Family tax credit: conditions, amount and procedures

The family tax credit concerns the expenses incurred by a company to facilitate the family life and professional life conciliation of its employees. It is thus opened for expenses of creation and operation of a crèche or a daycare-in-law engaged by a company. Explanations!

What is the Family Tax Credit (CIF)?

The Family Tax Credit has been set up to encourage companies to make expenses to offer their staff a Best family life and professional life conciliation. A company that initiates expenses with the aim of setting up a crèche or awarding aid to employees may benefit, under the year N, from the family tax credit.

Who can benefit from the family tax credit?

CIF beneficiary companies

The Family Tax Credit is open to many companies, regardless of their status or sector of activity. However, at least one employee is needed. Are eligible:

• Professional civil societies (SCP);
• Companies subject to income tax Under the normal real diet or simplified taxation or income tax according to the regime of the controlled declaration;
• Companies subject to corporate tax under the normal or simplified taxation of taxation;
• Public establishments and associations subject to corporate tax.

CIF excluded companies

Pursuant to article 244 quater F of the CGI, the CIF can be granted to all companies regardless of their legal structure. However, some are explicitly excluded of the device:

• Micro-entrepreneurs (auto-entrepreneurs), due to their flat-rate tax regime (micro-BIC or micro-BNC) which does not deduction of actual charges or benefit from CIF tax credits.
• Companies not imposed in France (foreign establishments without direct tax in France).
• Structures not subject to a real tax regime.

Employees who can benefit from the CIF

All employees of the companywithout distinction of status (type of employment contract, full or partial time), may benefit from the advantages financed by expenses giving the right to the CIF, provided that the aid is made available to them without financial or discrimination.

THE non -employed staff (business manager or social leaders) can also benefit from it, but the company must at least employ an employee and expenses benefit from all staff, according to the same award rules as for employees.

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What are the expenses eligible for the family tax credit?

Expenses related to the creation or operation of children’s reception structures

The expenses incurred by a company to create or finance a collective reception structure for the children of its employees give the right to the family tax credit (organizations referred to in the first paragraph of article L. 2324-1 of the CSP, public health code). It can be nurseries,, Flockeries, or children’s gardens.

In addition to the financing of structures, the maintenance and operating costs Serving to maintain the installations, provided that these expenses are exclusively supported by the company and that they are not rebuilt to employees.

Reservation of places in establishments for reception of young children (EAJE)

A company can benefit from the CIF when it decides to Reserve crèche squares For the reception of the children of its employees with existing structures (for the benefit of public or private organizations). These places are said to be “inter -company” when they are shared with other companies.

In this case, the amounts invoiced to the company for the reservation of places are considered as eligible expenses, provided that the company does not affect the cost to parents. Support must be disinterested from a tax point of view, that is to say in favor of employees.

Children’s assistance services grant

The CIF covers the subsidies paid to organizations for childcare services at home, provided that they are approved (personal services). This may include expenses incurred to provide employees with Previous universal employment-service checks (CESU), within the limit they are assigned to child care under the age of six.

In this case, the employer takes care of a party or all of the CESU cost, without financial consideration for the employee. The amount actually borne by the employer is then considered to be eligible for the tax credit.

Participation in partnerships or indirect aid

The CIF applies to indirect funding, when a company supports collective actions in favor of early childhood. This can take the form of a partnership with a local communityfinancial support for a crèche managing association, or membership of an inter -company reception network.

Non -eligible expenses

Some expenses are explicitly Excluded from the CIF fieldeven if they concern the family sphere:

• Expenses related to family leave (parental leave, paternity leave, etc.).
• The financial aid granted directly to employees, except in the context of the pre -funded CESUs.
• THE Advantages granted to company managers, unless they are also employees.
• Parental training or support expenses, unless they are childcare.

What is the amount of the family tax credit?

The amount of the tax credit is different depending on the nature of the expenses incurred by the company, after compulsory levies and other tax credits.

Calculation of the family tax credit for expenses linked to a crèche or a drop-in-law

Regarding the expenses incurred for the creation and the operation of a crèche or a daycare center and the payments made for the reception of children of employees within establishments managed by external organizations, the tax credit is equal to 50 % of the expenses incurred.

Financial aid paid by the company in order to finance personal services

Regarding the payments made by the company to finance personal services, the tax credit is equal to 25 % of expenses incurred. This reduced quota compared to the normal rate of 50 % applies in particular to individual aid allocated for childcare at home by approved providers.

Family tax credit ceiling

The total amount of the family tax credit is limited to 500,000 euros per calendar year,, for each company, all types of expenses combined. This ceiling applies regardless of the number of sites, establishments or employees concerned. In case of exceeding, the excess expenditure cannot be postponed to another year.

How to declare the family tax credit?

Companies subject to income tax: declaration

Companies subject to income tax must calculate the amount of the family tax credit using the Calculation assistance sheet n ° 2069-FA.

• The amount must be postponed to the result remote control, “other imputations” box.
• The form n ° 2069 -Ri, which lists all the tax reductions and credits of the financial year, must be annexed.
• Finally, the entrepreneur must postpone the amount of the tax credit on his additional declaration of income n ° 2042 C pro.

Companies subject to corporate tax: form

Companies subject to corporate tax must indicate the amount of the family tax credit in the “family tax credit” box on the remote control of the result and join theTax print n ° 2069-FA and form n ° 2069-RCA at the IS is n ° 2572 balance.

Family tax credit: what effect on the tax result?

The Family Tax Credit has no impact on determining the taxable tax result of the company. On the other hand, the expenses incurred to finance the services eligible for the CIF remain deductible from the tax resultunder the usual conditions provided for by the General Tax Code. The company therefore benefits both:

• of the deduction of the charge under the taxable result (note: social expenses made in the interest of the personnel are deductible charges of the tax result-BOI-BIC-CHG-40-40-60);
• and the corresponding tax credit, decreasing the tax due.

The CIF thus operates as a double incentive of the tax administration, strengthening the interest for companies to invest in support for parenting.

What are the other tax credits related to the family?

Childcare tax credit (individuals)

Individuals can benefit from a tax credit for childcare costs under the age of six, when they use an approved maternal assistant, a crèche, a daycare or a home care. The tax credit amounts to 50 % of expenses incurredwithin the limits of an annual ceiling of 3,500 euros per child.

Tax credit for the employment of an employee at home

Individuals employing an employee for tasks of daily life (cleaning, home care at home, tutoring, etc.) can benefit from a “home employment” tax credit. The rate is generally 50 % of the expenses supportedwithin the limits of an annual ceiling of 12,000 euros to 15,000 euros.