1175 euros, here is the average amount of tax reductions for the 7 million households who benefited from them last year. But this average hides very different amounts, between the average reduction of 246 euros for donations to associations helping the most deprived… and the average reduction of 14,566 euros for overseas tax exemption.
To benefit from a tax reduction, you still have to pay taxes! This statement sounds like a truism to you, but sometimes it is better to point out the obvious. And therefore the difference between a tax reduction, which can only benefit half of the population (even a little less) who pay income tax, and a tax credit which benefits even the non-taxable.
Taxes: credit or reduction? Why has everything changed!
From the point of view of the cost for public finances, it is the reduction for income from foreign sources which costs the most: 2.6 billion euros not collected by the State under this tax advantage, which aims to avoid double taxation in France of income generated abroad, as recalled by the General Directorate of Public Finances (DGFiP) in its statistical report unveiled Tuesday April 16.
From the point of view of averages, it is unsurprisingly the reductions linked to tax exemption investments which represent the most significant advantages: overseas investment, Pinel rental real estate, Madelin or IR-PME system (via the FCPI and FIP), etc. .
| Main credits and tax reductions | Beneficiary households | Average amount per beneficiary household |
|---|---|---|
| Specific taxation of income from foreign sources | 350000 | 7324 |
| Donations from general interest organizations (66% reduction) | 3.26 million | 411 |
| Donations to people in difficulty (75% reduction) | 1.91 million | 246 |
| Rental investment Pinel | 340000 | 4026 |
| Rental investment Scellier | 110000 | 3413 |
| Rental investment Duflot | 20000 | 3506 |
| Overseas productive investments | 50000 | 14566 |
| School fees for children | 2.45 million | 183 |
| Dependency-related costs | 220000 | 1180 |
| SME capital investment | 50000 | 2291 |
| Total tax reductions | 7.04 million | 1175 per year |
Source: DGFiP Statistics, April 2024. 2023 tax credits and reductions on 2022 income.
Donations to charities: stable reductions
Donations from general interest organizations are stable, notes the DGFiP. 3.3 million tax households declare it for their income tax. They generate a tax reduction of 1.3 billion euros. These donations to general interest associations entitle you to a reduction of 66% of the amount donated.
And the 75% donations, nicknamed Coluche law donations in reference to the Restos du Cœur? Despite the increase in the ceiling for donations eligible for the 75% reduction in recent years, the amounts are stable even if we note a slight increase over several years: 1.9 million beneficiary households and 246 euros reduction, compare with an average advantage of 183 euros for 1.6 million households in 2020.
These 1046 euros of tax credit that you must not forget to claim in your declaration