Your donation is eligible for a tax relief
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.
- In 2021, you made a donation of €100 to the Foundation that you declared in 2022, and in September 2022 you received your 2021 tax notice with a reduction of €66 (66% of the amount of your donation).
- In 2022, you also made a donation of €100 to the Foundation.
- In January 2023, you received an advance equal to 60% of 66 € (your tax reduction calculated on your 2021 donation) i.e. €39.50.
- In June 2023 you reported your income and donation for 2022.
- In September 2023, you will receive your tax notice with a reduction of €20.50, equal to €66 (reduction to which you are entitled on your 2022 donation) minus €39.50 (advance received in January 2023).
- In January 2024, you will receive an advance equal to 60% of 66 € (your tax reduction calculated on your 2022 donation) i.e. €39.50.
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.