Family Tax Credit (FTC)

Verified 07 October 2025 - Directorate of Legal and Administrative Information (Prime Minister)

The purpose of the Family Tax Credit (FTC) is to encourage companies to incur expenses that enable their employees to reconcile their family and professional lives. It allows companies to deduct a portion of their expenses from their taxes. The CIF rate varies by category of expenditure incurred. The amount of the tax credit is capped at €500,000/year.

Any company who has employees may benefit from the tax credit if it is subject to a actual tax regime (normal real speed or simplified real speed). The company may be subject to income tax (IR) or to business tax (IS).

A company subject to the micro-company system cannot therefore benefit from the family tax credit.

The Family Tax Credit (FTC) covers the following expenses:

  • Expenditure for the establishment and operation of a private institution for children under 6 years of age. This facility must be directly operated by the company and must accommodate the children of its elderly employees under 3 years of age
  • Payments made directly by the company for the care of children of its employees under 3 years of age in private or public bodies
  • Expenditure to finance personal services.

Tax Credit Rate

The rate of the tax credit varies depending on the type of expenditure carried out by the company.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Expenditure on the care of children in an establishment

This relates to the following expenditure:

  • Expenditure on the establishment and operation of private establishments for children under 6 years of age (crèche, day-care center)
  • Payments made for the care of children in establishments run by bodies outside the company (crèche, day-care center)

The tax credit corresponds to 50% the amount of such expenditure.

Expenditures to fund Human Services (AMP)

This concerns expenditure paid to employees by the company committee or the company itself and intended to finance or facilitate access to:

  • To activities falling within the scope of Human Services (AMP)
  • Activities provided by private institutions for children under 6 years of age

The tax credit corresponds to 25% the amount of expenditure, within the limit of €2,540 by calendar year and by beneficiary.

The calculation of the family tax credit is made by calendar year.

Its amount is capped at €500,000 per year.

Deduction of grants received

The public aid (grants) received by the company in respect of their expenses eligible for the family tax credit (CIF) are deducted from the calculation basis the tax credit. This aid is therefore not counted as an expenditure when calculating the CIF.

The aid to be deducted from the basis for calculating the CIF is that paid in the year in respect of which the tax credit is calculated.

Example :

A company spends €50,000 for the reception of the children of its employees in a specialized establishment and €275,000 to fund personal services.

The amount of the credit she will receive is equal to €50,000 x 50% + €275,000 x 25% = €93,750.

If his tax is equal to €250,000 in 2024, with the benefit of the tax credit, this amount will equal €250,000 - €93,750 = €156,250

The rules vary depending on the company's tax system.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Company subject to income tax (IR)

The company subject to income tax (IR) must send the calculation aid sheet No. 2069-FA-SD at the same time as his supplementary income tax return No 2042 C pro.

Company subject to business tax (IS)

The company subject to business tax (IS) must attach the tax form No. 2069-FA to its IS balance statement No. 2572-SD.

The tax credit allows decrease the amount of tax that the company must pay, which will reduce the amount of the tax credit.

Where the amount of the tax credit to which the company is entitled is greater than the amount of its tax, the tax authorities shall pay it refunds the surplus.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Company subject to income tax (IR)

The company must carry forward the amount of the tax credit it is claiming on its tax return No. 2042-C-PRO.

Company subject to business tax (IS)

The company must apply for a refund using the following document:

Corporate tax and similar contributions - Application for a refund of tax credits

This can be done:

Who can help me?

The public service accompanying companies

Do you have a project, a difficulty, a question of everyday life?
Simple and free: you are called back within 5 days by THE advisor who can help you.

Get a phone call with an advisor