€2 million exemption cap extended for December 2022 closings

The doubling of exemption ceilings continues to apply to include 2022 tax closures.

Exemption ceilings

This was the main measure taken by the government at the outbreak of the 2020 pandemic. It was extended until the closings of December 31, 2022, by the law of February 14, 2022 which entered into force on March 7, 2022.

The exemption ceiling of €1,000,000 is increased to €2,000,000.

This obviously concerns a limited number of companies, because remember that for €1 immunized in tax shelter, you need at least €2 of reserved profits constituted during the financial year.

This exceptional emergency measure taken in 2020 had enabled the sector to maintain a relatively stable level of activity (around €180 million raised annually in Tax Shelter) despite the difficult economic context linked to the pandemic.

The Government has therefore followed the producers' request to maintain for an additional 12 months this possibility for the largest companies to invest amounts twice as high when they make profits that allow it.

Last update on : 19.09.2022

Which is a genuine breath of fresh air for the sector

In practice, the investment ceiling making it possible to exempt the maximum annual amount is again this year at €475,059 (€2,000,000 / 421%).

The maximum tax yield that a company can therefore derive from the operation amounts to €500,000 (the tax due on a profit of €2,000,000) - €475,059 (the maximum amount invested in tax shelter), i.e. €24,941 or even 5.25% of the amount invested.

This tax return can even increase in the event of insufficient advance payments, for example linked to an exceptional result, since the Tax Shelter makes it possible to reduce the negative effect of the 6.75% tax increase.


Last update on : 19.09.2022


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