Legal news

In France, the tax control of organisations of general interest has been recently largely reinforced

In order to benefit from the French tax reduction for sponsorship (up to 60% of the amount of the donation for legal entities and 66% for individuals, subject to certain taxable income limits), all donors, including henceforth legal entities, must be able to present tax receipts attesting to the reality of their donation at the request of the administration.

The legislator adopted, on 24 September 2021, the Law reinforcing the respect of the principles of the Republic, providing the tax administration with increased means for a reinforced control of non-lucrative organisations :

  • Organisations that issue tax receipts must now report the number of receipts issued annually and the total amount of donations and payments mentioned on these documents (however, there is no question of naming the individuals or companies receiving the tax receipts).
  • Non-cult associations and endowment funds which receive more than €153,000 in donations and which receive resources from abroad must keep separate records of these resources, in the form of a table annexed to their annual accounts, which must specify, for each State of the contributor, the date of the resource, in chronological order, the legal personality of the contributor, the nature of the resource, the method of payment, the amount or value of the resource.