Income tax - 66% tax deduction
66% of your donation is tax-deductible from your french income tax, ceiling of 20% of taxable income.
* You donation must be made before 31 December 2019
* Your donation exceeds this amount? The surplus can be spread over 5 years in the same conditions.
Tax deductions are maintained in the same conditions.
During the spring 2019, you will declare your revenues 2018 and will indicate your donations 2018. You won’t pay an income tax for your revenues 2018 (except on extraordinary revenues) but you will conserve the tax deductions linked to your donations.
* This is your first donation: your tax deduction 2018 will be tansformed in tax credit and will be refunded during the summer 2019 by the French tax administration.
* If you made a donation in 2017: in January 2019, the French tax administration has made an advance payment equivalent to 60% of your tax deduction 2017. If your donation is equivalent in 2018, the remaining 40% will be refunded over the summer 2019. In the opposite case, an adjustement will be realised.
Wealth tax on real estate - 75% tax deduction
In 2018, the French wealth tax (ISF) has been replaced by a wealth tax on real estate called IFI.
The IFI only concerns property assets not linked to a professional activity.
You owe this tax when the taxable net value of your property assets exceeds €1.3M as of January 1st 2019.
*Permanent residence (or tax domicile): allowance of 30%
Donations to the ESCP Foundation are still tax deductible: 75% of your donation is tax-deductible in the limit of €50 000 which means a maximum donation of €66 667.
* You have to donate before the deadline of your tax return (see below).
There is no separate declaration. You must declare your IFI with your income tax by completing the appendices and evaluating your property assets.
IFI declaration and donation:
16 May: deadline for paper tax return
21 May: deadline for online tax return – departments from 01 to 19, Monaco and non-residents
28 May: deadline for online tax return – departments from 20 to 49
4 June: deadline for online tax return – departments from 50 to 976
Tax withholding: from September 2019
Divide the amount of your IFI by 0.75 to obtain the amount of the donation which reduces your IFI to zero.
2 000 €
5 000 €
50 000 €
2 667 €
6 667 €
66 667 €
Income tax / Corporate tax - 60% tax deduction
Companies subject to income tax or corporate tax benefit from a tax reduction equal to 60% of donations, subject to a ceiling of 5‰ (5 per thousand) of their annual turnover.
If the donation is higher than this amount, it is possible to carry the surplus forward over the next five tax years, depending on the donations made every year.
NEW: the new 2019 finance law allows SMEs and VSEs to use an alternative ceiling of €10,000 under certain conditions. Please contact us for further information.