Income tax reference and tax exemptions

Income tax reference provides relief and tax exemptions. For example, to be totally exempt from housing tax, income tax reference should not exceed 9437 euros in 2006, plus 2520 euros per additional half-unit and 1260 euros per shift additional share in the case of shared custody children (other conditions being completed, including age and cohabitation).

Income tax reference depends on the number of shares of the tax household. The amount is on the tax notice for 2007.

Income tax reference contains the net taxable income plus capital appreciation potential.
The income tax is increased by reference the following products:

- Products of fixed income subject to withholding
- Reduction (40% for 2006) on the earnings distributed by the fraction exceeding the fixed allowance
- Wages and salaries received by employees seconded abroad
- Income of officials of international organizations
- Income exempt under a tax treaty
- Compensation of employees and officers seconded to France
- Compensation of elected officials subject to withholding
- Deductions and exemptions from the companies installed in new areas of land
- Exemptions for business profits of companies operating in urban zones and Corsica
- Products and gains from sale of shares of mutual funds (FCPR)
- Distributions of profits by venture capital companies (SCR) and capital gains from the sale of these companies
- Distributions of profits from sole proprietorships to investment risk (SUIR)
- Tax-deductible contributions, paid on a PERP or a like system
- Deducting the total income: acquisition of shares of joint ownership of commercial vessels or commercial or investment overseas
- Loss in the capital subscription of new companies

Income tax reference can therefore benefit from certain tax exemptions and reductions but above all without completing his statement that nothing is overlooked.