For the 2022 tax return, the online campaign began this Thursday, April 13, 2023. Although the tax form is largely pre-filled, it is important to check it carefully. Firstly to avoid mistakes that could cost you dearly, but also to ensure that you benefit from all the tax advantages to which you can claim, especially if you have a PER.
According to the Ministry of the Interior, the retirement savings plan (PER), created by the Pacte law in 2019, makes it possible to prepare for retirement by capitalizing during one’s working life. It is, concretely, to regularly pay sums into a savings plan. These sums will be released by the saver once he retires. The saver can however benefit from an “early release” in certain cases: if he gets married, if he concludes a PACS, if he is expecting the arrival of a child…
The PER also reduces income tax. Indeed, plan holders benefit from tax savings thanks to the deductibility of their payments. Amounts paid into a plan may be deducted from taxable income. And as taxable income goes down, taxes go down. In other words, the more you save on your PER, the greater your tax savings.
However, this tax saving is proportional to the saver’s marginal tax bracket. How high can your tax deduction be if you hold a PER?
The tax saving allowed by a PER is proportional to the saver’s marginal tax bracket. If you are taxed at the marginal tax bracket of 30% and you pay 5,000 euros on your PER, your tax reduction will be 1,500 euros (i.e. 30% of 5,000 euros). The same calculation applies for the marginal slices of 11%, 30, 41%…
However, the tax benefit of the PER is capped. The amount of payments deductible from taxable income is capped by law.
– For employees: the limit is 10% of the net taxable income of the previous year, i.e. 32,909 euros maximum in 2023.
– For self-employed workers: the limit is 10% of the fraction of the taxable profit included in the limit of eight times the annual social security ceiling, i.e. 351,936 euros; or 15% of the fraction of the taxable profit between one and eight times the annual social security ceiling, i.e. 46,191 euros in 2023. A self-employed worker can therefore deduct a maximum of 81,384 euros in 2023.
However, there is a way to raise these limits. What is it?
The tax deduction ceilings for PERs can be raised. This is particularly the case thanks to the catch-up of unused ceilings from previous years. If you are not in this situation, another little-known advantage of the PER exists: the pooling of ceilings between spouses.
According to Le Figaro, all taxpayer couples subject to joint taxation (married or PACS couple) have the possibility of pooling the ceilings of each member of the couple holding a PER. So, if your spouse has not made a payment on his PER, you can use his limit to contribute more to your plan while deducting it from your taxable income. To do this, simply tick the 6QR box on income tax return no. 2042.
