IR-PME (Madelin) income tax reduction kept at 25% for investments made from 9 May to 31 December 2021
Article 110 of the 2021 Finance Act extends to 31 December 2021 the increased 25% rate of the income tax reduction for subscriptions to the capital of small and medium-sized enterprises (Article 199 terdecies-0 A of the General Tax Code), instead of the standard 18% rate. The increased rate was subject to approval by the European Commission under State aid rules: Decree No. 2021-559 of 6 May 2021 applies it to payments made from the day after its publication, i.e. 9 May 2021. Payments made from 1 January to 8 May 2021 remain subject to the 18% rate.
Measure originators
European origin
EUNo official estimate found for this measure.
Measure impact
Individuals who subscribed to the capital of SMEs between 9 May and 31 December 2021 receive a tax reduction of 25% of the amounts paid instead of 18%, within the payment ceilings of the reduction. No official estimate specific to the extension has been identified.
Official references
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Publication in Official Journal
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP
Council of Ministers
Validation interne