Global gross income: definition, calculation and abatements

Global gross income (RBG), as well as global net income and net taxable income, is an essential element of measurement to understand the calculation of income tax. What income is it made up of? How to calculate it? Where to find it? Definition, calculation method, abatements … Zoom on the RBG.

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What is global gross income (RBG)?

Essential tax concept in the calculation of French income tax, global gross income represents the sum of all income received by a tax household before application of the various deductions and tax abatements. It therefore constitutes the basis from which the elements reduce the basis of taxation are applied (abatements, various deductions).

What is the interest of global gross income in calculating tax?

The RBG serves as a basis for determining the overall net income (RNG), after applying the offsets mentioned. The RNG, after imputation of specific deductions, constitutes the net taxable income (RNI) which is then subject to the progressive scale of income tax and allows the calculation of the marginal tax rate. The RBG is also used to calculate social security contributions. Understanding how to calculate and adjust the RBG allows taxpayers to better manage and optimize their tax burden.

How to calculate global gross income?

Income taken into account in the calculation

Global gross income results from the sum of all income received by the tax household. Must be included in its calculation the following income:

• Wages and treatments.
• Pensions and annuities.
• Property income.
• Independent activity income that is industrial and commercial profits (BIC), non -commercial profits (BNC), agricultural profits (BA).
• Income from movable capital (investment products.),
• Various capital gains and gains.

Example of calculation of the RBG for a married couple without children

Imagine a married couple without children who declares 50,000 euros in wageswho touches 5,000 euros in property income And 2,000 euros in movable capital income (investment income). During the establishment of its income tax return for the corresponding calendar year, its RBG will be equal to 57,000 euros (50,000 +5,000 +2,000 = 57,000 euros).

Due to the 10% reduction for professional costs (50,000 -10% = 5,000 euros), its overall net income will be 52,000 euros (57,000 – 5,000 euros).

Imagine that he contributes 2500 euros to retirement savings (PERP), his net taxable income (RNI) will therefore correspond to 52,000 – 2,500 = 49,500 euros. It is on this sum that its taxation will be calculated in application of the progressive scale and according to its number of shares (in this example, 2).

What abatements apply to RBG?

Different deductions and deductions can be applied to the RBG, in particular:

• Developments for the elderly or invalid.
• Food pensions paid under certain conditions.
• Real costs for employees choosing this option instead of the flat -rate reduction of 10%.
• Deductible charges such as compulsory social security contributions.

Where to find the global gross income on the tax notice?

Global gross income is on the tax notice that the services of the Ministry of the Economy send each year to taxpayers, even non -taxable. It generally appears on page 2 after the details of the income and before taxable income.

What differences between gross and global net income and taxable net income?

It is important to take stock of these three concepts in order to know which income will be calculated on the tax.

Global gross income (RBG): definition

The RBG corresponds to the sum of All income from which certain abatements are deducted (for example 10% on wages and pensions for professional costs).

Global net income (RNG): definition

The RNG corresponds to the RBG less the deductible expenses listed in the Official Public Finance Bulletin (BOFIP) as the amount of food pensions paid, the retirement savings contributions, the deductible CSG.

Taxable net income (RNI): definition

The RNI corresponds to the RNG after deduction of special abatements (concerning the elderly, invalids, etc.) and specific deductions (such as reportable land deficits, etc.).

What is the difference between taxable net income and reference tax income?

Net taxable income must not be confused with the reference tax income (RFR) which is at the bottom and right of the tax page of the tax notice. The taxable net income corresponds to that subject to the progressive scale of income tax. It is generally lower than the reference tax income.

If you are asking for certain social benefits (such as the college scholarship, the employment premium) or certain tax exemptions (property tax), you will need to communicate your reference tax income (RFR).