Tax and retirement savings: ceiling, declaration, deduction…

The last straight line to check, correct and send your 2023 tax return on revenues for the year 2022 is approaching for certain departments. People with a retirement savings plan (or PER) must declare it and also benefit from a tax advantage in the form of a deduction. Here is the information you need to know and the boxes to fill in on your tax slip.

Since October 2019, new PERs have been available since October 1, 2019, such as the individual retirement savings plan (Perin), the collective company retirement savings plan (Pereco) and the compulsory retirement savings scheme (Pero).

How do I report retirement savings on my tax return?

As it is reminded on the tax portal, the contributions paid by each member of the tax household under the retirement savings plan popular (PERP), the new individual retirement savings plan (PER individual), the PREFON, COREM and CGOS pension plans and the company retirement savings plan (PERE) and the supplementary pension obligatory company give the right to a tax benefit in the form of a deduction overall gross income.

The contributions paid should be indicated in paragraph 6 “Deductible expenses > Retirement savings” of tax return no. 2042, more specifically in boxes 6NS and 6RS. Certain contributions paid for a self-employed professional activity are only deductible from income net categorical (Agricultural profits, industrial and commercial profits or non-commercial profits).

THE different products eligible are the PERP, the PERE, the individual PER or PERIN, the Pereco, the Pero. The other optional schemes are the PREFON scheme, the COREM mutual benefit pension supplement and the CGOS hospital supplement pension.

Taxable retirement savings: what ceiling?

For each member of the tax household, the deductibility ceiling from the overall income of the contributions or premiums paid on the PERP, on the individual PER, on the PREFON-type schemes as well as, on an optional basis, on a scheme known as “article 83” for year N is:

• set at 10% of the net amount of all earned income declared for year N-1 comprising a minimum (4,052 euros) and a maximum (32,419 euros) calculated on the basis of the annual amount of the social security ceiling
• reduced:

– contributions to supplementary pension plans made compulsory in the company for employees (“article 83” and PERE for its compulsory component, PERO and PERCO). These are the employer’s share, for its non-taxable amount, and the employee’s share, for its deductible amount from the salary;

– contributions to optional schemes for non-employees and managers covered by article 62 of the CGI (“Madelin” and “Madelin agricole” contracts), for their amount deductible from the professional result, not taking into account their fraction corresponding to 15 % of the share of taxable profit between one and eight times the annual amount of the social security ceiling;

– the employer’s contribution to the collective retirement savings plan (PERCO), the collective company retirement savings plan (Pereco) or the mandatory retirement savings plan (Pero) within the limit tax exempt amount on income (€6,582);

– rights registered on the CET, or, in the absence of CET, monetized days of leave, exempt (within the limit of 10 days) allocated by the employee to a PERCO, to a supplementary company pension plan ” article 83” or to a Pereco;

• and increased by the ceiling or the fraction of the deduction ceiling not used during the previous three years.

The ceilings available for contributions paid in N are calculated automatically by the tax authorities and appear, for information, on the income tax notice N-1.