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Covid-19: a tax credit to reduce company rents

2020-10-28T19:18:44.875Z


Landlords of commercial leases who provide rent reductions to their tenant for at least three months will benefit from a


The government ruled on Wednesday, October 28.

To help businesses closed because of the Covid-19 health crisis, the State will cover part of the rents through a tax credit intended for donors.

The device, which is unveiled by the Parisian - Today in France, should concern a large part of the very small and medium-sized businesses that are highly affected economically.

And who have been asking for a boost for weeks on fixed charges such as the rent of commercial leases.

“All companies between zero and 250 employees in sectors S1 and S1 bis

(Editor's note: administratively closed or part of“ disaster ”sectors such as hotels and restaurants or culture, for example)

are affected by this new measure, explains. one at the Ministry of the Economy.

Landlords who agree to a reduction in rent for at least three months, be it 20%, 50% or 100%, will be able to benefit from a tax credit.

"

How much will this tax boost supposed to motivate donors?

"It will be about a third of the amount of the reduction granted", we continue.

For example, if the lessor lowers a rent of 1,000 euros by 20% for three months (i.e. 200 euros in monthly reduction), he will obtain a tax credit of around 66 euros.

The exact rate, as well as the details of the device, will be announced Thursday by Bruno Le Maire, the Minister of the Economy.

Initially, only restaurateurs were concerned

In recent weeks, the Minister in charge of VSEs and SMEs, Alain Griset, had several times brought together representatives of the main landlords and land companies to try to find a solution.

The track of the tax credit - initially intended only for donors to restaurateurs - was finally retained, but for all companies that would be hit by a new confinement.

Because while Emmanuel Macron began to announce new restrictive measures on Wednesday, companies that will have to lower the curtain will be taken by the throat, with a total loss of income and debts to honor.

"Today, to avoid cascading bankruptcies, the State must bear the fixed costs of companies which are too indebted to pay them, such as rents", estimates the economist of the French Observatory of Economic Conjunctures (OFCE) Mathieu Plane.

Source: leparis

All business articles on 2020-10-28

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