French General Tax Code
In forceI.-In the event of a change in the method for determining the rental value of an industrial building or land pursuant to articles 1499-00 A or 1500, the resulting change in rental value is subject to a reduction under the conditions set out in II of this article.
This reduction also applies to the variation in rental value resulting from a change of use within the meaning of article 1406 for premises mentioned in the first paragraph of this I newly allocated for professional use or vice versa.
II.-A.-The reduction provided for in I applies when the change in rental value exceeds 30% of the rental value calculated before taking into account the change provided for in the same I and, where applicable, after applying the penultimate paragraph of article 1467 and article 1518 A quinquies.
The reduction is equal to 85% of the amount of the change in rental value in the first year in which the change is taken into account, 70% in the second year, 55% in the third year, 40% in the fourth year, 25% in the fifth year and 10% in the sixth year.
When the operator changes during the rental period, the reduction is equal to 85% of the amount of the change in rental value. When the operator changes during the application of the reduction provided for in the first paragraph of this A, or when the building or land is concerned by the application of I of article 1406, the reduction in rental value ceases to apply for the tax assessments drawn up in respect of the year following the occurrence of one of these changes.
B.- - The reduction in rental value for the year following the application of I of article 1406. B.-Where a special roll is drawn up pursuant to Article 1508, the reduction in the change in rental value provided for in A of this II applies from the first year for which the rectified bases are taken into account in the general tax rolls.
III.-.For premises that benefit on 31 December 2020 from II of this article, the reduction is recalculated, for the remaining years, after application of 3 of I and III of article 1518 A quinquies and of article 1499 in the wording applicable to the taxes due in respect of 2021.
