you can now continue to benefit from the 25% tax reduction, Actualité/Actu Epargne


A decree published on March 17 specified the conditions for the extension of the increase to 25% of the rate of reduction of income tax (IR) of the IR-SME scheme. Following the positive response from the European Commission confirming this measure in accordance with European Union law on State aid, the decree provides that the increase in the rate of tax reduction from 18% to 25% applies to payments made between March 18, 2022 and December 31, 2022. This concerns investments in the form of subscriptions to the capital of SMEs or solidarity-based social utility companies (ESUS) and shares in mutual funds for investment in innovation ( FCPI) and local investment funds (FIP).

Last year, the increased rate of 25% concerned investments made between May 9 and December 31, 2021.

Ceilings

The payments taken into account remain subject to certain ceilings. The maximum investment taken into account is €50,000 for a single person and €100,000 for a couple, but the IR-SME is also subject to the general cap on tax loopholes of €10,000. In other words, a couple will be able to obtain up to €25,000 in tax benefits but they will only be able to consume it up to €10,000, assuming that they have no other benefits elsewhere. Any surplus may still be carried over to the taxation of income for the following 4 years.

For FCPIs and FIPs, the investment is capped at €12,000 for a single person (€3,000 tax reduction) and €24,000 for a couple (€6,000 tax reduction).

A tax credit returned in July N+1

In concrete terms, when investing in the capital of an SME or an eligible fund, you must enter the amount invested (excluding entry fees) in box 7CF of your supplementary income statement for the following year. The administration is then responsible for calculating the tax reduction which will be returned in full in July in the form of a credit since the introduction of the withholding tax. For investments made this year (between March 18 and December 31, 2022), the 25% reduction will therefore be received in July 2023 on the basis of the amount declared in spring 2023.

Example

For a subscription of €5,000 by the end of the year in an FIP, FCPI or directly in the capital of an eligible start-up, the taxpayer will benefit from a tax credit of 25%, i.e. €1,250 reimbursed in July 2023.



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