The IR-PME, Defi forest and Sofica tax systems should be extended


MEPs voted on amendments to extend the Madelin IR-PME, Sofica and Defi-forêt tax systems (Photo credit: Fotolia)

On November 12 and 13, as part of the finance bill for 2021, the deputies voted on amendments to extend the Madelin IR-PME, Sofica and Defi-forêt tax systems.

The 25% tax reduction of the Madelin IR-PME system extended until the end of 2021

With the entry into force of the real estate wealth tax (IFI) in 2018, the ISF-PME system has disappeared. To compensate, the deputies had adopted an amendment to reinforce in an exceptional way and for one year only, the device “Madelin IR-PME”, by passing the reduction of income tax for an investment in the unlisted SMEs of 18 % to 25%. But to be implemented, the amendment had to obtain the approval of the European Commission. After almost two years of waiting, it finally gave the green light last August: the tax reduction rate has therefore gone from 18% to 25%, but only for investments made before December 31, 2020.

The deputies have therefore just voted an amendment so that the 25% tax reduction is extended until December 31, 2021. “It seemed quite logical to propose it to the National Assembly, knowing that we fought for three years for achieve an increase in the IR-PME rate ”, explained Laurent Saint-Martin, general rapporteur of the finance committee at the Assembly.

DEFI Forêt: the 25% tax advantage extended until the end of 2022

The tax incentive scheme has? the forestry investment (“DEFI-Forêt”) arrives at? expiration on December 31, 2020. This device aims at? fight against the fragmentation of private forest properties and a? encourage forest owners to? carry out management and provident actions necessary a? sustainable forest management.

The amendment voted on by the deputies extends the 25% tax reduction for investment in timber and forests or shares in forest groups until December 31, 2022.

The Sofica system also extended

Film and audiovisual industry finance companies (SOFICA) are limited companies that collect funds intended for the financing of cinematographic and audiovisual works. The investment in SOFICA shares gives rise to a? a tax reduction of up to 48% of the investment, up to a limit of 18,000 euros.

MEPs voted for an amendment to extend this tax reduction until December 31, 2023.


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