To lower its tax on wealth (ISF), there are several solutions. The first is to minimize the tax base by purchasing goods wholly or partially exempt (artworks, forests, etc.) or “depleting” and irrevocably giving a portion of your assets to third parties, via donations children or charitable bodies, for example. The ultimate solution and the most effective, the capping of the ISF is open only a certain category of taxpayers, the wealthy and those who do not have recurring revenue or, at least, are able precisely modulate these revenues, mostly business leaders.
in any case, whether to lower his taxable wealth to the ISF or use the technique of cap it is too late to qualify for the tax payable in 2016, since this is the photograph of your assets on 1 January, which determines the amount of wealth tax liability. There remains a third way, that cuts ISF, you can use until the day of your return EWB (see schedule below) and to help you . lower the rating for the ISF payable in May or June 2016
These reductions are twofold: donations to charitable bodies or investing in SMEs
<. h2> the reduction rate unchanged
If there are changes this year, they do not apply to wealth tax rate reductions. Invest in unlisted SMEs via FIP fund type (local investment funds) or FCPI (Mutual Funds in Innovation) still allows a 50% reduction of its payment, within 18,000 euros. A payment of 36,000 euros therefore provides the maximum reduction.
If you invest in the SME Direct, via a holding company or a management mandate (two solutions proposed by specialized management companies) you’ll also enjoy a discount up to 50% of your payments, but in a higher maximum limit of 45,000 euros. A payment of 90,000 euros in one or more SMEs will get you the maximum reduction. If you Mix and match the two solutions, and direct investment funds, then the limit is established in total 45,000 euros for all of your investments. Also no change in philanthropy: the ISF reduction amounts to 75% of your donations within the limit of 50,000 euros and must therefore pay 66,667 euros to get the maximum benefit. To get 50,000 euros and erase ISF – which corresponds to a taxable estate of a little over 6.1 million – requires that your payments be applied exclusively to donations. If you Mix and match gifts and investments in SMEs, while the ceiling falls to 45,000 euros.
Direct investment in the most Box SMEs
The ISF-PME device evolves and is hardened in 2016. It is not the political will, but of harmonization with European rules on indirect state aid that France must implement. This is now done. Legislation introduced new conditions more restrictive, for SMEs that can benefit from the ISF-PME device and thus allow a reduction of ISF. These “help” SMEs need to be younger and have less than seven years of existence, whereas until now no age condition was required. In addition, investors can now benefit from the wealth tax reduction if they were not already members or shareholders of the company in question, except in cases of follow-up investment and if they had already benefited from the ISF reduction in a previous investment.
“ Taken together, these conditions prevent, in most cases, business leaders to benefit from a reduction of wealth tax when they invest in their own SMEs’ says Stephanie Auféril, a partner at Arkwood.
“ the newly laid condition assumes that the original business plan has anticipated the different situations giving rise to follow-on investments in the form of capital increases, which for future operations, will be very rare practice. This differs therefore any reduction ISF / SMEs in the absence of early follow-up investment, accountable leader shareholder / partner and anyone wishing to participate in a second round, “ confirms Christine Valencia-Sourdille , heritage engineer at BNP Paribas Private Bank.
All persons, companies already shareholders will naturally continue to make investments there, but … without the ISF reduction.
“ the new rules are applicable from 1 January 2016, the investments made previously, eg the end of 2015, whether business leaders who have invested in their own SME or shareholders surrendering the pot, remain valid and will be eligible for the last time in 2016, the ISF reduction, “ says Franck Van Hassel, partner at EY law firm.
minor impact on FCPI and FIP
for those who select each year of new SMEs to make investments there live, they are less affected, but they will now have to be vigilant and ensure that their target meets the new conditions, including that it is a young company under 7 years. Again, the investments made in 2015 remain valid and continue to open right to the ISF reduction.
These conditions, including the age requirement of SME managers are also required to funds, FIP or FCIC. But here, the investor can rest easy: Authorised Funds from January 1 must comply with the new conditions, but those who were in 2015 and are still on the market, this year, are not required and they therefore continue to exercise the right to the wealth tax reduction.
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the calendar 2016
the deadlines for those with taxable wealth is included between 1.3 and 2.57 million at 1 January 2016, and who make their declaration of wealth tax on the same form as the declaration to tax on income:
- filing the “paper” statement: May 18, 2016
- Statements by Internet www.impots.gouv.fr
– Tuesday, May 24, 2016 for the departments 1 (Ain) 19 (. Corrèze)
– Tuesday, May 31, 2016 for the departments 2A (Corse-du-Sud) 49 (Maine-et-Loire),
– Tuesday, June 7, 2016 for 50 departments (Manche) to 95 (Val-d’Oise) and DOM - For those with taxable wealth exceeds 2.57 million euros and therefore make a declaration of specific ISF and separate. Wednesday, June 15, 2016 .
declaration and payment of the ISF: what changes in 2016
- the declaration mandatory Internet
<. p> those with taxable wealth to wealth tax is lower to 2.57 million, make their declaration of wealth tax on the same form as their declaration of income tax. But in Income Tax on income, the statement must necessarily be made by Internet in 2016, for those who are equipped with Internet access and whose income tax reference (that of 2014, on the notice tax 2015) is greater than 40,000 euros.
So, those who declare their ISF along with their income tax (IR), will have to declare their ISF Internet, s’ they meet the conditions (those who can not will have to check a box on their paper statement). The threshold of 40,000 euros will then gradually decrease each year, and télédéclaration affect all taxpayers at maturity 2019.
Please note that non-compliance with this obligation entails the application of a fine 15 euros, following the second consecutive year in which the breach is found. In 2016, you can safely continue to make your statement “paper” for the IR, as the ISF!
- The payment mandatory Internet.
Those who pay a wealth tax contribution of at least 10,000 euros in 2016 and whose taxable assets of less than 2.57 million euros, will also pay their taxes electronically: by debit or electronic payment in their personal space on the tax sites. Exit the check, transfer or TIP!
In case of non-compliance with this new requirement and unless inability to use the Internet, a penalty of 0.2% of the tax due, with a minimum 15 euro applies in 2016.
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Where to invest to fully erase his EWB invoice
The FCPI and FIP permit the maximum wealth tax reduction of 18,000 euros; to go up to 45,000 euros reduction will require complete with direct investments in SMEs (live, via a holding company or a management mandate).
For a reduction ISF 50,000 euros, only donations to charitable bodies are allowed.
when mixing between grants and investment in SMEs (through funds or direct), the maximum reduction drops to 45,000 euros.
