A few days left to cut wealth tax
Time is running out to reduce the French ISF bill for 2013 by making gifts to good causes
PEOPLE making a separate wealth tax declaration this year on form 2725 have a few days left to reduce their taxable wealth by making gifts to good causes.
Until June 17, ISF (wealth tax) payers who did not make their declarations along with income tax this year can deduct 75% of the amount of gifts to certain non-profit making organisations recognised as being d’intérêt général such as research and higher education establishments or bodies related to the arts, up to a limit of €50,000 of deductions.
Public interest foundations like the Fondation de France and Fondation pour la Recherche Médicale also apply, as do, for example, certain organisations which finance or support the creation or taking over of a business.
June 17 is also the deadline for making declarations on the 2725. Residents of Monaco and the EU have until July 15, and those in the rest of the world have until September 2. If you fall into these latter categories, then the deadline for qualifying gifts is extended to the same dates.
Declarations on the 2725 apply either to people with net declarable wealth of €2.57million or to non-residents who did not have a French income tax declaration to make this year.
People with net declarable wealth of more than €1.3million but less than €2.57million this year had to declare wealth along with income if they had an income declaration to make. French residents are now too late to declare but non-residents in Europe, the Mediterranean, North America and Africa have until June 17 at midnight, while those in other countries have until July 1.
Note that the total combined ISF reduction available is limited to €45,000 if you are also claiming a reduction for investing in businesses.
Connexion has a guide to the French wealth tax, downloadable from our website at Helpguides for €7.50 (or available to be sent out, plus P&P).
