Interestingly this is pretty much how it used to work in France up until this year. No deductions from your paycheck, and on year N+1 you pay your income taxes

Interestingly this is pretty much how it used to work in France up until this year. No deductions from your paycheck, and on year N+1 you pay your income taxes for year N. People need to be careful to set aside enough money to be able to pay these deferred taxes. However, now they are moving to payroll deductions :)