Précompté

Précompté is a French term that refers to a tax or contribution that is withheld at source from a payment made to an individual or company. This means that the payer deducts a portion of the amount due and remits it directly to the relevant tax authority on behalf of the recipient. This system is common in many countries for various types of income, such as salaries, dividends, interest, and royalties.

The purpose of précompté is to ensure timely collection of taxes and to simplify the tax administration process. It can also help to prevent tax evasion by ensuring that tax is paid as the income is earned. The specific rates and rules for précompté vary depending on the type of income, the residency status of the recipient, and the applicable tax treaties.

For individuals, précompté is most commonly seen in the form of income tax deducted from wages by an employer. This is often referred to as withholding tax in English-speaking countries. For companies, précompté might apply to payments made for services rendered by a foreign entity or to withholding taxes on dividends paid to non-resident shareholders. Understanding the concept of précompté is important for both payers and recipients of income to ensure compliance with tax regulations and to accurately calculate net income.