Under certain conditions, training expenses incurred by company directors can give rise to a tax credit. The amount of this tax advantage has been doubled by the Finance Act for 2022. Full details.
Conditions for claiming the tax credit for executive training
The tax credit for executive training expenses is available to the following companies:
- Companies subject to a real income tax regime (income tax or corporation tax), whatever their sector of activity or legal form.
- Non-tax-paying companies, whatever their sector of activity or legal form, except micro-businesses.
Thus, a sole trader, company manager, chairman of a board of directors or management board, director, managing director or member of a joint-stock company can benefit from this scheme for their training expenses.
What training courses are eligible?
The training courses eligible for this tax credit are those falling within the scope of continuing professional training. These include
- training initiatives relating to the company's economics;
- training courses leading to a skills assessment ;
- training initiatives relating to profit-sharing and employee savings schemes;
- support, information and advice for new entrepreneurs in the craft, commercial and liberal professions.
Double the amount of the tax credit for business training
The amount of the training tax credit for company directors is calculated by multiplying the number of hours spent in training (up to a limit of 40 hours per calendar year and per company) by the hourly rate of the SMIC.
For companies with fewer than 10 employees and annual sales of less than €2 million, the amount corresponds to the hourly SMIC rate multiplied by the number of hours spent on training, multiplied by two (only for training carried out from January 2022). For example, the manager of a company with fewer than 10 employees and annual sales of less than 2 million euros, who undertakes 10 hours of training in 2022, will be able to deduct a tax credit of 211.4 euros in 2023 (10 X 10.57 X 2).
The doubling of the amount of the tax credit for executive training is provided for in Article 19 of the 2022 Finance Act for training carried out from January 1, 2022.
What steps do I need to take?
For companies subject to corporation tax, the tax credit is deducted from the balance due for the year in which the training was taken.
For companies subject to income tax, the amount of the tax credit must be entered on the income tax return, using the form for declaring tax reductions and credits.
All procedures can be carried out by logging on to impots.gouv.fr from your professional space.