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Income Tax - How are deferred income taxed?

Verified 07 April 2022 - Legal and Administrative Information Directorate (Prime Minister)

Deferred income received in 2021

Deferred income is income that you earned in 2021, but that is the amount you earned in 2020 or before (in one or more years). The offset should not be your fault. For example, a salary or progress reminder.

These revenues were subject to withholding tax like other revenues.

On your 2022 return of 2021 income, you do not have to report it with your business income, but as exceptional income, regardless of the amount.

You can request that these revenues be taxed according to quotient system.

The quota system avoids the progressivity of the scale tax.

It applies in 2 steps:

  1. Add one-quarter of exceptional income to regular income
  2. Multiply by 4 the corresponding tax supplement

Exceptional income tax is paid at one time.

You are required to enter the total of these revenues on page 3 of return No. 2042 C (line 0XX).

You must detail the amount and nature of deferred income to be taxed on the quotient, collected by each member of the household by one of the following means:

  • Within the framework of the
  • On free paper attached to Declaration No. 2042

The 2022 2021 income tax return commenced on April 7, 2022.

The deadline varies depending on whether you file your return on paper or online.

Online Declaration
Deadline to file your tax return online

Department

Reporting deadline

1 to 19

Tuesday 24 May 2022 at 23:59

20 to 54 (including 2A and 2B)

Tuesday 31 May 2022 at 23:59

55 to 974/976

Wednesday 8 June 2022 at 11.59pm

Non-residents

Tuesday 24 May 2022 at 23:59

2022 Online 2021 Income Statement

Paper Declaration

The tax return must be filed before Thursday 19 May 2022 at 23:59, including for foreigner residents.

Deferred income received in 2022

Deferred income is income that you receive in 2022 but that corresponds to the remuneration for activities you performed in or before 2021 (over one or more years). The offset should not be your fault. For example, a salary or progress reminder.

These revenues are subject to the withholding tax as are other revenues.

However, you do not have to report them on the 2022 2021 income tax return.

You will have to report them on the 2023 income tax return with the Notice No. 2041-GH on exceptional or deferred income , irrespective of their amount.

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