Can branches benefit from the sponsorship tax reduction?
The tax doctrine does not specify that a company must have a certain legal structure in order to benefit from this tax reduction. Indeed, the only condition that the doctrine mentions is that to be eligible, companies must be subject to corporate tax or income tax according to the general regime.
Therefore, branches can benefit from the sponsorship tax reduction when a donation is made to an organisation that supports work of general interest. This organisation can be a selflessly managed public or private company, or a company which is entirely owned by legal entities governed by public law (for example the state, national public institutions, local authorities).
When a donation is made to such an organisation, the tax reduction is equal to 60% of the amount of the donation up to a limit 0.5% of the annual turnover (before tax) of the donating company. This ceiling is applied to the total of all the donations made.
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