What is tax reference income?
Verified 01 January 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.
It is also used for certain tax benefits.
It is used, for example, for local tax exemptions, particularly for property tax.
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.
The tax reference income is calculated by the administration in several steps.
The tax reference income is calculated after the following steps:
- 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)
- Calculation net income, i.e. the total gross income from which deductible expenses (e.g. alimony, retirement savings) are removed
- 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)
- Income tax: return and incomeService-Public.fr
- Income tax: deductions, reductions and tax creditsService-Public.fr
- Income Tax - Annual Income Tax ReturnService-Public.fr
- Tax SiteMinistry of Finance
- 2021 Practice Brochure - 2020 Income Tax ReturnMinistry of Finance
- Income tax: information leafletsMinistry of Finance