DONATIONS AND TAXATION
FREE DONATION IN NUMBER:
Benefit from a tax reduction
Under the tax legislation in force in France, for any sponsorship in the form of a financial donation and whatever the amount. Each donation is subject to a tax receipt completed and returned by SAMC. The amount of the tax receipt corresponds to the donation amount.
For French residents:
- Any donation made by an individual entitles you to a tax reduction on the income of 66% of the amount of the gift made, within the limit of 20% of the taxable income. When donations exceed this limit, the surplus is carried over successively over the next five years and entitles them to the tax reduction under the same conditions.
- Any corporate donation allows you to benefit from a reduction in corporation tax, up to 60% of the amount of the donation (up to 2 million euros), up to a total limit of 20 € or 000 per thousand of annual turnover (excluding tax). If this limit is exceeded, the excess may be carried over to the next 5 years.
The gift, definition:
A donation is any amount of money or work of art donated by a person while alive. It can be realized in different forms:
- The manual gift: it is the direct hand-over of objects or money. It does not require any particular formalities, nor to resort to a notary.
- Notary donation: the notarial deed may contain conditions imposed by the donor.
- Donation subject to usufruct: the donor consents to the donation while reserving for his benefit or for the benefit of another (spouse, child or third person) the usufruct of the good, ie he can preserve enjoyment. The usufruct is temporary, it is extinguished at the agreed term or at the death of the usufructuary. At the end of the usufruct the donee becomes the full owner.
The donation allows you to benefit from:
- for individuals, deductibility (income tax) of 66% of the amounts paid, up to a limit of 20% of taxable income.
- Total exemption from transfer duties.
It is similar to the donation in principle but it is accompanied by a notarial act by which the owner can specify conditions relating to the conservation and the presentation of the work. The SAMC collects all forms of donation, which it either complete or subject to usufruct.
You can benefit from:
- Total exemption from transfer duties.
It is an exceptional method of payment that allows to pay a tax debt by the delivery of works of art, books, collectibles, documents of high artistic or historical value. It allows an individual to pay in whole or in part the inheritance tax, free transfer rights inter vivos, sharing rights or wealth tax (ISF). It is a fair system that allows the taxpayer to extinguish his debt and the state to enrich public collections.
The dation is subject to the approval of an interministerial commission.
The temporary transfer of usufruct:
If you do not wish to definitively divest your movable or immovable property, you have the possibility to make a temporary transmission of usufruct for the benefit of an association recognized by public utility. It can be life-long or only temporary, for a minimum of 3 years.
During the duration of the usufruct, you can then benefit from:
- Exemption from wealth tax on the property in question.
- Exemption from tax on the income that the property generates.
It is a testamentary disposition taken by an individual wishing to support a specific cause upon his death. Associations can collect any type of legacy (universal, particular or verbal).
In this context, you can benefit from:
- Exemption from inheritance tax.
Donations made by the heirs:
The amount of gifts from an estate made by the heirs, donees or legatees in favor of a foundation or association recognized as being of public utility is now subtracted from the inheritance tax base. This measure thus aligns the regime of gifts made by the heirs to that provided for the legacies made by the deceased to these organizations. The donation must be made within six months of the death. In any case, the donation must be made definitively and in full ownership. For the same gift, an heir can not combine the benefit of this measure with the income tax reduction. He must therefore choose one of the two schemes.
The heirs may choose, at the time of the succession, to make a donation of money and may benefit from:
- Exemption from inheritance tax on the sum given.
Contact: René Abate: firstname.lastname@example.org Maryvonne Deleau: email@example.com - Tel + 33 (0) 6 82 95 65 18