It has a margin of error limited to 120edu of the right to restitution

Tax shield: latest developments... to anticipate now

The tax shield provided that the overall tax cannot exceed 50 of the income of the taxpayer. Incorporated tax involves the tax, social security payments (CSG, DRES, social levy of 2 and additional contributions by 0.3 and 1.1, sitting on investment income, heritage, the employment income and income replacement), Lai and local taxes due in respect of a principal residence (excluding tax household garbage collection).

The device is applicable to the French tax resident persons but also to the French resident in Monaco.

The right to restitution acquired in January from year N is determined taking into account the income acquired in N - 2 and established and paid taxes, in respect of income earned in N - 2 and the title of the heritage or the situation at 1 January of the year N-1. 2008 Revenue claims for restitution may be thus introduced since January 1, 2010 and this until December 31, 2010.

Since last year, taxpayers may prefer for this refund to charge the amount of taxes that they believe having them be paid directly on some future charges: Lai, relating to the residence local taxes (taxes - except the removal of household waste tax - and tax) and contributions and social security payments (CSG, DRES, etc.) on the income of heritage. Only those taxes may lead to imposition.

The first option of "auto-liquider" to the 2008 income tax surplus is as follows to June 15 next with the payment of the ISF 2010.

The attribution of the claim must be accompanied by a statement from the application of the tax shield (amount of income and charges taken into account, the "claim of shield") and of the imposition or the deposit on which attribution of the claim is made. The debt is not to be taken into account in the taxable assets to the ISF.

If the taxpayer is mistaken in its calculations and imputes an excessive amount, he incur the sanctions of common law and may apply a surcharge of 10. It has a margin of error limited to 1/20edu of the right to restitution.

Whereas Parliament, developing the device of the tax shield in 2007 (Act Tepa on August 21, 2007), was to simplify this system, the finance law for 2010 takes steps: category net income to be taken into account for the calculation of the shield will necessarily correspond to the net income subject to IR, but the gross income.

For the dividend subject - in the absence of option for the levy at source - tax to the progressive rate, the 40 discount to which it opens right for the calculation of the IR 2009 will be more applicable to determine the income to be taken into account for the calculation of the tax shield. As a temperament, however, the legislature has provided a phase-in of this measure, since the amending Finance Act for 2009 reduced the allowance - for the calculation of the shield - 30 for 2009 earnings, 20 for the 2010 income and 10 for 2011 income.

Furthermore, losses on disposals of securities carried out in a year and which will not be charged on capital gains realized in the same year can more be taken into account in the income of the reference to the shield, even though they carry forwards ten years tax on the income. The same rules are chosen for global or categorical deficits made in respect of a given year and which will not be charged on the income of the same year.

Although these developments affect only applications for restitution or posting of taxes starting in 2011, regarding the revenues earned in 2009, they must lead the taxpayer to revisit this year, the relevance of a number of decisions and choices that he had been able to stop until now. Indeed, for the levy at source which would not have been chosen for dividends put in payment in 2009, taxpayer still has the faculty to exercise the option of here retroactively to 15 June of this year!

Reduction of EWB's investments in SMEs: conditions are tightening

Introduced by Tepa law, supplemented by successive finance laws, codified in article 885-O V bis device of CGI allows a reduction of EWB in respect of certain direct or indirect, subscriptions to the capital of SMEs meet the definition of the SME community.

This device allows taxpayers to charge on their bill of EWB, within the limits of an annual amount of 50.000 euros, 75 of the payments to capital of the said SMEs, either directly or via a holding company. The Business Executive can practise this reduction for payments made in his own company. Shares and securities must be retained until 31 December of the 5thyear following that of the underwriting of securities; otherwise, the initially granted tax reduction is questioned. For the 2010 ISF, the payments taken into account are those conducted between June 16, 2009 and June 15, 2010.

Where the taxpayer is forced to transfer its securities within five years under a Pact of Associates, this assignment does not the challenge to the tax reduction granted under all reserves that reinvest in time came to twelve months the entirety of the proceeds of sale and purchase of new eligible titles.

For payments relating to subscriptions made since June 15, 2009 and that are carried out through a company holding, 3 new conditions must be met:

the company must not have more than 50 partners or shareholders;

It cannot have as directors of natural persons;

It should give no guarantee capital to its associates, or automatic exit at the end of the period of five years.

He has specified summer that, on this last condition (Instruction-7 S - 2 10 December 29, 2009), was not impediment to the establishment of mechanisms for liquidity. This is happy, because if the taxpayer is acting as an investor under the terms of this device, he must know the conditions and the "Windows" of output.

The device is applicable also to subscriptions for participatory production cooperatives (SCOP) titles. It allows, within the limit of 20,000 euros per year, a reduction of EWB to 50 of the payments made for shares of some subscription Fund (FIP, FCPI and RPF), within the percentage originally fixed assets invested in securities of eligible companies.

SMEs might fall into the scope of application must register in one of the plans:

the plan approved by the European Commission aimed at companies in seed, start-up or expansion phase and which are not qualifiable of firm in difficulty and are not areas of shipbuilding, in the coal or the steel industry. The ceiling of the authorized payments was increased temporarily EUR 1.5 million to 2.5 million at January 1, 2009 (ceiling appreciated by 12 months);

the plan subject to compliance with the rules "de minimis", for which the ceiling of payment, assessed over a period of 3 years, brought temporarily EUR 200,000 to 500,000 euros on January 1, 2009.

The payments to agricultural companies can benefit in the agricultural de minimis Regulation (ceiling: 7,500 euros in 3 years).

Donations and reduction of EWB: recipients expanded to the whole of Europe

The indebted can benefit from a reduction of Lai, in the limit of 50,000 euros per year, equal to 75 of operated payments for the benefit of the foundations of public utility and some interest organizations general working in research, education or employability. Are taken into account donations in cash, as well as those operated in full ownership of securities listed on a regulated market side or foreign (this gift of securities can result in the finding of a taxable capital gain). The device has been extended, subject to certain conditions, donations made to international organizations located in a State member of the EU, as well as in Iceland or Norway.