French General Tax Code
In forceI. - 1. The sum of the income tax reductions mentioned in Articles 199 undecies A, 199 undecies B and 199 undecies C and the carryovers of these tax reductions, which may be offset for a taxpayer in respect of the same tax year, may not exceed an amount of €40,000 comprising in the following order of offset:
a) The sum of the income tax reduction mentioned in article 199 undecies C and carryovers of this tax reduction, up to a limit of €40,000 ;
b) The sum of the income tax reductions mentioned in Articles 199 undecies A and 199 undecies B and the carryovers of these tax reductions, up to a limit of €30,600 less the amount deducted under a of this 1.
2. For the purposes of assessing the limit mentioned in b of 1, the tax reduction in respect of the investments mentioned in the first sentence of the twenty-sixth and twenty-seventh paragraphs of I of article 199 undecies B as well as carryovers resulting from a tax reduction in respect of the same investments are retained for 34% of their amount.
3. For the assessment of the limit mentioned in b of 1, the tax reduction in respect of the investments mentioned in the second sentence of the twenty-sixth paragraph of I of Article 199 undecies B as well as the carryovers resulting from a tax reduction in respect of the same investments are retained for 44% of their amount.
3 bis. For the assessment of the limit mentioned in a of 1, the tax reduction acquired in respect of the investments mentioned in Article 199 undecies C as well as the carryovers resulting from a tax reduction in respect of the same investments are retained for 30% of their amount.
- thirty-three times the seventeenth of the amount mentioned in b of 1 for the fraction not retained pursuant to 2;
- seven times the third of the amount mentioned in a of 1 for the fraction not retained pursuant to 3 bis;
- fourteen times the eleventh of the amount mentioned in b of 1 for the fraction not retained pursuant to 3.
II. - When the individual taxpayer directly makes the investments mentioned in I of Article 199 undecies B in respect of and for the purposes of the activity for which he participates in the operation within the meaning of 1° bis of I of the article 156, the total amount of the tax reduction and deferrals resulting from these investments, which may be deducted in respect of the same tax year, may not exceed two and a half times the limit mentioned in b of 1 of I or an amount of €229,500 per three-year period.
III. - By way of derogation from I and II, the total amount of the income tax reductions mentioned in Articles 199 undecies A, 199 undecies B and 199 undecies C and the carryovers of these tax reductions, which may be deducted for a taxpayer in respect of the same tax year, may be increased, at the taxpayer's option, to 15% of the income for the year in question used as the basis for calculating income tax under the conditions set out in I of l'article 197.
The optional ceiling set in the first paragraph of this III applies in the following order of allocation:
a) To the sum of the income tax reduction mentioned in Article 199 undecies C and the carryovers of this tax reduction, up to a limit of 15% of the income for the year in question used as the basis for calculating income tax under the conditions set out in I of Article 197 ;
b) To the sum of the income tax reductions mentioned in articles 199 undecies A and 199 undecies B and the carryovers of these tax reductions, within the limit of 11% of the income for the year in question serving as the basis for calculating the income tax under the conditions provided for in I of article 197 less the amount deducted under a of this III.
