Tax reduction for subscription to the capital of an SME

The tax credit for the financing of SME’s was introduced to promote investment in small and medium sized European firms and is applicable for individuals domiciled in France as tax residents. Non-residents cannot benefit from the scheme.

There are however conditions the company being financed must fulfil:

The company must have a registered office in the EU (or Iceland & Norway).
It must be subject to corporate tax.
It must not be listed on the stock exchange and purchased shares must be kept for at least 5 years.
The taxpayer also cannot be a previous shareholder/partner in the company.
Finally, the company cannot be considered as struggling financially.

The maximum amount of funding that can be invested is 50 000 € for an individual and 100 000 € for a partnership/couple.

The tax reduction will be equal to 18 % of the payments to the SME.

At Maupard, our expert accounting team has years of experience filing tax returns and can investigate if schemes like this one could apply to you.

For more information about this or any of our other services, please don’t hesitate to get in touch, we’d be happy to help.