Personal tax credits
Charitable contributions (including amounts expressly renounced) made to qualified philanthropic, educational, scientific, social, religious, political, or cultural organisations, non-profit making organisations recognised as being of public benefit (d'utilité publique), associations authorised to assist with the creation of companies, companies in difficulty, or companies with fewer than 50 employees, as well as to trade unions, can be claimed as a tax reduction of up to 66% of actual contributions.
Limitations on the tax reduction are applicable, based on the net taxable income of the tax household.
In addition, contributions to associations providing free food to people in need also qualify for a tax credit of 75% for contributions up to EUR 1,000 (for 2021 and 2022 income).
Note that specific and temporary limitations may be applicable to charitable contributions made to organisations (applicable regime to be checked depending on the charitable contributions made).
Child care expenses
Taxpayers (whether single, married, divorced, or widowed) who carry out an employed or self-employed activity are entitled to a tax credit of up to 50% of childcare expenses incurred for each dependent child under seven placed at nursery school or with non-domestic help, up to a ceiling of expenses of EUR 2,300 per child and per annum.
A tax reduction for schooling expenses is granted to taxpayers whose dependent children study in secondary schools, 'Collège' (EUR 61), 'Lycée' (EUR 153), and university (EUR 183).
Domestic help expenses
A taxpayer who employs housekeeping help can benefit from a tax credit of 50% of the expenses incurred, up to the limit of EUR 12,000 per year (i.e. a maximum tax credit of EUR 6,000) or of EUR 15,000 for the first year of employment, increased by EUR 1,500 per dependent child and dependants over 65 years old, but limited to EUR 15,000 (or EUR 18,000 for the first year of employment). There are specific provisions for invalid taxpayers.
Tax credit on expenses for energy transition
Taxpayers who incur certain major equipment expenses (notably boiler equipment, power generation using renewable energy, heating equipment, storm water treatment, insulating roller shutters) on their principal residence in France may benefit from a tax credit under certain conditions and depending on the type of expenses.
Attention should be paid to the type of expenses incurred as certain conditions must be fulfilled to qualify for a tax credit.
Global limit of tax credits
The reduction of PIT due to tax deductions/credits is globally limited (except in specific cases). The global tax reduction is limited to EUR 10,000 per year (plus EUR 8,000 for investments in SOFICA and DOM-TOM).