October may apply a tax rate to your earnings according to your country of fiscal residence. In order for us to define this tax rate, we will ask you to send us a proof of tax residency if the country of your ID does not match the one of the postal address you entered when signing up to October.
Tax rate based on your tax residency
If you are a French fiscal resident, interests are subject to the progressive rate of income tax and social security contributions. In practice, a fixed advance is withheld at the time of the payment of interests, which correspond to:
- 12.8% of the interests for income tax,
- 17.2% of the interests for social contribution (CGS, CRDS …).
The amount withheld is then either deducted from your total income tax to be paid the following year or is refundable in case of surplus (as a refundable credit tax).
If you are a Spanish fiscal resident, in accordance with Spanish law, October will withhold 19% of your earnings as Personal Income Tax, which will be transferred to the Spanish Tax Agency.
If you are an Italian fiscal resident, in accordance with Italian law, October will withhold 26% of your income for income tax purposes, which will transfer to the Italian Tax Office.
🌍 Other countries
If you are not fiscally resident in France, Italy or Spain, no taxes are withheld on your returns and you will have to declare those interests yourself in your country of residence.
How can I change my tax residency?
Your tax residency cannot be changed during the ongoing year. If your tax residency has changed and you want to update your October account, you will have to send us a proof of your new tax residency to the Lenders Relations team at [email protected]. The team will update your tax information at the end of the year.
How are the taxes displayed in the portfolio?
- The total amount of taxes withheld on your earnings can be found in the Summary tab of your portfolio.
- You can also find the detail of the tax withdrawals for each project on the repayment extract available on the Summary tab of your Portfolio. To download the Excel of your future and past repayments, click on the “Export” button, above the Activity section.
- At the beginning of each year, October provides a year end tax certificate with the total amount of interest received and the total amount of taxes withheld during the previous tax year. October will send you an email when the information necessary for your tax declaration will be available on the Tax tab of your portfolio.