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What is the global cap on tax niches?

Verified 01 janvier 2022 - 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 calculation of income tax.

General case

For 2022 taxation of your 2021 income, the total of your tax benefits cannot result in a reduction in the amount of tax owing that exceeds €10 000.

Example :

For tax centre 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 homes, whether you are alone or as a couple, with or without dependants.

The tax benefits may take one of the following forms:

  • Deduction of your taxable income
  • Tax reduction
  • Tax Credit

The overall cap applies to tax benefits for a benefit or investment.

The overall cap does not apply to the following tax benefits:

  • Benefits of your personal situation
  • Advantages of pursuing an objective of general interest without consideration
Global cap on tax benefits (non-exhaustive list)

Purpose of tax benefit

Global cap

Employment of a home employee

Yes

Child care expenses

Yes

Expenditure on energy transition in housing

Yes

Rental investment

Yes

Forest investment

Yes

Subscription to the capital of SOFICA

Yes

Subscription to SME capital

Yes

Overseas Investment

Yes

Establishment costs for dependants

No

Donations to general interest organisations

No

Effects of family quotient

No

Children's tuition

No

Assistance for the elderly/disabled

No

  Please note : for a complete list of tax benefits that are affected by the cap, see practical brochure on income tax . This document also informs you about the application and calculation of the cap.

Overseas Investment

For the 2022 taxation of your 2021 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 homes, whether you are alone or as a couple, with or without dependants.

The tax benefits may take one of the following forms:

  • Deduction of your taxable income
  • Tax reduction
  • Tax Credit

The overall cap applies to tax benefits for a benefit or investment.

The overall cap does not apply to the following tax benefits:

  • Benefits of your personal situation
  • Advantages of pursuing an objective of general interest without consideration
Global cap on tax benefits (non-exhaustive list)

Purpose of tax benefit

Global cap

Employment of a home employee

Yes

Child care expenses

Yes

Expenditure on energy transition in housing

Yes

Rental investment

Yes

Forest investment

Yes

Subscription to the capital of SOFICA

Yes

Subscription to SME capital

Yes

Overseas Investment

Yes

Establishment costs for dependants

No

Donations to general interest organisations

No

Effects of family quotient

No

Children's tuition

No

Assistance for the elderly/disabled

No

  Please note : for a complete list of tax benefits that are affected by the cap, see practical brochure on income tax . This document also informs you about the application and calculation of the cap.

Sofica Investment (cinema)

For the 2022 taxation of your 2021 income, if you made investments in the cinema (Sofica), the total of your tax benefits cannot result in a reduction in the amount of tax owing that exceeds €18 000.

  FYI : the cap is the same for all tax homes, whether you are alone or as a couple, with or without dependants.

The tax benefits may take one of the following forms:

  • Deduction of your taxable income
  • Tax reduction
  • Tax Credit

The overall cap applies to tax benefits for a benefit or investment.

The overall cap does not apply to the following tax benefits:

  • Benefits of your personal situation
  • Advantages of pursuing an objective of general interest without consideration
Global cap on tax benefits (non-exhaustive list)

Purpose of tax benefit

Global cap

Employment of a home employee

Yes

Child care expenses

Yes

Expenditure on energy transition in housing

Yes

Rental investment

Yes

Forest investment

Yes

Subscription to the capital of SOFICA

Yes

Subscription to SME capital

Yes

Overseas Investment

Yes

Establishment costs for dependants

No

Donations to general interest organisations

No

Effects of family quotient

No

Children's tuition

No

Assistance for the elderly/disabled

No

  Please note : for a complete list of tax benefits that are affected by the cap, see practical brochure on income tax . This document also informs you about the application and calculation of the cap.