It is possible to reduce your taxes by using the tax credit. This tax exemption scheme takes into account the tax burden.
How can I reduce my taxes thanks to the tax credit?
Getting a credit is often one of our concerns, whether it’s for a lifetime project (buying a house) or for a smaller project (buying a higher-end car or a vacation at the end of the world, for example). To find out more concretely what you would repay based on your income and the amount you wish to borrow, the quickest way to get an idea is to run a simulation with our tools.
To apply for a tax credit, it is important to master the notion of tax burden. It is the totality of the taxes on the remuneration paid by the employer. Tax charges, these compulsory payments made directly or indirectly to the state include income tax, CFE, VAT. It is possible to reduce taxes by using the tax credit.
Steps to benefit from an innovation tax credit
The CDI or innovation tax credit is a tax measure dedicated to SMEs. This tax measure provides a 20% tax credit allocated to the expenses necessary for the design or production of prototypes or the pilot installation of an innovative product. In addition to Research and Development expenses, SMEs will be able to benefit from an innovation tax credit which represents an extension of the Research Tax Credit.
These tax exemption tools affect certain expenses relating to innovative projects of SME . A distinction must be made between the scope of the innovation expenditure eligible for the schemes. The fact is that a distinction will also have to be made between Research & Development projects and those granted to innovation projects. In order to apply for the innovation tax credit, one will have to be vigilant, as the borderline between R&D and innovation is delicate to determine.
What are the advantages of the tax credit?
Although the tax credit is similar to the tax reduction, this tax exemption system has an additional advantage. In the event that the amount of the tax burden exceeds the tax due, the tax authorities issue a cheque to the taxpayers. The tax credit can be used for a number of purposes, such as childcare expenses, hiring employees at home, certain types of work, etc.
If the taxpayer benefits from zero tax, as part of a tax credit, the tax authorities give a cheque to the taxpayer if the amount of tax due is less than the amount of the tax benefit.
Filling out an income tax return to apply for a tax credit
The special feature of the tax credit is that it is the only assistance that can be received by taking the right steps immediately after the work is completed. The fact is that in order to be eligible for other aids such as the energy bonus, the aids granted by the Anah, you will have to apply for them before signing an estimate.