Maître Restaurateur Solier

“Service à la Personne” tax credit

On 18 July 2011, SOLAG became a member of a business association with the SERVICE À LA PERSONNE tax status. This means that you can benefit from a 50% tax credit on the price of labour after tax, together with a reduced VAT rate – 10% according to the 2017 rate.

Definition :
Any individual incurring expenses for personal help in the home is entitled to an income tax credit equal to 50% of the amount actually charged, and a reduced VAT rate of 10%.*
*Applicable to expenditure with an upper limit of €12,000 per year and per tax household, or €6,000 of tax credit.

credit-impot-loi-duflot

Tax Credit : A tax credit is an amount deducted from the gross amount of payable tax. The tax credit takes the form of a refund if it is greater than the gross amount of payable tax.

Who can benefit :
Members of the workforce  (employees, unemployed) and retired people

Eligibility conditions :
Natural person resident in France for fiscal purposes and owner (main or secondary residence) or tenant of the property.

The facts :
This law relates to labour, carried out through:
The employment of a declared employee or the engagement of an approved company or the engagement of a business association (approved association).

EXAMPLES :
On an invoice of €1,000, the labour (€900) and supplies for the work (€100) are treated separately. The tax credit or reduction will thus be equal to 50% of €900, or €450.

  • Example 1 : Working or not, you are liable for income tax of €1500; the €450 will be deducted from your tax to be paid: €1,500-€450 = €1050
  • Example 2 : Working or not, you are liable for income tax of €300. You will receive a refund of €150: 300-450 = €150 paid to your account
  • Example 3 : Working or not, your income tax is €0.00. The sum of €450 will be refunded to your account
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