HOW TO OPTIMISE YOUR NEXT TAX RETURN
Before the end of 2024, there is still time to try to pay less on your next tax return. What can you do?
- Compensation of negative income pending: check whether you have any compensation pending application from previous years, and assess the suitability of making benefits by reducing taxation.
- Housing: if you obtain income from renting a property, it may be a good time to carry out the works you have planned, and thus reduce the taxable income.
It is also a good time to carry out work to improve the energy efficiency of your main residence or the one you have rented. In this case, the regulations require you to complete the work before the end of the year in order to apply the deductions provided for (between 20% and 60% depending on the type of work).
- Purchase of an electric vehicle: if you are thinking of buying a new electric car for private use, you should be aware that the current deduction (15% of the purchase value or amount paid on account, with a maximum base of €20,000) ends on 31st December. The installation of the recharging battery may also qualify for a deduction under the same conditions, but on a maximum basis of €4,000.
- Donations to non-profit organisations: this type of donation entails a deduction of 80% on the first €250, and 40% on the excess, and it is always advisable for the receiving organisations to issue the corresponding certificate.
- Capital gains and income from movable capital: if the maximum scale (from €300,000) applies to you, you should be aware that there is a project that would increase the current rate from 28% to 30% from 2025.
- Contributions to pension plans: taxpayers can contribute up to €1,500/year to a pension plan (which can be increased by €8,500/year if the contribution is made by their employer). It should not be forgotten that there is the possibility of contributing up to €1,000 per year to a partner’s pension plan (provided that the partner earns less than €8,000 per year).
- Deduction for investment in newly created companies: investments made before the end of the year in newly or recently created companies may deduct 50% of the amounts paid for the subscription of shares or holdings, on a maximum basis of €100,000. It should be noted that there are specific mandatory requirements.
