Innovation is a powerful driver of today’s economy and society. It brings new ideas, products and services that improve quality of life and stimulate economic growth. It is also a means of solving global challenges. In short, innovation is an invaluable asset that contributes to a more advanced and prosperous society.
As investors, you can add value to companies with innovative ideas. Becoming a shareholder in a company will enable you to obtain a tax reduction.
The Madelin IR-PME scheme allows you to invest in an SME in exchange for a tax reduction of up to 25%. The scheme is designed to encourage investment in SMEs as a means of fostering innovation. The scheme therefore relies on the investment of private savings. The acquisition of shares in a company is eligible under certain conditions:
– The investor must be a natural person domiciled in France, or in a broader sense a French taxpayer.
– Subscription to the company’s capital must be made in cash: the contribution cannot come from borrowing. As a result, the contribution must be made in cash, in the form of liquid receivables or by conversion of bonds into shares.
– Shares in a company must be acquired through a capital increase. The secondary market is not eligible for the Madelin IR-PME scheme.
– The shares must be held until at least December 31 of the fifth year following subscription.
– The company must not repay the investor’s contribution before December 31 of the seventh year.
In addition, the law provides for a further waiver of this higher rate for payments made up to December 31, 2023.
Subject to meeting the required conditions, this reduction will be 25%, offering an additional incentive to invest in start-ups that need your support and guidance.
We are a start-up in the process of increasing our capital, meeting the eligibility criteria for the IR-PME tax reduction. If you’d like to find out more about our innovation, please visit our website.