SME tax reduction / tax funds: an order limits intermediation fees

Effective June 20, a ceiling on intermediation fees levied for the marketing of FCPIs, FIPs and investment in SMEs comes into effect. This concerns the management companies offering FIP and FCPI as well as the participative investment advisors (CIP). comment défiscaliser en immobilier
An order – for the purpose of the 3 ° of I of article 74 of the law n ° 2017-1837 of the 30 December 2017 of finances for 2018 – sets the maximum of direct and indirect expenses and commissions charged by the intermediaries intervening in the framework of a payment benefiting from the 18% tax reduction provided for in Article 199 terdecies-0 A of the General Tax Code (an advantage which should be increased to 25% this year) for investment in innovation (FCPI), local investment funds (FIP) and investment in SMEs. investissement défiscalisant
Fees and commissions are capped as a percentage of the payment that resulted in the tax reduction. Fees and commissions charged in connection with the payment (including but not limited to: management, distribution, advisory fees, etc.) are subject to an overall cap of 30% of the payment (in total over the term of the investment) whether invoiced directly to the subscriber or indirectly, by billing to the company that is the subject of the investment. The fees charged to companies subject to investment are subject to a sub-ceiling of 5% payment.
In addition, fees and commissions are subject to annual or multi-year ceilings in order to ensure that the interests of the subscriber and the intermediaries are aligned in the long term. Thus, the fees can not exceed 12% of the payment during the first three years after the payment and then, from the fourth year, a ceiling of 3% annually. This decree is retroactive since these ceilings apply to direct investments realized from January 1, 2018 and subscriptions made in FIP or FCPI that have been approved by the AMF from January 1, 2018.

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