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What is tax reference income?

Verified 01 janvier 2022 - Legal and Administrative Information Directorate (Prime Minister)

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

It shall take into account all income of tax centrewhether or not they are taxable.

The tax reference income (RFR) determines whether you can benefit from certain social assistance (for example, college scholarship, allocation of social housing).

It is also used for certain tax benefits.

It is used, for example, for local tax exemptions, particularly for property tax.

  Please note : in general, the RFR that appears in your last tax notice is used. For example, the RFR 2021 (based on your 2020 income) for the allocation of social housing in 2022.

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

The tax reference income is calculated by the administration in several steps.

The tax reference income is calculated after the following steps:

  1. Calculation gross income, i.e. income of the year (salaries, pensions, land income...) from which some of the income is taken away discounts (for example, 10% on real wages and pensions or costs)
  2. Calculation net income, i.e. the total gross income from which deductible expenses (e.g. alimony, retirement savings) are removed
  3. Calculation taxable income, i.e. total net income from which special allowances (e.g. abatement for the elderly or disabled) are removed

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

  • Certain tax-exempt income (for example, tips or remuneration of the employee seconded to the foreigner) or subject to a levy (e.g. income from movable capital)
  • Certain allowances and expenses deductible from income (e.g. 40% dividend allowance)