Tax niches are derogations from tax rules which certain taxpayers may benefit, under conditions. The amount of these tax advantages is capped each year for the calculation of income tax. Who can benefit from it? What are the types of tax niches? How much is there in France? Answer. Video Capital: Tax niche © by Ah_fotobox – Andreas*H / Gettyimages – Tax advantages to reduce your income tax safeguard safeguarded Receive alerts Tax niche summary See more what is less than a tax niche? Definition a tax niche is a term used in taxation to designate the tax advantages that can benefit from certain taxpayers. It consists in reducing the amount of income tax subject to respecting certain conditions. Tax advantages can take several forms: tax reduction, tax credit or deduction of taxable income. There are two types of tax niches. Vertical Niches the vertical tax niche are tax systems specifically oriented towards a sector of activity (economic, social or environmental) or a specific category of expenses. They are mainly intended to encourage investment such as rental investment. Horizontal niche horizontal tax niche represent tax advantages which certain taxpayers benefit without any particular act to be performed. This is for example the exemption from interest produced by a savings book. Social niches are also social niches. These are measures to exempt, reduction or dismay, which apply to social contributions and contributions. This is the case, for example, of exemption measures relating to apprentices, home aid or even occasional agricultural workers. To read also: Real estate tax exemption: The devices to know what are the objectives of the tax loopholes? Tax niches are rules or tax systems which allow taxpayers to reduce their tax. As such, they constitute a shortfall for the State. However, these advantages are not without consideration. Indeed, each fiscal niche meets an objective for the government. Employment (tax credit for childcare and employment costs of an employee at home) here are the various tax advantages which make it possible to promote employment in France: encourage real estate investment (Pinel law, Malraux …) Some tax niches are aimed at encouraging real estate investments. For example: Pinel law (the system ended in December 2024); Forest challenge; Historical Monuments system; Malraux law … Support entrepreneurship and business development in the first investments, leading to a tax advantage, have the aim of supporting entrepreneurship and development of business activities: supporting energy savings finally, Reductable rate Applicable for certain energy renovations, energy -saving tax expenditure makes it possible to encourage sustainable development. Read also: Denormandie system: Conditions and amount how many tax loopholes are there in France? A total cost of more than 85 billion EUROSSELON The document annexed to the 2025 finance bill, there are around 474 tax loopholes in France. They represent for the State a total cost of 85.1 billion euros (7.7 billion euros are intended only for businesses). List of the most expensive niches in the state by the most expensive tax niches for the State are: the research tax credit; the tax credit for the employment of an employee at home; the 10 % reduction in terms of income tax on the amount of pensions; exemptions from the sums paid for participation, profit -sharing or subscription; ; the reduced rate of VAT to 10% applied to the work of improvement, transformation, development and maintenance. What is the ceiling of tax niches in 2025? An amount capped each year the amount of the tax advantages granted for tax niches is capped. Indeed, each year, for the calculation of income tax, the taxpayer cannot benefit from a reduction or a tax credit beyond a certain amount. 2025 taxation of the 2024 revenues for 2025 taxation of 2024 income, the total of tax advantages cannot provide a reduction in the amount of tax due greater than 10,000 euros. The cap is the same for all taxpayers, regardless of their family situation. It applies to the tax advantages granted in return for a service or an investment. On the other hand, it does not concern the following tax advantages: advantages linked to the personal situation. Advantages linked to the pursuit of an objective of general interest without counterpart. Meaning of the overall cap of the tax advantages for an investment in the overall amount of the overall cap is fixed at 18,000 euros for the tax reductions granted in terms of investments in overseas Pinel overseas or the subscriptions to the capital of Sofica). This cap applies by tax household. Receive our latest news each week, the flagship items to support your personal finances. (tagstotranslate) Tax niches
