The end of the year is fast approaching and you want to obtain a tax reduction in 2024? Thanks to your payments into a Retirement Savings Plan (PER), you will be able to deduct up to 32,909 euros from your 2023 income.
2023 taxes are over. Are you now thinking about your 2024 taxes? They will be calculated on your 2023 income… and there is still time to reduce them. Thanks to the Retirement Savings Plan (PER), you will be able to deduct up to 32,909 euros from your taxable income by the end of the year.
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How much will you be able to deduct?
Every year, thanks to voluntary payments made to a PER, you have the possibility of reducing your taxable income. They are not taken into account in the overall ceiling of tax shelters. This tax deduction is valid as much for your PER as for payments on old Perp, Madelin retirement contracts or other Prfon for civil servants.
The total retirement savings limit you can deduct is calculation automatically and corresponds 10% of your annual income, within the maximum limit of 35,194 euros euros in 2023. And good news, it can be cumulated over the last three years. This ceiling therefore consists of the annual ceiling applicable to contributions paid in 2023 (based on 2023 income) to which we add the unused applicable annual ceilings from the 3 previous years. Potentially, for a taxpayer with very comfortable income who has never invested in retirement savings, the cumulative ceiling can therefore approach 130,000 euros.
To find out your ceiling, go to your last tax notice, the retirement savings ceiling section.
I paid into my PER an amount higher than the deduction ceiling, what will happen?
For whom is the deduction of payments most interesting?
The more you are taxable, the more attractive the deduction from your voluntary payments. It will be more meaningful for those who appear in the 30% or 45% brackets of the income tax scale only for lower-income taxpayers who find themselves in the 11% bracket.
| Income bracket by tax share | Rate applicable for the tranche |
|---|---|
| Until 11316 | 0% |
| From 11317 28852 | 11% |
| From 28853 82499 | 30% |
| From 82500 177444 | 41% |
| More than 177444 | 45% |
Scale estimated based on calculations carried out by MoneyVox. The revalued scale will only be known with the finance law for 2024.
By placing for example 1000 euros At the end of the year, you will reduce your 2023 taxable income by 1000 euros. Which will reduce your tax payable in 2024 by 110 euros tax if you are in the bracket 11%and of 450 euros for the slice 45%.
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