When an entrepreneur builds his business, he doesn’t always get rich, but he can turn the people around him, VsOften the first source of financing. This is the case with many project leaders.
Not only is personal contribution one of the first funds needed to set up a project, it also allows you to instill confidence in funders. This is especially true when applying for credit. It also makes it possible to self-finance some of the needs not covered by banks. We will specifically look at start-up costs, intangible investments other than goodwill, 30% of the value of physical investments or working capital requirements).
If he doesn’t have enough savings, the producer can request a love amount. In other words, money received from family or friends. Your relatives who invest in your project benefit from the help. In fact, corporate capital donations are often subject to special taxation.
possible tax cuts
It should be noted that subscription of capital in a new company incorporated as a company makes it possible to receive benefits from:
- income tax reduction for subscription to the capital of new companies (with a variable limit equal to 25% of the amount invested in the company’s capital);
- or wealth tax reduction: The TEPA law established a wealth tax reduction of 75% of payments made to the capital of unlisted companies (limited to 50,000 euros per year).
Investors who benefit from these measures agree to hold shares of the company for at least five years.
IFI and ISF benefits cannot be combined for a single payment.
You can benefit from a tax deduction if you make a cash payment in connection with subscription to initial capital or capital growth for small businesses.
The concerned company has to meet the definition of Community SME. This, on the date of payment for which you want to get the benefit of tax deduction. Thus, an SME in the Community sense of Annex I to EU Regulation No. 651/2014 is:
- a company that employs less than 250 people
and whose annual turnover does not exceed 50 million euros,
or a company whose annual balance sheet total does not exceed EUR 43 million.
- A company in which not less than 25% of the capital or voting rights is controlled, directly or indirectly, individually or jointly by one or more public bodies or public authorities.
tax deduction amount
Depending on the payment term, two rates apply:
- Between 01/01/2022 and 17/03/2022, the tax deducted is equal to 18% of the payment made;
- The deduction has been increased to 25% between 18/03/2022 to 31/12/2022.
It should be noted that, in case of investments in FIPs (Local Investment Funds), whose assets are at least 70% made up of SMEs located exclusively in Corsica, tax deduction up to 30%, regardless of the date of payment increases. 2022. Then enter the amount in box 7FM. The same applies to foreign FIPs (Box 7FL).
Depending on the type of company capital you subscribe to, the limits may vary:
- For companies of the type SME, ESUS (Solidarity Companies of Social Utility) and SFS (Solidarity Land Companies) it is €50,000 for an individual or €100,000 for a couple.
- For FCPI (Innovation Mutual Fund) and FIP (Local Investment Fund) it is €12,000 for an individual or €24,000 for a couple.
The portion of the payment that exceeds these limits entitles you to a tax deduction for the next four years within the same limit.