The IR-PME scheme is a French government scheme, designed to help SME raise finance, by offering a range of tax relief to investors who purchase new shares in those companies.
Eligible investors who invest in an eligible company may receive income tax relief of 18% on funds invested from January 1, 2024. The previous rate was 25% until December 31, 2023.
The maximum amount of investment that investor will be able to take advantage of tax relief on is
- €50,000 per year for a single, widowed or divorced person.
- €100,000 per year for a married or civil union couple subject to joint taxation.
If your invested amount exceeds these limits, you can get a tax reduction for the next four years, as long as you stick to those same limits. The overall limit on tax benefits that can be granted in respect of income tax is set at €10,000 per year.
The income tax relief will be 30% on funds invested if the investment is made between January 1, 2024 and December 31, 2028 in a Young Innovative Company (“Jeune Entreprise Innovante”), up to a limit of
- €75,000 per year for a single, widowed or divorced person.
- €150,000 per year for a married or civil union couple subject to joint taxation.
The income tax relief will be 50% on funds invested if the investment is made between January 1, 2024 and December 31, 2028 in a Young Disruptive Innovative Company (“Jeune Entreprise d’Innovation de Rupture”), up to a limit of:
- €50,000 per year for a single, widowed or divorced person.
- €100,000 per year for a married or civil union couple subject to joint taxation.
The total benefit may not result in a tax relief of more than €50,000 over the period from January 1, 2024 to December 31, 2028 for the investment in Young Innovative Companies or Young Disruptive Innovative Companies.
The legislator may introduce periodic updates to the tax regime, so all of this is subject to change according to French tax laws.