Director Training Tax Credit
Certain amounts invested by the company for the training of executives are eligible for a tax credit.
I. Companies concerned
The tax credit is reserved for industrial, commercial, craft, craft, liberal or agricultural companies that are subject to IR (Impôt sur le Revenu) or IS (Incorporation Tax) under an actual tax regime. Companies exempt from tax through spatial planning schemes also benefit from the scheme.
II. Officers concerned
The tax credit applies. Individual entrepreneurs. To the managers of SNC, SCA, SARL. The Chairman of the Board of Directors and the Chief Executive Officers of SA. To the President and Chief Executive Officers of SAS.
III. Expenditure concerned
Expenses eligible for the tax credit are those attributable to continuing vocational training required of employers (for example, expenses to acquire, maintain or upgrade the manager's skills). Training provided free of charge and paid training are not eligible for the tax credit.
IV. Amount of the tax credit
Calculation of the tax credit: The tax credit is equal to the the hours of training taken, capped at 40 hours per calendar year and per company (regardless of the number of executives concerned in the company), by the SMIC hourly rate in effect on December 31 of the year for which the tax credit is calculated. For the financial years ended during the year, the tax credit is calculated on the basis of the training hours followed during the last calendar year. Use of the tax credit: The tax credit is used to pay the IR (Impôt sur le Revenu) or IS (Incorporation Tax) due by the company for the year in which the executive completed his or her training hours. In companies subject to the IR, the tax credit is transferred to the shareholders and deducted from their personal tax in proportion to their rights if they effectively participate in the operation. The unused credit is refunded.
The tax credit is calculated by the company on the corresponding worksheet which serves as proof in case of a request from the tax authorities.