Deduction of retirement savings contributions (PERP and similar schemes) from taxable income

Article 111 of the Act of 21 August 2003 reforming pensions creates Article 163 quatervicies of the General Tax Code: contributions to the popular retirement savings plan (PERP, created by Article 108 of the same Act) and to certain optional supplementary pension schemes (including Préfon and civil servants' supplementary schemes) are deductible from total net income. Article 82 of the 2004 Finance Act sets the annual limit at 10% of professional income capped at eight times the social security ceiling, or 10% of that ceiling if higher, less pension contributions already deductible elsewhere. Any unused allowance can be carried forward for three years. The scheme applies from the taxation of 2004 income.