French General Tax Code
In force1. In the event of a marked disproportion between a taxpayer's lifestyle and his or her income, the income tax base is increased to a lump sum determined by applying the following scale to certain elements of this lifestyle, when this sum is greater than or equal to €50,447; this limit is increased each year in the same proportion as the upper limit of the first bracket of the income tax scale :
ELEMENTS OF LIVINGCOUNT | BASIS | 1. Cadastral rental value of the main residence, less that applicable to business premises | Five times the cadastral rental value. |
2. Cadastral rental value of second homes, less that applicable to business premises | Five times the cadastral rental value. |
3. Domestic servants, tutors, preceptresses, governesses : | |
- for the first person aged under 60 | 4,600 € |
- for each of the other persons | 5,700 € |
The base thus determined is reduced by half as regards persons employed mainly for the exercise of a profession. | |
The first domestic employee is disregarded. | |
The second domestic employee is disregarded where the number of persons aged 65 or infirm living in the same household is at least four. | |
4. Motor cars intended for the transport of people | The value of the new car with a 50% reduction after three years of use. |
However, the base thus determined is reduced by half as regards cars belonging to war pensioners benefiting from the status of major invalids, as well as blind people and major civil invalids holding the "mobility inclusion" card bearing the "invalidity" mention provided for in article L. 241-3 of the Code de l'action sociale et des familles. It is also reduced by half for cars that are assigned mainly to professional use. This reduction is limited to a single vehicle. | |
5. Motorbikes over 450 cm 3 | The value of the new motorbike with a 50% reduction after three years of use. |
6. Sailing yachts or pleasure boats with or without auxiliary motor of at least 3 tons international tonnage: | |
- for the first three tons | €1,140 |
- for each additional ton: | |
- from 4 to 10 barrels | 340 € | - from 10 to 25 barrels | 460 € | - over-over 25 tonnes | €910 |
This scale is quintupled for pleasure boats flying the flag of a country or territory that has not concluded an administrative assistance agreement with France to combat tax fraud and evasion. The number of tonnes to be taken into consideration is equal to the number of tonnes corresponding to the gross tonnage less, where applicable, a deduction for obsolescence equal to 25%, 50% or 75% depending on whether the yacht or pleasure boat was completed more than five years, more than fifteen years or more than twenty-five years ago. The tonnage thus obtained is rounded down, if necessary, to the next lower unit. | |
7. Pleasure boats with a fixed or outboard engine with a real power of at least 20 hp: | |
- for the first twenty horsepower | 910 € |
- per additional horsepower | 69 € |
However, power is only counted for 75%, 50% or 25%, as regards boats built more than five years, fifteen years and twenty-five years ago respectively. This scale is quintupled for pleasure boats flying the flag of a country or territory that has not signed an administrative assistance agreement with France to combat tax evasion and avoidance. | |
8. Touring aircraft: per horsepower of the actual power of each aircraft | €69 |
9. Racehorses aged at least two years within the meaning of the racing regulations: | - per thoroughbred horse | 4,600 € |
- per horse other than a thoroughbred and per trotter | 2,700 € |
10. Saddle horses: per horse aged at least two years from the second horse | 1,370 € |
11. Lease of hunting rights and shareholdings in hunting companies | Twice the amount of rents paid or shareholdings paid where it exceeds €4,600. | 12. Golf clubs: shareholdings in golf clubs and subscriptions paid with a view to using their facilities | Twice the amount of sums paid where this exceeds €4,600. |
The items used to determine the tax base are those available, during the year of taxation, to the members of the tax household designated in 1 and 3 of the article 6.
For items disposed of jointly by several people, the base is set in proportion to the rights of each of them.
The income referred to in this article is that which results from the taxpayer's declaration and, in the absence of a declaration, it is counted as zero.
2. (Repealed).
2 bis. The marked disproportion between a taxpayer's lifestyle and his income is established when the lump sum resulting from the application of the scale provided for in 1 exceeds by at least one third, for the year of taxation, the amount of the overall net income declared including income exempted or taxed at a proportional rate or released from tax by the application of a levy.
3. The taxpayer can provide proof that his income or the use of his capital or the loans he has taken out have enabled him to maintain his lifestyle.
