Tax Reduction on Payments Made to Organisations of General Interest
This scheme concerns a tax reduction for donations to eligible organisations or to bodies that fund and support SMEs. The operations listed in the catalogue are: payments made to: bodies approved under Article 1649 nonies whose sole purpose is to provide financial aid for investments as defined in Article 2(c) of Commission Regulation (EC) no. 70/2001 of 12 January 2001 on State aid to SMEs, or to provide support services to SMEs within the current EU definition; works or organisations of general interest of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contributing to the promotion of the artistic heritage, the protection of the natural environment or the spread of French culture, language and scientific knowledge — notably university foundations, partnership foundations or corporate foundations, even if the latter bear the founding company’s name, and even if the donor company’s name is associated with the operations of these organisations; foundations or associations recognised as being of public utility or museums with the “Musée de France” label meeting the previous conditions, as well as religious or charitable associations and the public establishments of recognised religions in Alsace-Moselle (the public utility condition is deemed met by associations governed by the local law of the Moselle, Bas-Rhin and Haut-Rhin departments when their mission is recognised as being of public utility); public or private non-profit higher education or arts education establishments of general interest; public or private companies or bodies approved for this purpose by the budget minister under Article 4 of ordinance no. 58-882 of 25 September 1958 on scientific and technical research; public or private bodies, including capital companies whose shareholders are the State or national public establishments, alone or jointly with local authorities, managed on a non-profit basis, whose main activity is presenting dramatic, lyrical, musical, choreographic, cinema and circus works to the public or organising contemporary art exhibitions, provided the payments are used for this activity (not applicable to bodies presenting pornographic works or works inciting violence); thesis projects offered for doctoral sponsorship by doctoral schools under conditions set by decree; companies wholly owned by the State whose activity is to represent France at world expos; the Fondation du patrimoine, or a foundation or association that irrevocably allocates these payments to it, to subsidise works under agreements between the Fondation du patrimoine and building owners (individuals or non-trading companies made up only of individuals whose sole purpose is managing and letting unfurnished the buildings they own); other foundations or associations recognised as being of public utility and approved by the budget minister with a cultural purpose, to subsidise conservation, restoration or accessibility works on listed or registered historic monuments; employers’ groups with the GEIQ label that organise integration and qualification pathways. Donations to bodies approved by the Minister of the Economy and Finance with their registered office in an EU member state or an EEA state that has signed a tax agreement with France including an administrative assistance clause against fraud or tax evasion also qualify, where those bodies have similar objectives and characteristics to the eligible bodies based in France; as do donations to Radio France allocated to funding the musical activities it manages and funds. For donations to such foreign bodies, the tax reduction is clawed back unless the taxpayer has provided, within the filing deadline, evidence that the body has similar objectives and characteristics to the eligible bodies based in France. To prepare: check the eligibility of the beneficiary organisation, the nature of the donation, the applicable caps and the proof of payment. The detailed conditions must be checked in the official source before any application or declaration.
Tax reduction on payments to organisations of general interest (corporate sponsorship) aims to encourage companies and individuals to make donations, through a tax reduction, to approved bodies whose sole purpose is to give SMEs financial aid for investment or to provide them with support services, and to philanthropic organisations and organisations of general interest. In practice it covers a tax reduction for donations to eligible organisations or to bodies that fund and support SMEs. The key point is to check the beneficiary’s profile, the geographic scope (national aid) and the conditions in force before including the advantage in the company’s budget.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
Beneficiaries listed in the catalogue: companies subject to income tax or corporation tax whose profits are taxed under a real regime as industrial and commercial profits, non-commercial profits or agricultural profits; individuals.
Eligibility conditions
Conditions listed in the catalogue: payments are not deductible when determining taxable profit. An approval is issued to SME funding bodies that undertake to continuously meet all of the following conditions: the body is managed on a non-profit basis; its aid and services are unpaid and used in the direct interest of the beneficiary companies; the aid falls within the “de minimis” regulation or is specifically authorised by the Commission; the amount paid each year to a company does not exceed 20% of the body’s annual resources; the aid cannot benefit companies whose main activity is property management.
What the scheme covers
Operations and exclusions indicated in the catalogue: Payments made to: bodies approved under Article 1649 nonies whose sole purpose is to provide financial aid for investments as defined in Article 2(c) of Commission Regulation (EC) no. 70/2001 of 12 January 2001 on State aid to SMEs, or to provide support services to SMEs within the current EU definition; works or organisations of general interest of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contributing to the promotion of the artistic heritage, the protection of the natural environment or the spread of French culture, language and scientific knowledge — notably university foundations, partnership foundations or corporate foundations, even if the latter bear the founding company’s name, and even if the donor company’s name is associated with the operations of these organisations; foundations or associations recognised as being of public utility or museums with the “Musée de France” label meeting the previous conditions, as well as religious or charitable associations and the public establishments of recognised religions in Alsace-Moselle (the public utility condition is deemed met by associations governed by the local law of the Moselle, Bas-Rhin and Haut-Rhin departments when their mission is recognised as being of public utility); public or private non-profit higher education or arts education establishments of general interest; public or private companies or bodies approved for this purpose by the budget minister under Article 4 of ordinance no. 58-882 of 25 September 1958 on scientific and technical research; public or private bodies, including capital companies whose shareholders are the State or national public establishments, alone or jointly with local authorities, managed on a non-profit basis, whose main activity is presenting dramatic, lyrical, musical, choreographic, cinema and circus works to the public or organising contemporary art exhibitions, provided the payments are used for this activity (not applicable to bodies presenting pornographic works or works inciting violence); thesis projects offered for doctoral sponsorship by doctoral schools under conditions set by decree; companies wholly owned by the State whose activity is to represent France at world expos; the Fondation du patrimoine, or a foundation or association that irrevocably allocates these payments to it, to subsidise works under agreements between the Fondation du patrimoine and building owners (individuals or non-trading companies made up only of individuals whose sole purpose is managing and letting unfurnished the buildings they own); other foundations or associations recognised as being of public utility and approved by the budget minister with a cultural purpose, to subsidise conservation, restoration or accessibility works on listed or registered historic monuments; employers’ groups with the GEIQ label that organise integration and qualification pathways. Donations to bodies approved by the Minister of the Economy and Finance with their registered office in an EU member state or an EEA state that has signed a tax agreement with France including an administrative assistance clause against fraud or tax evasion also qualify, where those bodies have similar objectives and characteristics to the eligible bodies based in France; as do donations to Radio France allocated to funding the musical activities it manages and funds. For donations to such foreign bodies, the tax reduction is clawed back unless the taxpayer has provided, within the filing deadline, evidence that the body has similar objectives and characteristics to the eligible bodies based in France.
Amount and funding terms
Amount and terms indicated in the catalogue: a reduction of income tax or corporation tax equal to 60% of the donations made in a year, up to 0.5% (5 per thousand) of annual turnover for a company, or 20% of taxable income for an individual. If this limit is exceeded in a financial year, the excess can give rise to a tax reduction in the following 5 financial years, after taking into account the payments made in each of those years, without exceeding the 60% cap. For donations above €2 million, the rate is reduced to 40% for financial years closed after 31 December 2020, except for donations to associations helping people in difficulty. Each year, the tax reduction is calculated first on the year’s spending, then on carry-forwards in order of age. For approved bodies whose sole purpose is to give SMEs financial aid for investment or to provide them with support services, the scheme is granted under the European “de minimis” regime, which limits total public aid per company to €300,000 over 3 years.
How to apply
1. Check that the company and the operation fall within the scheme’s tax scope. 2. Check the calculation, caps and combination conditions in the up-to-date tax documentation. 3. Gather the agreements, receipts, evidence of staff made available or documents proving the payment. 4. Have the treatment applicable to the financial year concerned validated and keep the documents in case of an audit.
Timeline
The applicable timetable must be confirmed in the official source. Check the period of costs taken into account, the deadline and any transitional rules.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
- Type of funding
- Tax exemption
- Status
- Ongoing
- Maximum amount
- €300,000
- Automatically extracted — check the official source
- Funding rate
- 60%
- Automatically extracted — check the official source
- Geographic scope
- All of France
Frequently asked questions
What is the “Tax reduction on payments to organisations of general interest (corporate sponsorship)” for?
A tax reduction for donations to eligible organisations or to bodies that fund and support SMEs.
What advantage is provided?
Amount and terms indicated in the catalogue: a reduction of income tax or corporation tax equal to 60% of the donations made in a year, up to 0.5% (5 per thousand) of annual turnover for a company, or 20% of taxable income for an individual. If this limit is exceeded in a financial year, the excess can give rise to a tax reduction in the following 5 financial years, after taking into account the payments made in each of those years, without exceeding the 60% cap. For donations above €2 million, the rate is reduced to 40% for financial years closed after 31 December 2020, except for donations to associations helping people in difficulty. Each year, the tax reduction is calculated first on the year’s spending, then on carry-forwards in order of age. For approved bodies whose sole purpose is to give SMEs financial aid for investment or to provide them with support services, the scheme is granted under the European “de minimis” regime, which limits total public aid per company to €300,000 over 3 years.
Who can benefit?
Beneficiaries listed in the catalogue: companies subject to income tax or corporation tax whose profits are taxed under a real regime as industrial and commercial profits, non-commercial profits or agricultural profits; individuals.
Which supporting documents should I prepare?
Check the eligibility of the beneficiary organisation, the nature of the donation, the applicable caps and the proof of payment. Consult the official list of documents to enclose.
Official source
No official URL is available in our data for this grant.
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