400 EUR applicable to expenditure for the acquisition

Investments of individuals overseas in the housing sector and other sectors of activity

Investments in new assets in overseas territories and departments may (under certain restrictive conditions) entitled to a tax cut distributed over five years (or 10 years if the housing is assigned to the principal residence of the taxpayer and the operation performed from July 21, 2003).

This tax reduction is calculated on the basis of the cost or acquisition of housing or the subscription of the shares or price.

For investments carried out from July 21, 2003, it is equal to:

25 of the sums paid for the units assigned to the main residence of the taxpayer and for the work of rehabilitation;

40 of the sums paid for the investments made in the free rental sector incurred through December 31, 2010. This rate is reduced to 30 for investments engaged in 2011. The reduction is removed for subsequent investment;

50 of monies paid for the investments in the intermediate rental sector incurred through December 31, 2010. This rate is reduced to 45 for investments engaged in 2011 and 35 for those engaged in 2012. This tax reduction will be removed for subsequent investment;

50 of monies paid for subscriptions to the capital of eligible companies outside of the housing sector.

With regard to real estate investments from July 21, 2003, these rates are increased by 4 or 10 points as housing equipment uses renewable energy or that housing is located in a sensitive urban area.

For the investments made in 2009, the basis of the tax reduction is capped at EUR 2.194 duty-free per square metre regardless of the place of investment. This limit, which is relieved every year with the national index of the construction, consequentially to 2.247 euros in 2010.

Subscription to the capital of SMEs

A tax reduction is granted to taxpayers who perform up to 31 December 2012 a subscription in cash to the initial capital or a capital increase of a non-listed company subject to corporation tax and whose head office is located in a Member State of the Union European, Iceland or Norway.

Society, which must respond to the Community definition of SMEs, must exercise a commercial, industrial, artisanal, Liberal, agricultural activity or financial (with the exception of the management of its own heritage) or a company proxy investing in these operating companies. The granting of the tax reduction is subject to certain conditions including the turnover of the company and the conservation of the titles for a minimum period of five years.

Note free transmissions performed during commitment to conservation titles do not return to the tax reduction.

The tax reduction is equal to 25 of the payments made, in the annual limit of 20,000 euros for individuals and 40,000 euros for married taxpayers or collaborating. Beyond, the excess may be carried over to the next four years.

RECALL A tax reduction equal to 25 of the payments made from January 1, 2009, in the annual limit of 50,000 euros for individuals and 100,000 euros for married taxpayers or collaborating, is open to the taxpayers involved in the capital of some very small businesses (less than 50 employees and realizing a turnover or having a total of less than EUR 10 million budget) created for less than five yearsin seed, start-up or expansion phase. However, and contrary to the existing reduction, the new device does not report if the ceiling is exceeded.

Two devices of assistance may accumulate within the limit of an annual taking into account of expenditure capped at 50,000 (individuals) or 100,000 euros (pairs); a maximum tax reduction of 12.500 or 25,000 euros.

The benefit of these reductions is not be combined with that relating to the subscription to the capital of Sofica at a subscription to the capital of new societies or SCOP, the subscription to the capital of companies one-person of investment risk, investment overseas or with the device Eden (encouragement for the development of new businesses) or even with the benefit provided for EWB.

Furthermore, the shares or whose subscription has opened right in tax reduction may not be included in a PEA, PEE, PEI or Perco.

This tax benefit is subject to the new global Cap mechanism.

Interest on loans contracted for the resumption of an SME

Interest paid in 2009 at a rate of loans contracted for the resumption of a non-listed company subject to corporation tax and fulfilling certain conditions, are entitled to a tax reduction equal to 25 of the payments in the annual limit of 20,000 euros (single, widowed or divorced) or 40,000 euros (married taxpayers or collaborating).

RECALL the threshold of detention of rights to vote and the rights to the social benefits of the recovery company is fixed at 25. This threshold can also be achieved jointly by the taxpayer and by others involved in the recovery (family of the taxpayer and employees of the company if the taxpayer was himself employee at the time of the acquisition). These participants may also complete the condition relating to the exercise of leadership in society instead of the taxpayer. Conversely, more restrictive conditions are planned especially with regard to the size of the company or its activity.

In addition, the reduction is also subject to the conservation of the titles for five years.

This tax benefit is not subject to the new global Cap mechanism.

Subscription to the capital of SOFICAs

Cash payments made between January 1, 2006 and December 31, 2011, at the initial capital or the capital increases of companies for the financing of cinematographic or audiovisual works (SOFICAs) approved by the Ministry of Culture are entitled to a tax reduction equal to 40 of the amounts paid in the taxation year, retained in a double limit : 25 of the total net income and 18,000 euros, or an app.7.200 euros maximum tax reduction. The tax reduction rate is increased to 48 of the amount paid when the company receiving the subscription undertakes to carry out at least 10 of its investment directly in the capital of production companies before 31 December of the year following that of the subscription.

This tax benefit is subject to the new global Cap mechanism.

Mutual funds in innovation

The subscription until 31 December 2010 for shares of mutual funds in innovation (FCPI) opens right to a reduction of tax equal to 25 of the amounts in the annual limit of 12,000 euros for individuals or 24,000 euros for married couples or collaborating. The portfolio of the Fund must meet certain requirements. Subscriber must also undertake to keep the shares for at least five years and must not hold (directly or by person proxy) more than 10 of the shares of the Fund or more than 25 of the rights in the profits of companies whose titles appear on the assets of the Fund, or have held this percentage at a time any in the five years preceding the subscription of share of FCPI.

This tax benefit is subject to the new global Cap mechanism.

Investment Fund of proximity

The subscription of shares of these funds (to finance SMEs at the local level) opens, until December 31, 2010, to a reduction of tax equal to 25 of the payments made in 2009 retained in the annual limit of 12,000 euros (single, widowed or divorced) or 24,000 euros

(taxpayers married or bound by a pacs). The requirements are similar to those applicable to subscriptions of shares of FCPI.

Reminder: Payments until 31 December 2010 for subscription of shares of proximity investment fund located in Corsica open also entitled, under certain conditions, a reduction of tax equal to 50 of the amount of payments made in the annual limit of 12,000 euros for individuals or 24,000 euros for married couples or collaborating.

This reduction can be paid concurrently with the existing for FCPI share subscription.

This tax benefit is subject to the new global Cap mechanism.

Investments in the forestry sector

Taxpayers who conduct private wealth management some forest investments until 31 December 2013 (the device was originally to end on December 31, 2010) enjoy, subject to many conditions, a reduction of 25 tax, calculated on expenditure incurred in respect of forestry work, on the woodlands (or to be afforested) purchase price or the price of subscription of the shares of forestry groups, or calculated on 60 of the price of shares of companies in forest savings. The annual limit is 5.700 euros for a single person and 11.400 euros for a married couple or pacsé, for the costs of acquisition.

RECALL the ceiling of expenditure incurred in respect of forest work is now independent of the ceiling of 5.700 or 11.400 EUR, applicable to expenditure for the acquisition. This ceiling is 6.250 euros for a single person and 12.500 EUR for married persons or pacsées.

Reminder: Open right to a reduction of 25 tax, the amounts paid as of 1 January 2009 in respect of the remuneration of a management contract, retained in the annual limit of 2,000 (taxpayer single, widowed or divorced) or 4,000 euros (married taxpayers or collaborating).

These tax benefits are subject to the new global Cap mechanism.

Rental investments in some residences of tourism

Rental investment and some of the work carried out until 31 December 2012 (the device was originally to end on December 31, 2010) in classified and located in an area of rural revitalization, tourism residences from January 2001 in those experiencing structural difficulties (areas affected by "objective 2"), or as of 1 January 2004 area for development of new townsopen right, under certain conditions, reduction of tax rate and the ceiling of expenses depend on the nature and the date of the investment.

With regard to the acquisition of new housing or to rehabilitate, the tax reduction rate is fixed at:

25 of the amount of the acquisition or;

20 of the cost of housing plus the cost of rehabilitation work.

The tax reduction is granted the title of the year of the completion of the building or rehabilitation work and is spread over six years at most.

The amount of the investment is retained in the limit of 50,000 euros for a single person or 100,000 euros for couples subject to joint taxation.

NEW as of January 1, 2009, the taxpayer may, on application, be charged the balance of the tax reduction to six years.

This tax benefit is subject to the new global Cap mechanism.

Tax reduction for guardians of unemployed designers of enterprise

Taxpayers making voluntary assistance to unemployed or holders of social minima for the creation or resumption of a business Convention, enjoy, under certain conditions, a reduction of lump-sum tax of 1,000 euros (or 1,400 euros for assistance to a disabled person).

Reminder: As of the 2009 income tax, the tax reduction will be assigned half to the title of the year of the conclusion of the convention and the other half to the title of the year of its completion. Moreover, the tax reduction is extended under certain conditions, to the transferor of an enterprise which becomes the guardian of the buyer.

This tax benefit is not subject to the new global Cap mechanism.

Premiums of insurance for unpaid rent

A tax credit of 50 of the premium paid in the taxation year is granted to contract housing providers who subscribe starting July 28, 2005 a contract of insurance for risk of unpaid rent respecting certain conditions. This appropriation is not be combined with the deduction of the premiums in the amount of land revenue.

This tax benefit is subject to the new global Cap mechanism.

Device "Malraux law".

Reminder: For the operations of which the building permit application from January 1 2009, the imposition of the deficits the overall income provided by the device "Malraux" is replaced by a tax cut.

The tax reduction is equal to 30 of the amount of eligible expenditure for buildings located in the area of protection of the heritage architectural, urban and landscape (ZPPAUP), and 40 for buildings located on the safeguarded sector. Annual expenditures will be selected within the limit of 100,000 euros a year. In addition this CAP, the new regime to take account of expenditure on premises affected housing and no other use not having been originally earmarked for housing.

On the other hand, the expenses to be considered are now limited listed by text (repair, insurance...). Other expenses remain deductible land revenues in terms of common law. This is the case of loan interest.

Finally, tax reduction right opening expenditures are those borne by the taxpayer from the date of issuance of the permit to construct (or the expiry of the opposition to the prior reporting period) and December 31 of the third year.

This tax benefit is subject to the new global Cap mechanism.

Device "Robien Borloo, Scellier".

Reminder: The deductions provided for in the "Robien" and "Nine Borloo" devices are replaced by a tax reduction mechanism, applicable to investments from January 1 2009 (and which do not result from a promise to purchase or a reciprocal promise entered into before that date) and until 31 December 2012.

Only for the investments made in 2009, taxpayers will have the option to maintain under the former device.

The tax reduction is granted the title of the year of completion of the housing (or rehabilitation work) or its acquisition if it is later. It is equal to 25 of the cost of housing for the investments made in 2009 and 2010, 20 for those acquired or built in 2011 and 10 in 2012, selected within the limit of 300,000 euros. The amount is split over nine years. Non-attributable surplus of each fraction may be deferred on taxes for the next six years.

A new beginning in 2011 and for housing standard BBC (building low energy consumption), rates of the tax reduction Scellier will be set at 25 in 2011 and 20 in 2012.

Beyond the ninth year, a reduction of tax of 2 of the cost of housing is provided for in the regime "borloo" when at the end of the rental commitment of 9 years affecting the benefit of the initial reduction of 20 or 25, the rental terms and conditions are maintained. In respect of the same year, the taxpayer will not benefit from the tax reduction to the title of a single housing.

NEW effective 2010, the tax reduction will not apply to housing funded by a social rental loan (PLS).

This tax benefit is subject to effective taxation of income of the year 2009, the new mechanism of global cap, including, for 2009, for maintenance of the taxpayer under the old mechanism of deduction.