Tax breaks for charity donations
If we donate €200 to charity, is it deducted from our taxable income or the bill itself?
LAST YEAR in Connexion, you wrote about the tax reduction available for giving to (qualified) charities. My wife and I differ on how to interpret this. Our tax bill is roughly €650. She thinks that, if we give €200, the tax office will reduce our taxable income. I read it that, if we donate €200, the tax office will reduce our tax bill by (75 per cent of €200 =) €150. Maybe these figures and rates have changed. FD.
Sir, you win, and your good lady comes in second. These French tax allowances come under the banner of crédit d'impôts and are reductions in the amount of tax due itself, not reductions in the income assessed and then taxed.
So, yes, you would be entitled to the tax reductions against your actual tax bill. Otherwise, for the 2009 tax year, do be careful as to the type of charitable donation you are claiming for, as the rates you mention are for donations to charities that assist in providing free accommodation or food, and also those offering medical, paramedical and dental care, as well as biological analysis, to those in difficulty.
Other charitable donations have tax relief at 66 per cent, subject to the limit of 20 per cent of the assessable income. Also, don’t forget to enclose the copy of the proof of payment, which can be for French or foreign charities. Payments to foreign charities are converted into euros at the exchange rate on the date of the payment. If declaring online, keep a hold of the proof in case it is requested.
