In 2020, corporate philanthropy will have to participate in the savings effort, and the whole system will be put to the test. According to information from Europe 1, while today companies can deduct from their taxes 60% of the amount of their donations, this deduction rate will increase to 40% when the amount exceeds 2 million euros, even if this sum is distributed to several associations.
By this measure, the government targets the very large companies, those who do not hesitate to offer colossal donations, but which in return recover their image and a generous tax exemption. The idea is, for the executive, to be fiscally less generous to allow the state to collect more taxes.
The government wants to encourage local patronage
One sector will however be excluded from the scheme: food aid associations. Whatever the amount of donations, the tax deduction rate will remain at 60%. In parallel, Secretary of State for community life Gabriel Attal wants to encourage local patronage, such as the SME that donates to renovate the heritage of his city or finance the football club in the region. Today, an average company with less than 2 million turnover has the right to deduct up to 5,000 euros from its taxes. From next year, it will be 10,000 euros.