What is the overall cap on tax loopholes?
Verified 17 April 2023 - Legal and Administrative Information Directorate (Prime Minister)
The overall cap on tax benefits (tax niches) is to limit the amount of tax benefits you can receive each year for the purpose of calculating income tax.
Répondez aux questions successives et les réponses s’afficheront automatiquement
General case
For the 2023 taxation of your 2022 income, the total of your tax benefits cannot give you a reduction in the amount of tax owing greater than €10,000.
Example :
For a tax shelter which benefits from home employment tax credit of €6,000 and a tax reduction for Pinel rental investment of €5,000.
€6,000 + €5,000 = €11,000.
The amount exceeds the overall cap limit.
Your tax benefit is therefore limited to €10,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply to the following tax benefits:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Yes | |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Overseas investment
For the 2023 taxation of your 2022 income, if you also made investments overseas, the total of your tax benefits cannot provide you with a reduction in the amount of tax owing greater than €18,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply to the following tax benefits:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Yes | |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
Investment Sofica (cinema)
For the 2023 tax on your 2022 revenues, if you made investments in cinema (Sofica), the total of your tax benefits cannot give you a reduction in the amount of tax due greater than €18,000.
FYI
the cap is the same for all tax households, whether you are alone or in a relationship, with or without a dependent.
Tax advantages the affected may take one of the following forms:
- Deduction from your taxable income
- Tax reduction
- Tax credit
The global cap applies to tax benefits granted in return for a benefit or investment.
The overall cap does not apply to the following tax benefits:
- Benefits related to your personal situation
- Benefits of pursuing an objective of general interest without consideration
Purpose of the tax advantage | Global cap |
|---|---|
Yes | |
Yes | |
Rental investment | Yes |
Forestry investment | Yes |
Yes | |
Subscription to SME capital | Yes |
Overseas investment | Yes |
No | |
No | |
Effects of family quotient | No |
No | |
Assistance for the elderly/disabled | No |
Please note
for a complete list of the tax benefits affected by the cap, see the practical income tax brochure. This document also informs you about the application and calculation of the cap.
- Income tax: return and reportable incomeService-Public.fr
- Income tax: deductions, reductions and tax creditsService-Public.fr
- Income Tax - Tax CalculationService-Public.fr
- 2023 Practice Brochure - 2022 Income Tax ReturnMinistry of Finance