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The French tax authorities have announced that millions of taxpayers will receive refunds based on their 2024 income tax declarations. Following the closure of the online amendment period at the end of June, final tax notices (avis) will be issued starting July 25. Refund payments are scheduled to commence on the same day and continue through August 1.
Up to 15 million taxpayers are expected to benefit, with average refunds totaling approximately €900 last year.
Why Are Tax Refunds Issued?
Tax refunds arise primarily for two reasons:
1. Overpayment Due to Tax-at-Source Adjustments
France’s tax system uses a tax-at-source method, where withholding rates are calculated based on the previous year’s income declaration. Changes in a taxpayer’s financial situation during 2024, such as a job change or decreased income, may lead to overpayment of taxes at source.
Tax authorities typically only reconcile these changes after reviewing the current year’s declaration filed in spring 2025. When an overpayment is identified, refunds are issued accordingly.
2. Adjustment of Tax Credits
Another common reason for refunds is the reconciliation of tax credits. Approximately 60% of tax credits for the 2024 tax year are paid in January 2025 based on the prior year’s income data. The remaining credits are adjusted and disbursed after the latest tax declarations are processed.
This cycle repeats annually until the taxpayer no longer qualifies for the credits.
Important Information for Taxpayers
To ensure timely receipt of refunds, taxpayers must verify that their bank account details on the French tax administration portal are accurate and up to date. Changes can be made easily in the taxpayer’s personal online account.
For those who filed paper tax returns or whose bank information is not registered with the tax authorities, refunds will be sent via cheque to the official mailing address on file.
Conversely, taxpayers who underpaid taxes during 2024 will receive direct debit requests for outstanding amounts between September and December 2025, depending on their owed sum.
Practical Takeaways for Accountants and Tax Professionals
- Advise clients to confirm bank details promptly to avoid delays.
- Monitor incoming tax notices from July 25 onward.
- Prepare for the adjustment of tax credits and corresponding refunds or payments.
- Inform clients about the direct debit schedule for any outstanding tax liabilities.
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