Wealth tax (ISF) reduction for donations to public-interest bodies (ISF-dons)

Article 16 of the TEPA Act creates Article 885-0 V bis A of the General Tax Code: wealth tax (ISF) payers may deduct from their tax 75% of cash donations or donations of listed shares, up to €50,000, made to public or private non-profit research, higher education or arts education institutions, foundations recognised as being of public utility, work-integration organisations, adapted enterprises and the National Research Agency. The €50,000 cap is shared with the reduction for investment in SMEs. The donations are exempt from gift duties. The measure applies to donations made from 20 June 2007, first deductible from the 2008 wealth tax. The ISF reduction ended with the abolition of the wealth tax on 1 January 2018 (the 2017 ISF being the last one concerned). Act No. 2017-1837 of 30 December 2017 (finance act for 2018), which created the real estate wealth tax (IFI), carries over the same mechanism in Article 978 of the General Tax Code ("IFI-dons": 75% of donations, up to €50,000 a year); this separate IFI scheme remains in force.