Tax reduction (IR-PME) for subscription to a business' capital

Verified 23 February 2026 - Entreprendre Service Public / (Prime Minister)

A natural person who subscribed in cash to the capital of a business may benefit from tax reduction.

Since 1er January 2024, this " Madelin discount ’ shall also be eligible for payments to Young Innovative companies (JEI) or Breakthrough JEI (JEIR). Since February 21, 2026, the system has been extended to Young Innovative Impact companies (JEII).

General scenario

Subscription to the capital consists of cash contribution (deposit of money) to a business. From this contribution, the subscriber (or rapporteur) becomes a partner or shareholder and obtains the rights attached to this status (right to dividends, right to vote, etc.).

Please note

One current account advance (loan of a partner to the business) don't open straight the tax cut.

In order for the tax reduction to be applicable, the subscriber, the beneficiary business of the subscription and the subscription itself must specific criteria.

Subscriber Conditions

To benefit from the tax reduction, the subscriber must meet the following conditions :

  • Be a natural person (individual business or individual)
  • Be domiciled for tax purposes in France
  • Make a commitment to keep the securities received in exchange for subscription (shares or shares) for 5 years.

Please note

The tax reduction benefits in particular company creators who bring the funds from their own business. The capital increases are also affected by the scheme, but on condition that they are new members or shareholders.

Conditions linked to the business benefiting from the subscription

The beneficiary business of the subscription must complete all of the following conditions :

  • She's a PME.
  • It has been operating since less than 10 years after registration, or under 7 years old from the opening date of the financial year in which the company's turnover exceeds for the first time the threshold of €250,000.
  • It shall have its seat in a Member State of the(UE) or in a State of(EEE).
  • It is subject to thebusiness tax (IS) or would be subject to it under the same conditions if its activity were carried out in France.
  • It is not qualified ascompany in difficulty. In concrete terms, the company must not have lost more than half of its share capital or be subject to a collective procedure (backup, turnaround or bankruptcy).
  • It employs at least 2 employees at the closing date of the financial year following the subscription or at least 1 employee in the case of a craft company.
  • She doesn't own of assets predominantly constituted (i.e. more than 50%) by precious metals, works of art, collectors' items, antiques, racehorses or competition horses or, unless the very object of its activity consists in their consumption or their retail sale, wines or spirits.
  • She's not not admitted to a regulated market (i.e. not listed on the stock exchange)
  • It pursues a commercial, industrial, craft, liberal or agricultural activity, except for the following activities :
    • Activities with guaranteed revenues due to the existence of a regulated feed-in tariff
    • Financial activities
    • Movable assets management activities
    • Real estate activities, including the construction of buildings for sale or lease.

Conditions related to the subscription

The subscription must meet all of the following conditions :

  • It is carried out in cash (deposit of money).
  • It is carried out either during the constitution of the business, or during a capital increase provided they are new partners or shareholders.
  • It confers only the rights attached to the status of partner or shareholder. The subscription must not offer any additional consideration (e.g. preferential rates for goods or services of the business).
  • She's bringing no capital guarantee agreement to members or shareholders in return for their subscription. This condition must be met on the date of subscription and continuously until the end of the 5e year following the year of this subscription.
  • It is not carried out after repayment of contributions in favor of the subscriber made by the business within the previous 12 months.
  • The total amount of payments received by the beneficiary business shall not exceed €16.5 million.

Please note

Subscriptions to the capital of a business holding animator entitle to the tax advantage when the holding company has been incorporated and controls at least one subsidiary for at least 12 months.

The tax reduction for subscription to the capital of a PME must respect various limits and ceilings.

Applicable rates

The rate of the tax reduction varies depending on the type of company for whose benefit the payment was made.

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General scenario

The amount of the tax reduction is equal to 18% payments made in respect of subscriptions to the capital of a PME.

Solidarity businesses: ESUS and SFS

For any subscription to the capital of a Social Solidarity company (ESUS) or a Solidarity Land business (SFS), the amount of the IR-PME tax reduction shall be increased by 25%. It applies to payments made between 28 June 2024 and 30 September 2026.

Warning  

The effective application of the increased rate of 25% is subordinate, for payments from 1er October 2026 the prior validation of the scheme by the European Commission in the light of the State aid rules and the publication of a decree setting the date of its entry into force.

Consequently, the benefit of the 25% remains conditional on this decision.

In order to preserve historic monuments, this system has been extended to subscriptions to the capital of land businesses for the preservation and enhancement of historic monuments and protected sites, parks and gardens.

This tax reduction applies to payments made since 28 september 2025.

A joint and several company produces goods or services to strong social and/or environmental utility. These companies operate in different fields and have the objective of solving problems of general interest : combating unemployment, exclusion, poor housing, development of organic farming, renewable energy, assistance to developing countries, etc.

In order to obtain the « solidarity-based social utility company » (ESUS) approval, the company must meet the following conditions :

  • The company must have as its main objective the search for social utility (support for vulnerable groups, territorial cohesion or sustainable development). This objective must be included in the company's statutes.
  • The burden induced by this social utility objective must have a significant impact on the company's income statement or profitability.
  • The 5 employees or managers must not receive, on average, a remuneration greater than 7 times the SMIC and the highest salary of the company must not exceed 10 times the amount of the SMIC.
  • Company equity securities must not be traded on a financial market.

Approval shall be granted for a period of 2 years for companies that have been in existence for less than 3 years at the time of application, and 5 years for the others.

Mutual Funds for Innovation (MCIF)

The rate of the tax reduction is fixed at 25%.

The reduction shall apply to payments made from September 28, 2025 at February 20, 2026.

Warning  

As of February 21, 2026, the rate of reduction of 25% is reserved only for subscriptions of FCPI units invested in JEI: titleContent. As a result, the FCPIs say: classics are no longer eligible for the income tax reduction scheme under the IR-PME.

Warning  

Subscriptions of shares made through local investment funds (FIP) invested in Corsica and the overseas departments and regions (DROM) should soon benefit from the IR-PME scheme, subject to the approval of the European Commission.

Maximum amount of reduction

The amount of the tax reduction follows a system of double capping, 2 limits are applied one after the other.

On the one hand, the amount of the payments taken into account for the calculation of the tax reduction shall be limited as follows:

  • €50,000 / year for a single, widowed or divorced person
  • €100,000 / year for a married or entered into a civil partnership couple subject to common taxation

The portion of the payments that exceeds this first limit is eligible for the tax reduction for the next 4 years within the same limits.

On the other, this tax reduction is then taken into account in the overall cap on tax benefits which may be granted in respect of income tax. This overall limit is set at €10,000 per year. It is also possible to carry over the excess of income tax due in subsequent years up to and including one-fifth.

Example :

In January 2026, a single person creates his business and subscribes to the capital of it up to €70,000. The applicable rate shall be 18%.

In the year of payment (year N), the amount of payments taken into account is limited to €50,000 for a single person (the €20,000 the remainder will be taken into account the following year). The taxpayer therefore benefits from a reduction of €9,000 (18% of €50,000).

The following year (N+1), the taxpayer benefits from a reduction of €3,600 for the remaining part of the payments (i.e. 18 % of €20 000).

Example :

In February 2026, a married couple set up their business and subscribed to its capital to the tune of €110,000. The applicable rate shall be 18%.

In the year of payment (year N), the amount of payments taken into account is limited to €100,000 (the €10,000 the remainder will be taken into account the following year). The couple therefore benefits from a reduction of €18,000 (18 % of €100 000), capped at €10,000 per year. The excess fraction is equal to €8,000 is carried over to the following year.

The following year (N+1), the couple benefits from a €1,800 for the remaining part of the payments (i.e. 18 % of €10 000) and a reduction of €8,000 corresponding to the carry-over of year N. Thus, in year N+1, the couple benefits from a total reduction of €9,800.

However, where the amount of the tax reduction is greater than the amount of the tax payable by the taxpayer, the portion which could not be charged shall not give rise to neither a refund nor a deferral on the tax payable in respect of subsequent years.

To benefit from the tax reduction, the subscriber must attach to his annual tax return one individual state provided by the business in whose capital it subscribed.

This individual report must include the following information :

  • Object for which this state is established
  • Reason, purpose and registered office of the business
  • Identity and address of the subscriber
  • Number of securities subscribed and their amount and date of subscription
  • Amount and date of payments made in respect of the subscription.

The individual statement must also state that the recipient business fulfills all the requirements (PME, unlisted, operating less than 10 years after registration or less than 7 years after its first commercial sale, etc.).

FYI  

The subscriber must be able to produce, at the request of the tax administration and for 5 years after the investment, any document of such a nature as to justify the duration of detention of his titles.

The tax cut is not not final. It can be called into question when various events occur. We then speak of « replay ».

Thus, the tax reduction granted is questioning in the following cases

  • The business reimburses the contribution to the subscriber before 31 December of the 7e year following the year of subscription. Reimbursement may in particular take place at the time of reduction of share capital.
  • The subscriber assigns all or part of its securities before 31 December of the 5the year following the year of subscription. In other words, it is not meeting its five-year custodial commitment. However, whatever the cause of the transfer, the tax reduction is not not questioned if the following conditions are met:
    • The subscriber retained the securities for at least 3 years after they have been subscribed.
    • The subscriber reinvests the entire sale price securities sold (less taxes generated by this sale) in subscription for new securities of eligible businesses, within a maximum period of 12 months from the sale.
    • New securities subscribed for in this way shall be retained until the end of the initial period of 5 years.

Please note

The tax cut is not called into question in the event of dismissal, death or invalidity of 2e or 3e category of subscriber. The same applies in the event of the judicial liquidation of the business, its merger or the donation of the securities if the donee resumes the obligation to keep the securities.

Subscription to the capital of a JEI

Subscription to the capital consists of cash contribution (deposit of a sum of money) in favor of a Young Innovative company (JEI). From this contribution, the subscriber (or rapporteur) becomes a partner or shareholder and obtains the rights attached to this status (right to dividends, right to vote...)..

Please note

One current account advance (loan of a partner to the business) don't open straight the tax cut.

In order for the tax reduction to be applicable, the subscriber, the beneficiary business of the subscription and the subscription itself must specific criteria.

Subscriber Conditions

To benefit from the tax reduction, the subscriber must meet the following conditions :

  • Be a natural person (individual business or individual)
  • Be domiciled for tax purposes in France
  • Make a commitment to keep the securities received in exchange for subscription (shares or shares) for 5 years.

Please note

The tax reduction benefits in particular company creators who bring the funds from their own business. The capital increases are also affected by the scheme, but on condition that they are new members or shareholders.

Conditions linked to the business benefiting from the subscription

The beneficiary business of the subscription must be a Young Innovative company (JEI) satisfying the following conditions:

  • She's a PME.
  • It has been created ever since under 8 years old.
  • She makes Research and Development (R&D) expenditure representing at least 15% of its charges. This rate does not take into account the costs of disposals of shares or bonds, foreign exchange losses and expenses incurred with other JEIs carrying out R&D projects.
  • It exercises a new activity, i.e. it was not created as part of a concentration, a restructuring, an extension of existing activities or a resumption of such activities.
  • Its capital must be held for at least 50% by the following persons or entities:
    • Natural persons: individual entrepreneur (EI), private individual
    • Other JEI held at least 50% by natural persons
    • Associations or foundations recognized as being of public utility of a scientific nature
    • Public research and educational institutions or any of their subsidiaries
    • Investment businesses

Conditions related to the subscription

The subscription must meet all of the following conditions :

  • It is carried out in cash (deposit of money).
  • It is carried out between 1er January 2024 and December 31, 2028.
  • It is carried out either during the constitution of the business, or during a capital increase provided they are new partners or shareholders.
  • It confers only the rights attached to the status of partner or shareholder. The subscription must not offer any additional consideration (e.g. preferential rates for goods or services of the business).
  • She's bringing no capital guarantee agreement to members or shareholders in return for their subscription. This condition must be met on the date of subscription and continuously until the end of the 5e year following the year of this subscription.
  • It is not carried out after repayment of contributions in favor of the subscriber made by the business within the previous 12 months.
  • The total amount of payments received by the beneficiary business shall not exceed €16.5 million.

Please note

Subscriptions to the capital of a business holding animator entitle to the tax advantage when the holding company has been incorporated and controls at least one subsidiary for at least 12 months.

The tax reduction for subscription to the capital of a young innovative company (JEI) must comply with a ceiling.

Applicable Rate

The amount of the tax reduction is equal to 30% payments made in respect of subscriptions to the capital of the JEI.

Please note

This limit also applies to cash subscriptions of units of Innovation Mutual Funds (IUFs) that invest in JEIs, for the purposes of payments made as of 21 february 2026.

Maximum amount of reduction

The amount of payments taken into account for the calculation of the tax reduction is limited as follows:

  • €75,000 for a single, widowed or divorced person
  • €150,000 for a married or entered into a civil partnership couple subject to common taxation

The fraction of a year exceeding the ceilings shall not be not reportable in subsequent years, this fraction is lost.

Example :

In January 2026, a single person creates his business and subscribes to the capital of it up to €80,000. The applicable rate shall be 30%.

In the year of payment (year N), the amount of payments taken into account is limited to €75,000 (the €5,000 remaining are lost). The taxpayer therefore benefits from a tax reduction of €22,500 (30% of €75,000).

To benefit from the tax reduction, the subscriber must attach to his annual tax return one individual state provided by the business in whose capital it subscribed.

This individual report must include the following information :

  • Object for which this state is established
  • Reason, purpose and registered office of the business
  • Identity and address of the subscriber
  • Number of securities subscribed and their amount and date of subscription
  • Amount and date of payments made in respect of the subscription.

The individual statement must also state that the recipient business fulfills all the requirements (PME, created less than 8 years ago, 15% of R&D expenses, etc.).

Warning  

For the subscriptions in cash of shares of FCPI: titleContent invested in JEI: titleContent, the individual statement issued by the fund management business must explicitly state that the fund complies with a minimum investment quota in securities of businesses qualifying as JEI, under the conditions giving rise to the right to the tax reduction.

The subscriber must be able to produce, at the request of the tax administration and for 5 years after the investment, any document of such a nature as to justify the duration of detention of his titles.

The tax cut is not not final. It can be called into question when various events occur. We then speak of «replay».

Thus, the tax reduction granted is questioning in the following cases

  • The business reimburses the contribution to the subscriber before 31 December of the 7e year following the year of subscription. Reimbursement may in particular take place at the time of reduction of share capital.
  • The subscriber assigns all or part of its securities before 31 December of the 5the year following the year of subscription. In other words, it is not meeting its five-year custodial commitment. However, whatever the cause of the transfer, the tax reduction is not not questioned if the following conditions are met:
    • The subscriber retained the securities for at least 3 years after they have been subscribed.
    • The subscriber reinvests the entire sale price securities sold (less taxes generated by this sale) in subscription for new securities of eligible businesses, within a maximum period of 12 months from the sale.
    • New securities subscribed for in this way shall be retained until the end of the initial period of 5 years.

Please note

The tax cut is not called into question in the event of dismissal, death or invalidity of 2e or 3e category of subscriber. The same applies in the event of the judicial liquidation of the business, its merger or the donation of the securities if the donee takes over the obligation to keep the securities.

Subscription to the capital of a JEIR

Subscription to the capital consists of cash contribution (deposit of money) for the benefit of a young innovative company of rupture (JEIR). From this contribution, the subscriber (or rapporteur) becomes a partner or shareholder and obtains the rights attached to this status (right to dividends, right to vote...)..

Please note

One current account advance (loan of a partner to the business) don't open straight the tax cut.

In order for the tax reduction to be applicable, the subscriber, the beneficiary business of the subscription and the subscription itself must specific criteria.

Subscriber Conditions

To benefit from the tax reduction, the subscriber must meet the following conditions :

  • Be a natural person (individual business or individual)
  • Be domiciled for tax purposes in France
  • Make a commitment to keep the securities received in exchange for subscription (shares or shares) for 5 years.

Please note

The tax reduction benefits in particular company creators who bring the funds from their own business. The capital increases are also affected by the scheme, but on condition that they are new members or shareholders.

Conditions linked to the business benefiting from the subscription

The beneficiary business of the subscription must be a Young innovative company of rupture (JEIR) satisfying the following conditions:

  • She's a PME.
  • It has been created ever since under 8 years old.
  • She makes Research and Development (R&D) expenditure representing at least 30% of its charges. This rate does not take into account the costs of disposals of shares or bonds, foreign exchange losses and expenses incurred with other JEIs carrying out R&D projects.
  • It exercises a new activity, i.e. it was not created as part of a concentration, a restructuring, an extension of existing activities or a resumption of such activities.
  • Its capital must be held for at least 50% by the following persons or entities:
    • Natural persons: individual entrepreneur (EI), private individual
    • Other JEI held at least 50% by natural persons
    • Associations or foundations recognized as being of public utility of a scientific nature
    • Public research and educational institutions or any of their subsidiaries
    • Investment businesses

Conditions related to the subscription

The subscription must meet all of the following conditions :

  • It is carried out in cash (deposit of money).
  • It is carried out between 1er January 2024 and December 31, 2028.
  • It is carried out either during the constitution of the business, or during a capital increase provided they are new partners or shareholders.
  • It confers only the rights attached to the status of partner or shareholder. The subscription must not offer any additional consideration (e.g. preferential rates for goods or services of the business).
  • She's bringing no capital guarantee agreement to members or shareholders in return for their subscription. This condition must be met on the date of subscription and continuously until the end of the 5e year following the year of this subscription.
  • It is not carried out after repayment of contributions in favor of the subscriber made by the business within the previous 12 months.
  • De minimis aid granted to business must not exceed an overall maximum of €300,000 over 3 fiscal years.

Please note

Subscriptions to the capital of a business holding animator entitle to the tax advantage when the holding company has been incorporated and controls at least one subsidiary for at least 12 months.

The tax reduction for subscription to the capital of a young innovative research company (JEIR) must comply with a ceiling.

Applicable Rate

The amount of the tax reduction is equal to 50% payments made in respect of subscriptions to the capital of JEIR.

Maximum amount of reduction

The amount of payments taken into account for the calculation of the tax reduction is limited as follows:

  • €50,000 for a single, widowed or divorced person
  • €100,000 for a married or entered into a civil partnership couple subject to common taxation

The fraction of a year exceeding the ceilings shall not be not reportable in subsequent years, this fraction is lost.

Example :

In January 2026, a single person creates his business and subscribes to the capital of it up to €60,000. The applicable rate shall be 50%.

In the year of payment (year N), the amount of payments taken into account is limited to €50,000 (the €10,000 remaining are lost). The taxpayer therefore benefits from a tax reduction of €25,000(50% of €50,000).

Please note

The benefit of the tax reduction is subject to compliance with Commission UE (EC) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European de minimis aid.

This exemption is subject to the de minimis rule. This means that it is limited to €300,000 over 3 rolling fiscal years.

The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time when each new de minimis aid is granted. For each new de minimis aid granted, account must be taken of the total amount of aid de minimis granted in the previous 3 years.

To benefit from the tax reduction, the subscriber must attach to his annual tax return one individual state provided by the business in whose capital it subscribed.

This individual report must include the following information :

  • Object for which this state is established
  • Reason, purpose and registered office of the business
  • Identity and address of the subscriber
  • Number of securities subscribed and their amount and date of subscription
  • Amount and date of payments made in respect of the subscription.

The individual statement must also state that the recipient business fulfills all the requirements (PME, created less than 8 years ago, 30% of R&D expenses, etc.).

FYI  

The subscriber must be able to produce, at the request of the tax administration and for 5 years after the investment, any document of such a nature as to justify the duration of detention of his titles.

The tax cut is not not final. It can be called into question when various events occur. We then speak of « replay ».

Thus, the tax reduction granted is questioning in the following cases

  • The business reimburses the contribution to the subscriber before 31 December of the 7e year following the year of subscription. Reimbursement may in particular take place at the time of reduction of share capital.
  • The subscriber assigns all or part of its securities before 31 December of the 5the year following the year of subscription. In other words, it is not meeting its five-year custodial commitment. However, whatever the cause of the transfer, the tax reduction is not not questioned if the following conditions are met:
    • The subscriber retained the securities for at least 3 years after they have been subscribed.
    • The subscriber reinvests the entire sale price securities sold (less taxes generated by this sale) in subscription for new securities of eligible businesses, within a maximum period of 12 months from the sale.
    • New securities subscribed for in this way shall be retained until the end of the initial period of 5 years.

Please note

The tax cut is not called into question in the event of dismissal, death or invalidity of 2e or 3e category of subscriber. The same applies in the event of the judicial liquidation of the business, its merger or the donation of the securities if the donee resumes the obligation to keep the securities.

Subscription to the capital of a JEII

Subscription to the capital consists of cash contribution (deposit of a sum of money) in favor of a Young innovative impact company (JEII)). From this contribution, the subscriber (or rapporteur) becomes a partner or shareholder and obtains the rights attached to this status (right to dividends, right to vote, etc.).

Please note

One current account advance (loan of a partner to the business) don't open straight the tax cut.

In order for the tax reduction to be applicable, the subscriber, the beneficiary business of the subscription and the subscription itself must specific criteria.

Subscriber Conditions

To benefit from the tax reduction, the subscriber must meet the following conditions :

  • Be a natural person (individual business or individual)
  • Be domiciled for tax purposes in France
  • Make a commitment to keep the securities received in exchange for subscription (shares or shares) for 5 years.

Please note

The tax reduction benefits in particular company creators who bring the funds from their own business. The capital increases are also affected by the scheme, but on condition that they are new members or shareholders.

Conditions linked to the business benefiting from the subscription

The beneficiary business of the subscription must be a Young Innovative Impact company (JEII) satisfying the following conditions:

  • She's a PME.
  • It has been created ever since under 8 years old.
  • It must carry out R&D expenditure representative enter 5% and 20% of charges. This rate does not take into account the costs of disposals of shares or bonds, foreign exchange losses and expenses incurred with other JEIs carrying out R&D projects.
  • It exercises a new activity, i.e. it was not created as part of a concentration, a restructuring, an extension of existing activities or a resumption of such activities.
  • Its capital must be held for at least 50% by the following persons or entities:
    • Natural persons: individual entrepreneur (EI), private individual
    • Other JEI held at least 50% by natural persons
    • Associations or foundations recognized as being of public utility of a scientific nature
    • Public research and educational institutions or any of their subsidiaries
    • Investment businesses
  • It must respond to the ESUS criteria « solidarity company of social utility » or the conditions required by commercial businesses to be covered by thesocial and solidarity economy (SSE).

Conditions related to the subscription

The subscription must meet all of the following conditions :

  • It is carried out in cash (deposit of money).
  • It is carried out between 21 February 2026 and 31 December 2028.
  • It is carried out either during the constitution of the business, or during a capital increase provided they are new partners or shareholders.
  • It confers only the rights attached to the status of partner or shareholder. The subscription must not offer any additional consideration (e.g. preferential rates for goods or services of the business).
  • She's bringing no capital guarantee agreement to members or shareholders in return for their subscription. This condition must be met on the date of subscription and continuously until the end of the 5e year following the year of this subscription.
  • It is not carried out after repayment of contributions in favor of the subscriber made by the business within the previous 12 months.
  • The total amount of payments received by the beneficiary business shall not exceed €16.5 million.

Please note

Subscriptions to the capital of a business holding animator entitle to the tax advantage when the holding company has been incorporated and controls at least one subsidiary for at least 12 months.

The tax reduction for subscription to the capital of a young innovative impact company (JEII) must comply with a ceiling.

Applicable rates

The rate of the tax reduction varies depending on the type of company for whose benefit the payment was made.

The amount of the tax reduction is equal to 40% payments made in respect of subscriptions to the capital of the JEII: titleContent.

The reduction applies to payments from 21 February 2026 to 31 December 2028.

The amount of payments taken into account for the calculation of the tax reduction is limited as follows:

  • €50,000 for a single, widowed or divorced person
  • €100,000 for a married or entered into a civil partnership couple subject to common taxation

The fraction of a year exceeding the ceilings shall not be not reportable in subsequent years, this fraction is lost.

Warning  

The Innovation Mutual Fund (IFIT) subscriptions invested in JEII should soon be eligible for an IR-PME tax reduction 30%, subject to the agreement of the European Commission.

To benefit from the tax reduction, the subscriber must attach to his annual tax return one individual state provided by the business in whose capital it subscribed.

This individual report must include the following information :

  • Object for which this state is established
  • Reason, purpose and registered office of the business
  • Identity and address of the subscriber
  • Number of securities subscribed and their amount and date of subscription
  • Amount and date of payments made in respect of the subscription.

The individual statement must also state that the recipient business fulfills all the requirements (PME, unlisted, operating less than 10 years after registration or less than 7 years after its first commercial sale, etc.).

FYI  

The subscriber must be able to produce, at the request of the tax administration and for 5 years after the investment, any document of such a nature as to justify the duration of detention of his titles.

The tax cut is not not final. It can be called into question when various events occur. We then speak of « replay ».

Thus, the tax reduction granted is questioning in the following cases

  • The business reimburses the contribution to the subscriber before 31 December of the 7e year following the year of subscription. Reimbursement may in particular take place at the time of reduction of share capital.
  • The subscriber assigns all or part of its securities before 31 December of the 5the year following the year of subscription. In other words, it is not meeting its five-year custodial commitment. However, whatever the cause of the transfer, the tax reduction is not not questioned if the following conditions are met:
    • The subscriber retained the securities for at least 3 years after they have been subscribed.
    • The subscriber reinvests the entire sale price securities sold (less taxes generated by this sale) in subscription for new securities of eligible businesses, within a maximum period of 12 months from the sale.
    • New securities subscribed for in this way shall be retained until the end of the initial period of 5 years.

Please note

The tax cut is not called into question in the event of dismissal, death or invalidity of 2e or 3e category of subscriber. The same applies in the event of the judicial liquidation of the business, its merger or the donation of the securities if the donee resumes the obligation to keep the securities.

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