Taxation

Extension of the abatement scheme for retiring managers of SMEs

Publié le 11 mars 2025 - Directorate for Legal and Administrative Information (Prime Minister)

The 2025 budget extends until 31 December 2031 the fixed allowance for retiring managers of SMEs. Explanations.

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Image 1Crédits: Andrey Popov - stock.adobe.com

Since 2018, retiring managers of SMEs have received a fixed tax reduction of €500,000 on capital gains arising from the sale of securities.

The scheme now covers divestments and redemptions until 31 december 2031.

This measure aims to:

  • to facilitate transmission companies;
  • support SMEs;
  • supporting the transition retiring heads of company.

What conditions?

In order to benefit from this reduction, the following conditions must be met:

  • the transfer must relate to all the shares or rights held by the director whose shares or rights are transferred (or to more than 50 % of the voting rights);
  • the ceding officer must have exercised within the ceding business one of the following functions
    • manager;
    • partner on behalf of a business of persons;
    • chairman, managing director, chairman of the supervisory board or member of the executive board of a business with share capital.
  • the ceding officer must have held (directly or indirectly), on a continuous basis for the 5 years preceding the assignment, at least 25 % of the voting rights (or rights in profits) of the business whose securities or rights are being transferred;
  • the ceding officer must have ceased to hold any office in the business and assert his retirement rights within 2 years of or before the ceding;
  • in the case of an assignment to a company, the transferring manager shall not hold (directly or indirectly) voting rights (or rights in profits) in the company acquiring the business;
  • the business must be a small or medium-sized company (SME) within the meaning of Annex I to Regulation (EU) No 651/2014: employing company less than 250 employees, realizing either one annual turnover of less than EUR 50 million, either one balance sheet total less than EUR 43 million);
  • the business pursues a commercial, industrial, craft, liberal, agricultural or financial activity;
  • the business shall be submitted to thebusiness tax ;
  • the securities or rights transferred by the manager must have been held for at least one year at the date of the transfer.

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