French General Tax Code
In forceI. - 1. - Contributions or premiums paid by each member of the tax household are deductible from overall net income, subject to the conditions and limits mentioned in 2:
a) to the popular retirement savings plans provided for in article L. 144-2 of the Insurance Code;
b) On an individual and optional basis to contracts taken out under supplementary pension schemes, to which membership is compulsory and set up under the conditions provided for in article L. 911-1 of the Social Security Code, when these contracts are taken out by an employer or a group of employers;
c) To the supplementary pension scheme set up by the Caisse nationale de prévoyance de la fonction publique and to other supplementary pension schemes, to which the provisions of 1° bis of l'article 83, in force until 1st January 2004, had been extended before this date, constituted for the benefit of civil servants and State employees, local authorities and public establishments either with bodies governed by the Mutual Insurance Code, or with companies governed by the Insurance Code, or set up by the bodies mentioned in VII of article 5 of Ordinance no. 2001-350 of 19 April 2001 relating to the Mutual Code and transposing Council Directives 92/49/EEC and 92/96/EEC of 18 June and 10 November 1992, for their collective operations referred to in article L. 222-1 of the Mutual Code;
d) Unless the option provided for in the second paragraph of article L. 224-20 of the Monetary and Financial Code applies, to the retirement savings plans mentioned in article L. 224-1 of the same code or to the French sub-accounts of the pan-European individual retirement savings product mentioned in article L. 225-1 of the said code, which correspond to payments mentioned in 1° of article L. 224-2 of the said code and which are not deducted pursuant to articles 154 bis or 154 bis-0 A.
2. - a) The contributions or premiums referred to in 1 are deductible for each member of the tax household up to an annual limit equal to the difference recorded in respect of the previous year or, for persons who have not been domiciled in France for tax purposes during the three calendar years preceding the year in which they become domiciled there, in respect of that last year, between:
1° a fraction equal to 10% of his/her income from professional activity as defined in II, retained within the limit of eight times the annual amount of the ceiling mentioned in l'article L. 241-3 of the Social Security Code or, if higher, a sum equal to 10% of the annual amount of the aforementioned ceiling;
2° and the cumulative amount of deductible contributions or premiums pursuant to 2° of Article 83 or to retirement savings plans which are in respect of retirement, 2°-0 ter including employer payments, deductible contributions or premiums pursuant to 1° of II of Article 154 bis, article 154 bis-0 A and 13° du II de l'article 156 compte non tenu de leur fraction correspondant à 15 % de la quote-part du bénéfice comprise entre une fois et huit fois le plafond mentionné à l'article L. 241-3 of the Social Security Code, as well as sums paid into retirement savings plans which are exempt pursuant to 18° of Article 81.
Members of a married couple or partners bound by a civil solidarity pact defined in article 515-1 of the Civil Code, subject to joint taxation, may deduct the contributions or premiums referred to in 1, up to an annual limit equal to the total deductible amounts for each member of the couple or each partner in the pact.
b) The difference, where positive, recorded in respect of a year between, on the one hand, the limit defined in a and, on the other hand, the contributions or premiums mentioned in 1 may be used during one of the three following years.
c) (Repealed).
d) Persons who, for reasons unrelated to the implementation of legal, tax or customs procedures, have not been domiciled in France for tax purposes during the three calendar years preceding the year in which they become domiciled in France benefit, in respect of the latter year, from an additional deduction limit equal to three times the amount of the difference defined in a.
II. - The professional income referred to in 1° of a of 2 of I includes:
1. - Salaries and wages defined in Article 79 and remuneration allocated to the managers and partners of the companies mentioned in l'article 62, for their amount determined respectively pursuant to articles 83 to 84 A and the last paragraph of article 62;
2. - Industrial and commercial profits defined in articles 34 and 35, the agricultural profits mentioned in article 63 and the profits from the exercise of a non-commercial profession mentioned in 1 of article 92, for their taxable amount.
The income exempted pursuant to the articles 44 sexies to 44 nonies, 44 terdecies to 44 septdecies or 9 of article 93 as well as the allowances provided for in l'article 73 B are used to assess the amount of income defined in the first paragraph. Income taxed under the conditions provided for in article 151-0 is also taken into account for its amount less, as the case may be, the allowance provided for in 1 of article 50-0 or 1 of l'article 102 ter. Long-term professional capital gains and losses are not taken into account.
