Tax deduction and research support
Donations made to associations, recognized public-benefit foundations, or organizations of general interest are deductible from the French Wealth Tax (IFI) at a rate of 75%. You can make an IFI donation and support medical research while significantly reducing your tax liability.
Who can make a donation subject to the French wealth tax (IFI)?
Introduced by the 2018 Finance Act, the IFI replaced the Wealth Tax (ISF). It applies to taxpayers whose real estate assets represent a net taxable value exceeding €1,3 million on January 1st of the tax year.
All real estate assets, built or unbuilt, held directly or through a real estate company (SCI / SCPI), are included in the calculation of taxable assets.
The following persons are subject to the IFI (French wealth tax):
- domiciled in France and owning real estate assets in France or abroad,
- domiciled abroad and owning real estate in France.
Taxable assets and liability
All real estate assets, built or unbuilt, held directly or through a real estate company (SCI / SCPI), are included in the calculation of taxable assets.
Individuals subject to the IFI (French Wealth Tax) may include:
- domiciled in France and owning real estate assets in France or abroad,
- domiciled abroad and owning real estate in France.
Why make a donation under the IFI (French wealth tax) scheme?
Making a donation subject to the French wealth tax (IFI) is a socially responsible and tax-efficient opportunity. This act of generosity allows you to actively support a cause and contribute significantly to the operation of associations and foundations, while reducing your IFI liability, or even eliminating it entirely.
The Pasteur Institute of Lille, a foundation recognized as a public benefit organization since 1898, can receive donations that are tax-deductible under the French wealth tax (IFI). Donor generosity constitutes 75% of the Foundation's resources.
Donation IFI and tax reduction
Donations are eligible for a tax reduction of 75% of the donation amount, up to a limit of €50,000. Any excess can be deducted from your Income Tax up to a limit of 20% of your taxable income. Therefore, depending on the amount of your donation, you may be partially or fully exempt from the French wealth tax (IFI).
The formula to apply to find out the amount of the donation to make to reduce your IFI to 0 is: Amount of IFI / 0,75.
Example of deduction calculation
A person with net real estate assets of €1,500,000 must pay €3,900 in IFI (French wealth tax), they can:
To be completely exempt from the IFI (French wealth tax):
- By making a donation of €5,200, she receives a tax receipt allowing her to deduct €3,900 from her French wealth tax (IFI) (€5,200 x 0,75 = €3,900). Her IFI is therefore reduced to €0, and her donation only costs her €1,300 (€5,200 – €3,900), while the Pasteur Institute of Lille receives €5,200 to fund medical research projects.
Reducing your IFI (French wealth tax):
- By making a donation of €2000, she receives a tax receipt allowing her to deduct €1,500 from her wealth tax (2,000 x 0,75 = 1,500). Her wealth tax is reduced to €2,400 (3,900 – 2,400) and her donation only costs her €500 (2,000 – 1,500).
Make a donation of a larger amount and deduct it from your wealth tax and income tax.
- By making a donation of €10,000 she can deduct:
- €3,900 in IFI (corresponding to a donation of €5,200) and reduce his IFI to 0
- €3,168 in respect of income tax (4,800 x 0,66)
- His donation of €10,000 then only amounts to €2,932 (€10,000 – €3,900 – €3,168)
How to make a donation subject to the French wealth tax (IFI)?
You can make a donation of any amount you choose, according to the following terms:
- Regular donation by direct debit
- One-time online donation with tax receipt within 48 hours
- Donation by mail (cheque or SEPA mandate) to the Pasteur Institute of Lille, with registration on the real estate asset declaration via form 2042-IFI attached to the Income Tax return
PASTEUR INSTITUTE OF LILLE
RESEARCH SUPPORT
AUTHORIZATION 81016
59049 LILLE
For any questions on this subject, please contact the Donations and Bequests department at 03 20 87 79 47 or at the address donsetlegs@pasteur-lille.fr.
