Some financial investments offer the investor a tax reduction in France. This tax efficiency is sometimes the only engine performance, or it can complement the investment performance. This is for example the case for the Industrial Giradin used a lot to make a very large tax exemption in one year, group retirement solutions, investment in innovative companies FIP and REITs, in the film industry through SOFICA, in forests with forestry groups (GFF).
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This device relates to investments in very small companies (TPE) and in small and average size companies (PME) overseas. The objective is to allow the acquisition of industrial equipment.
The tax benefit applies to income in the year of investment and therefore to taxes the following year.
The tax reduction is between 12% and 35% of the amount invested in the limit of €18,000.
The Collective Retirement Investments: PERP, Madelin, Article 83
The retirement investments allow you to accumulate savings that will be blocked until retirement. The subscriber will then receive an annuity proportional to the accumulated savings, or an annuity and a part in cash.
It may be the following plans: PERP, Madelin, or Article 83 .
The sums paid into a retirement savings plan are income tax deductible.
The deduction limits vary depending on the device:
PERP and Article 83: 10% of net income from professional activity within 8 PASS, OR, 10% of PASS. (PASS = Social Security Ceiling)
Madelin law: 10% of taxable profit capped at €29,625, plus 15% of profit share between €37,032 and €296,256.
The FIP and FCPI
The FIP (local investment funds) are funds that invest in “PMEs” located in a region or in neighboring regions to the latter. The length of time of a FIP investment is between 7 and 10 years.
The FCPI (Mutual Funds in Innovation) are funds that invest in innovative companies.
The tax benefit for this type of investment is 18% within the limit of €12,000 investment for a single person and €24,000 for a couple.
SOFICA are companies for the financing of the cinematographic or audiovisual industry. They allow, among other things, to finance some films of French cinema.
Investing in SOFICA can benefit from a tax reduction of up to 36% of the amount invested. The limit of the tax reduction is €6,480 .
The forest groups
Forest groups are companies engaged in the management of one or more forests.
In making the acquisition of shares in one of these groups, the investor receives tax benefits, in addition to the annual earnings from the exploitation of the forest and the possible revaluation of the price of shares.
Regarding income tax, the tax benefit is a tax reduction of 18% of investment and capped at €1,026 for a single person and €2,052 for a couple.
This investment also benefit from a 75% reduction in the value of shares in the event of transmission or donation.
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