Tax Reduction

Your donation is eligible for a tax relief

Placed under the aegis of the Fondation de France, the Fondation EM Normandie benefits from the tax relief granted to foundations recognised as being of public utility.

Thus, according to the legislation in force, each of your donations is eligible for a tax reduction in respect of Income Tax (IR), Real Estate Tax (IFI) or Corporate Income Tax (CIT).

Give to the EM Normandie Foundation €300 €1.000 €5.000 €10.000
IR 66% reduction (limit 20% of taxable income) 66% reduction €–198 €–660 €–3.300 €–6.600
Your donation actually will cost you €102 €340 €1.700 €3.400
IFI 75 % reduction (maximum of 50,000 i. e. a donation of €66,666) 75 % reduction €–225 €–750 €–3.750 €–7.500
Your donation actually will cost you €75 €250 €1.250 €2.500
IS 60% reduction (donation taken into account within the limit of €10,000 or 0.5% of the turnover excluding tax if higher) 60% reduction €–180 €–600 €–3.000 €–6.000
Your donation actually will cost you €120 €400 €2.000 €4.000

For example, if you give €300, your donation actually costs you:

  • €102 after income tax reduction
  • or €75 after IFI reduction
  • or €120 after IS reduction

But the Foundation does have €300 for Solidarity Actions!

 

The Income Tax Relief

The withholding tax does not change anything! You can still benefit from a tax reduction of 66% of the amount of your donation made in year n! What changes is the way in which the tax authorities refund the tax reduction, in 2 steps:

  • an advance of 60% of your tax reduction on your donations made in year n-1 will be paid to you on 15 January of year n+1
  • a positive or negative regularisation in September of year n+1, calculated according to the amount of your donation actually made in year n.

For example:

  • In 2017, you made a donation of €100 to the Foundation that you declared in 2018, and in September 2018 you received your 2017 tax notice with a reduction of €66 (66% of the amount of your donation).
  • In 2018, you also made a donation of €100 to the Foundation.
  • In January 2019, you received an advance equal to 60% of 66 € (your tax reduction calculated on your 2017 donation) i.e. €39.50.
  • In June 2019, you reported your income and donation for 2018.
  • In September 2019, you will receive your tax notice with a reduction of €20.50, equal to €66 (reduction to which you are entitled on your 2018 donation) minus €39.50 (advance received in January 2019).
  • In January 2020, you will receive an advance equal to 60% of 66 € (your tax reduction calculated on your 2018 donation) i.e. €39.50.
  • Etc.

 

Withholding tax illustrated by la Fondation de France 

The IFI / Real Estate Wealth Tax relief

Since 1 January 2018, the wealth solidarity tax (ISF) has been replaced by the property wealth tax (IFI). It concerns tax households with net real estate assets in excess of €1.3 million.

A donation to the EM Normandie Foundation entitles you to a tax reduction on the IFI of 75% of its amount, with a maximum of €50,000.

 

Corporate tax reduction

Sponsorship is a system that allows a company to make a financial or material donation to an organization to support a work of general interest, in return for which it can benefit from a corporate income tax relief.

Thus, for companies subject to corporate income tax, a donation to the EM Normandie Foundation entitles them to an IS reduction of 60% of the amounts paid, the donation being taken into account within the limit of €10,000 or 0.5% of turnover excluding tax if this last amount is higher.