Finance Law 2023: Main new provisions for retirement savings

Vidal assurance supports its customers to better manage the changes following the new provisions of the Finance Act 2023 relating to retirement savings contracts.
Coming into force on January 1, 2023, the French Finance Act has introduced a number of incentives for individual and group retirement savings. These improvements to the method of taxing redemptions from Epargne Retraite contracts are designed to encourage the gradual preparation of retirement plans for both employees and the self-employed.

The most important new features are listed below:

1. Conditions for qualifying for tax benefits :

• Age requirement lowered from 50 to 45
• Contract duration condition maintained at 8 years

2. Partial or total surrender meeting the two above conditions (45 years and 8 years)

the Saver benefits from the following allowance:

• Deduction of 70% instead of 40% for redemption amounts less than or equal to 168,000 dhs
• 40% allowance for amounts over 168,000 dhs
• After deduction, the capital will be spread over 4 years before being subject to the income tax scale.

3. Partial or total surrender not meeting one and/or both of the above conditions (45 years and 8 years) :

• 15% non-liberating withholding tax instead of the current income tax scale

It should be noted that the Saver will continue to benefit from the advantages associated with the deductibility of contributions up to :

4. 50% of annual net taxable salary (salaried income)
5. 10% of total taxable income for non-wage income

For further information, please contact Mr Soufiane Benabdellah Sales Director
by e-mail s.benadllah@vidalassurances.ma
or by telephone on +212 6 60 12 63 08