Circular economy
The anti-waste law
The law that was promulgated on the 1st January 2022 gives priority to donations to charities involved in the fight against precarity over recycling or the transformation of products.
Discover what is going to change in 2022.
Circular economy
Anti-waste law
The law that was promulgated on the 1st January 2022 gives priority to donations to charities involved in the fight against precarity over recycling or the transformation of products.
Discover what is going to change in 2022.
Circular economy
The anti-waste law
The law that was promulgated on the 1st January 2022 gives priority to donations to charities involved in the fight against precarity over recycling or the transformation of products.
Discover what is going to change in 2022.
The anti-waste law for a circular economy
As a matter of principal, the destruction, incineration, and disposal of unsold non-food goods such as clothes, shoes, hygiene products, books or electrical appliances is forbidden.
Since the 1st January 2022, these products now have to be donated or recycled.
The reuse of products is now a priority
The law regarding the fight against waste and to promote circular economy thus wishes to accentuate the change of our production and consumption models to reduce waste and preserve our natural resources, biodiversity, and the climate. It is in line with the commitments of the environmental charter of 2004.
Traceability as an obligation
To abide by the law promulgated on the 1st January 2022, you now have to justify the destination of your overstocks and unsold products by providing the administration with all the elements regarding their traceability (reselling contracts, exportation documents, etc.).
Destock your surpluses, reduce your depot and warehouse costs and benefit from a tax credit. It’s all possible!
Add value to your overstocks
In-kind donations to a charity can be an ideal solution to add value to your overstocks and limit your depot and warehouse costs.
To have a more objective vision of the risks and opportunities of such an approach, it is necessary to consider all the financial parameters such as the gross value of your overstocks, the provisions that have already been counted and the ones to come, the potential costs for reconditioning, and the costs for the transport to the charity if the latter does not cover for them.
It is to be noted that thanks to the reversal of provision, the donations of already provisioned stocks enable to compensate for all, or a part of, the cost linked to stocks coming out.
You need help:
Add value to your overstocks
In-kind donations to a charity can be an ideal solution to add value to your overstocks and limit your depot and warehouse costs.
To have a more objective vision of the risks and opportunities of such an approach, it is necessary to consider all the financial parameters such as the gross value of your overstocks, the provisions that have already been counted and the ones to come, the potential costs for reconditioning, and the costs for the transport to the charity if the latter does not cover for them.
It is to be noted that thanks to the reversal of provision, the donations of already provisioned stocks enable to compensate for all, or a part of, the cost linked to stocks coming out.
You need help:
Up to 60 % of tax credit
A company that donates part of its products can benefit from a 60 % tax credit on the value of the donations up to 2 million euros, and 40 % beyond that threshold. The maximum value of the tax credit is capped at 10 000 euros or 0,5 % of the turnover (not including the business tax). In return, the value of the donation is reintegrated in the calculation of the fiscal result.
Start by calculating the maximum amount of tax credit you can be eligible to by calculating the forecast amount of 0,5 % of your turnover before tax. Careful: this is a French fiscal measure: if your accounts are settled in US-GAAP for instance, you will need to establish a simulation of the turnover based on different fiscal terms.
You need help:
Up to 60 % of tax credit
A company that donates part of its products can benefit from a 60 % tax credit on the value of the donations up to 2 million euros, and 40 % beyond that threshold. The maximum value of the tax credit is capped at 10 000 euros or 0,5 % of the turnover (not including the business tax). In return, the value of the donation is reintegrated in the calculation of the fiscal result.
Start by calculating the maximum amount of tax credit you can be eligible to by calculating the forecast amount of 0,5 % of your turnover before tax. Careful: this is a French fiscal measure: if your accounts are settled in US-GAAP for instance, you will need to establish a simulation of the turnover based on different fiscal terms.
You need help:
Up to 60 % of tax credit
A company that donates part of its products can benefit from a 60 % tax credit on the value of the donations up to 2 million euros, and 40 % beyond that threshold. The maximum value of the tax credit is capped at 10 000 euros or 0,5 % of the turnover (not including the business tax). In return, the value of the donation is reintegrated in the calculation of the fiscal result.
Start by calculating the maximum amount of tax credit you can be eligible to by calculating the forecast amount of 0,5 % of your turnover before tax. Careful: this is a French fiscal measure: if your accounts are settled in US-GAAP for instance, you will need to establish a simulation of the turnover based on different fiscal terms.
You need help:
