Taxes 2023 – Favorable measures go into overtime – News

Some tax credits that were due to expire on December 31, 2022 will be renewed in 2023. Interested taxpayers will have 1 more year to avail them.

The financial bill for 2023 plans to extend the increased tax deduction for the subscription of shares in SMEs, the added deduction for real estate recovery operations according to the Malraux law, as well as the tax exemption on disposal values ​​for 1 year. buildings designed for social housing. These three concessions were supposed to expire at the end of 2022, but will remain in effect for investments, works or sales until December 31, 2023.

SME tax reduction

The Subscription to SME shares (or social utility solidarity enterprises, Esus) entitle you to a reduction in income tax. In principle, this is equal to 18% of the payments made during the year, subject to a limit of €50,000 (singles) or €100,000 (married or PACS couples). But its rate was raised to encourage taxpayers to support the economy during the health crisis 25% For payments made after August 10, 2020. This increased rate was subsequently updated twice for payments made between 9 May 2021 to 31 December 2021 and 18 March to 31 December 2022. So your subscription to SME or Esus shares made this year will entitle you to 18 tax deductions. or 25% next year depending on the purchase date of your securities.

The increased rate of 25% will also apply to subscriptions made in 2023. But here again, only those made from a date determined by the decree, those made before the opening of the 18% discount fee will be mentioned. The French State must indeed wait for the approval of the European Commission to improve this tax advantage. Therefore, interested taxpayers will be interested in waiting a bit before investing in 2023 to benefit from the maximum bonus.

Good to know. Tax deduction for subscription FCPI or FIP units It has also been increased to 25% for payments made from March 18 to December 31, 2022. The 25% tariff will also be applied in 2023 to subscriptions made from the date specified by the decree. Plus 25% tax rebate on subscription shares in solidarity real estate companies Effective in 2022 (regardless of date of payments) to be renewed in 2023, but only for payments made from the date specified in the decree. Previous subscriptions will only receive an 18% discount.

Reducing the Malraux tax

Investors restoration of the building can choose the Malraux law intended for rent. They then benefit from a tax break in exchange for a commitment to rent the property after at least 9 years of employment. Depending on the location of the building to be restored, it is equal to 22 or 30% of the fees and works paid over 4 years, kept within the overall limit of €400,000. This system is very popular with wealthy taxpayers because it allows them to make significant tax savings that are not subject to the general cap on tax loopholes. In addition, properties eligible for the scheme are often located in the historic heart of city centres, enabling them to create a prime real estate portfolio.

In order to benefit from this, the property to be restored must be located in either a significant heritage area (SPR) or an old degraded district or a place with a high concentration of old degraded habitats (listed by decree and order). However, the tax deduction for the latter was normally supposed to disappear on December 31, 2022, but the finance bill plans to extend it by 1 year for business expenses paid before December 31, 2023.

Good to know. The Malraux tax reduction is calculated on the basis of land charges and restoration costs incurred from the date of planning permission to 31 December of the third year following. The building can reach a maximum of €88,000 if it is located in the SRP (€400,000 x 22%) and €120,000 if it is located in a degraded neighborhood (€400,000 x 30%). If the amount exceeds the investor’s household taxes, the excess amount is deducted from his taxes for the next three years.

Exempt from real estate capital gains

Another good news for the owners this time is the tax exemption scheme applicable in the following cases. sale of a building designed for social housing will also be extended until December 31, 2023. Thus, if you sell land or real estate to an organization responsible for social housing (HLM organization, mixed economy company managing social housing, Land Ownership Association, etc.) during this period, you can be partially or completely exempt from tax on your capital gain. On condition that he undertakes to build a social house there within 10 years. You will also benefit from the measure if you sell to another buyer (eg a developer) who commits to building social housing within 4 years.

The exemption will be applied proportionally to the area of ​​the social house to be built in relation to the total area of ​​the buildings mentioned in the building permit submitted by the buyer. For example, if its real estate program provides for 60% social housing, you will be exempt from 60% of your capital gain and the remaining 40% will be taxed (19% tax + 17.2% social security contributions). The exception will be general if you sell to an organization responsible for social housing that plans to build more than 80% of the social housing.

Good to know. Tax exemption regime applicable to capital gains from sale the right to erect a building Sales will be extended for 2 years until December 31, 2024 for the purpose of construction of new residential buildings.

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