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 way to solve 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 these innovative companies. Becoming a shareholder of a company will allow 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%. It aims to encourage investment in SMEs in order to increase innovation. This scheme is therefore based on the investment of private savings. The acquisition of shares in a company is eligible for this scheme under certain conditions:
– The investor must be a natural person, domiciled in France and in a broader framework a French taxpayer. – The subscription to the company’s capital must be made in cash: the contribution cannot be derived from a loan. Therefore, the contribution must be made in cash, by liquid claims or conversion into shares of bonds. – The acquisition of shares in a company must be made during a capital increase. The secondary market of the securities is not eligible for the Madelin IR-PME scheme. – The holder must keep his or her securities at least until December 31 of the fifth year following the subscription of the shares. – The company must not reimburse the investor’s contributions before December 31 of the seventh year.
In addition, the law provides for a new extension of this increased rate for payments made until December 31, 2023. Provided you meet the required conditions, this reduction will be 25%, which offers an additional incentive to invest in startups that need your support and guidance.
We are a start-up company in the process of increasing its capital, meeting the eligibility criteria for the IR-PME tax reduction. If you want to know more about our innovation, please visit our website.