Donations to associations, investment in SMEs or even payments for your retirement savings… If you want to lower your taxes in 2023, it’s still possible. Here are 5 solutions accessible by the end of 2022.
Tax exemption can serve as a swear word: both as a way of escaping taxes, or by addressing only large fortunes. But it is the state that sets up tax exemption measures to encourage you to give or invest in sectors identified as needing it. And some devices are accessible to all budgets, provided you have a reduced tax! As a reminder, only 44% of the 39 million tax households actually pay income tax.
1 Donations to charities: up to 75% reduction for 1000euros
When you donate to Restos du Coeur, the Red Cross, Doctors Without Borders, Emmas, Action against Hunger or any other recognized organization helping people in difficulty, 75% of the amount donated will be recovered via income tax. next year’s income. Donations to organizations of general interest are only eligible for a 66% reduction.
Example. This autumn, you donate 100 euros to MSF and 100 euros to Restos du cur. You are going to declare them to the Public Treasury during the annual declaration in the spring of 2022, which will allow you to reduce your 2021 income tax by 150 euros. A reduction that will reduce the regularized balance in 2023, most of your tax having already been deducted at source in 2022.
To know. Usually, donations eligible for the 75% reduction are limited to around 550 euros. But in the face of the health crisis, the government has reinforced this advantage in 2020, then extended this boost in 2021 and 2022. If you give 1000 euros by the end of the year, that’s good 750 euros that you will recover in 2023 thanks to the reduction.
Don: what tax reduction for what association?
75% also for religious associations
This is an exceptional response to the health crisis, here again: donations for the benefit of religious associations are subject to a tax reduction of 75% from June 2, 2021 until December 31, 2022, at instead of 66% in normal times.
2 PER: your payments reduce your taxable income
Exit the Perp or other Madelin contract (unless you had already opened one), the only pure retirement savings product accessible to all taxpayers is now the individual PER. Any payment made into a retirement savings plan (PER) is deductible from taxable income, up to a limit of 10% of annual net salary (your personalized ceiling is theoretically shown on your tax notice). Note: if you have an old Perp or Madelin, or a product opened via your company (Perco or collective PER), the payments you make voluntarily are deductible at the same level as those made on an individual PER.
Example. A single person receives 25,000 euros of taxable income in 2022. He is in the first tax bracket, 11%. If he pays 3000 euros on a PER, he theoretically saves 330 euros in tax (11% of 3000 euros), on the tax to be regularized in 2022, since he lowers his taxable income for 2021 by 3000 euros. The higher the income, the greater the advantage: if this taxpayer declares 40,000 euros of taxable income and he margins in the slice 30%the tax gain increases 900euros (30% of 3000euros). And it would be much higher in the 45% bracket (from 160,336 euros of taxable income): 1,350 euros.
Attention. If he congratulates himself on the extraordinary success of the PER, with nearly 6 million French people equipped according to Bercy, the Minister of Economy and Finance Bruno Le Maire puts pressure on banks and insurers: the commissions and fees are, according to him, excessive . On average, according to a study by the Financial Sector Advisory Committee, payment fees reach 3.18%… whereas they are non-existent on online savings platforms.
Compare the PER reduced fees
3 Tax funds: a reduction boosted to 25%
Full names: mutual funds for investment in innovation (FCPI) and local investment funds (FIP). Diminutive: tax funds. Because these products regularly offered in bank branches or in wealth management networks are offered to customers for one purpose: to reduce tax. Invested mainly in SMEs, these funds are eligible for a reduction of 25% at the end of 2022, instead of 18% in normal times. Even 30% for Corsica and overseas FIPs.
Example (without taking into account the costs). You bet 2000 euros at the end of 2022 on an FCPI. You can expect a one-off reduction of 500 euroswhich you will benefit from on the tax payable in 2023 for 2022 income. On condition that you keep your FCPI shares for a minimum of 5 years!
save up to 70% on your borrower insurance
Attention. Before betting on these tax funds, closing your eyes: first of all, you will be immobilizing your money for a decade, the lifespan of the funds being often 7 or 8 years, sometimes 10 years. It is impossible to obtain the redemption of your shares during the life of the fund, warns the Autorité des marchés financiers (AMF) in a ddi booklet. Furthermore, costs are potentially high and financial performance is uncertain, as the AMF points out, emphasizing the risk of capital loss.
5 pitfalls of tax exemption
4 Crowdfunding: 25% also by investing in SMEs
The Madelin or IR-PME tax reduction which applies to tax funds concerns all direct investments in eligible SMEs. However, equity investment in SMEs has become more democratic with the rise of crowdfunding, or rather crowdequity for equity crowdfunding.
Example. A taxpayer invests 10,000 euros in the capital of an SME end of 2022, directly or via a crowdfunding platform. Without taking into account the possible costs, the reduction amounts to 2500 euros, against 1800 euros before the increase in this tax benefit of 25%. A reduction to claim on the tax paid in 2023 on the basis of 2022 income. Provided, however, that you maintain your investment for 5 years!
Attention. Bear in mind that an investment in the capital of an SME is inherently very risky! Hence the importance of carefully choosing the companies in which you invest, and if possible of diversifying your bet among several SMEs. Moreover, this tax reduction is subject to the overall cap on tax loopholes, of 10,000 euros per year.
What ceiling for the various tax exemption schemes?
5 tax SCPIs: 2% per year for 9 years in Pinel
Investing in rental property to limit your taxes? This has nothing to do with a process initiated hastily at the end of the year! Because investing in new real estate (or old with renovation) is a long-term project. Real estate investment companies (SCPI) provide access to this market with a low entry ticket of a few hundred euros. And tax SCPIs make it possible to bet on funds themselves invested in housing eligible for the various tax incentive schemes: Pinel, Denormandie, Malraux, property deficit, etc.
Example. A taxpayer put this fall 10,000 euros on a SCPI Pinel. Most often, the tax reduction begins immediately, from the year of the subscription of the units. You can therefore expect to benefit from a reduction equivalent to 2% of the investment, i.e. 200 per year from 2023 (income tax 2022), for 9 yearsor 18% in total (1800euros), if the rental commitment in Pinel is 9 years.
Attention. The money invested is blocked (or very difficult to recover) for ten or even fifteen years, the usual investment horizon for a SCPI Pinel, the best seller tax SCPIs. In addition, you have to wait a few months or years before receiving rents (in the form of dividends), the costs are high (even if they are included in the price of the share) and you have to anticipate lower performance than with the so-called performance SCPIs, non-tax.
What you need to know before investing in Pinel SCPIs