay the exceptional contribution on high incomes.

Your reference tax income is on the first page of your last income tax notice.

Your benchmark tax income is calculated by the tax authority from your taxable net income.

To get the reference tax income, the following elements should be added:

• Certain tax-exempt income (e.g. tips paid in 2022 or 2023 or remuneration of the employee posted abroad)
• Certain income subject to a withholding tax (e.g. income from movable capital)
• Some deductions deductible (e.g. 40% on dividends)
• Certain expenses deductible from income (e.g. contributions and insurance premiums)retirement savings deducted from total income)
• Taxable real estate gains