A tax credit is defined as primarily a tax benefit that individuals can receive if they meet a number of criteria. This credit often takes the form of a reduction in the amount of tax that you have to pay. It only concerns one small number of people and it would be interesting to know if one is entitled to it in order to be able to make serious savings. These credits can be given to both individuals and companies. This measure aims to support a sector of activity, to contribute to sustainable development or to help social welfare.
Who is entitled to a tax credit?
The tax credit offers the possibility of savings, which in a way amounts to earn money. Many people would like to take advantage of this, but it is only available to people who meet certain conditions, depending on the tax system of the country in question.
In France, the tax credit is applicable in particular to :
- Expenditure on work carried out in your homes. These works must be in line with sustainable development such as energy-saving work (CITE), thermal insulation, for example. This type of expenditure represents the majority of expenditure covered by the tax credit and is applicable to owners, tenants or free residents of the dwelling in question.
- Expenditure incurred for helping people in need.
- Expenditure under the development and research in companies.
- Expenditure on the development of films and video games.
- Interest on loans for the purchase of your principal residence and interest on student loans.
- Employment in sectors where recruitment is difficult
What is a tax credit?
If you meet the required criteria, you are therefore eligible for the tax credit. In practice, this credit is interpreted as either :
- By a direct deduction of the amount you have to pay to the tax authorities.
- By a cancellation of your tax, if the amount of tax is equal to the amount you had to pay (the amount of tax is reset to 0 euro).
- By a reimbursement of the beneficiary from the Direction Générale des Finances Publiques, which differentiates it from a simple tax reduction.
If the beneficiary is not taxablethe entirety of the amount of his tax credit will be reimbursed by the Treasury. However, you should be aware that if the amount in question is less than 8 euros, it will not be refunded.