To enable non-profit organizations to create even more jobs and fully contribute to the country’s growth, a specific measure in favor of associations not subject to corporate tax (IS) has been adopted: a reduction in the amount of their payroll tax.
The government has indeed decided to increase the payroll tax (TS) exemption from 6,000 to 20,000 euros. This measure represents an effort of 314 million euros from the state budget. Associations will benefit from it starting January 1, 2014.
This measure, dedicated to associations not subject to IS, will have a very strong impact on small structures. To recall, only 13% of associations are subject to corporate tax (IS).
It materializes the government’s support for the main actors of the social and solidarity economy: 70% of associations will no longer pay this tax.
Additionally, a simplification of administrative procedures has been initiated: a reduction in the frequency of declarations related to payroll tax has been instituted by the decree of December 26, 2012. An association that paid less than 4,000 euros (instead of 1,000 euros) in TS the previous year will only be required to file an annual declaration.
An association that paid between 4,000 euros and 10,000 euros (instead of between 1,000 euros and 4,000 euros) in TS the previous year, will be required to file quarterly declarations. The monthly declaration only persists beyond these thresholds.
