(Article 25 of the 2015 Amending Finance Act)
The 2015 Amending Finance Act aims to encourage the funding of projects by crowdfunding. As a reminder, the crowdfunding consists in the funding of projects by the public, via dedicated Internet platforms. Private investors can then participate to the financing of a project as lenders, donors or investors in shares.
Regarding individuals who participate in such financing as lenders, these loans may be granted with or without interest. When the loan is granted with interest, interest received by the individual are taxed at the progressive rate of income tax under the regime of fixed income investment products.
The new rule allows, when an individual grants a loan through a crowdfunding project, to deduce capital losses resulting from the non-repayment of a loan from interest earned consecutively to the granting of similar loans. This deduction can be made in the same year or in the following five years. However, there is no consequence on the calculation of social contributions, which are still based on the gross amount of interest.
This new measure, codified in FTC, Article 125-00, is applicable to loans made on or after January 1, 2016.