French General Tax Code
In force1. Notwithstanding the provisions of Article 31, where the amount of gross annual income defined in articles 29 and 30 does not exceed €15,000, the corresponding taxable income is set at a sum equal to the amount of this gross income less a 30% allowance.
In the event that the taxpayer holds units in real estate investment funds referred to in article 239 nonies or units in companies, other than those referred to in article 1655 ter, which let bare property and whose income is taxed under the conditions set out in article 8, the limit of €15,000 is assessed by taking into account the amount of gross annual income defined in articles 29 and 30 in proportion to his rights in the accounting profits of these companies or funds. Taxable income is determined taking into account this proportion.
2. The provisions of 1 apply to all property income received by the tax household. The taxpayers concerned shall enter the amount of gross annual income directly on the return provided for in Article 170.
The provisions of 1 do not apply when the taxpayer or one of the members of the tax household owns one or more properties belonging to the following categories:
a) Historic monuments and the like or bare-ownership properties, leased and referred to in 3° of I of article 156 ;
b) (Repealed) ;
c) Dwellings in respect of which the benefit of one of the deductions provided for in j and k of 1° of I of Article 31 or one of the deductions for depreciation provided for in f, g and h of 1° of I of Article 31 is claimed ;
d) Units in companies, other than those referred to in article 1655 ter, which let bare property and whose income is taxed under the conditions laid down in article 8 when the holder is not the owner of a property let bare;
e) Units in companies, other than those referred to in article 1655 ter, and units in property investment funds referred to in article 239 nonies, which rent out a property referred to in a and c or which are subject to the depreciation deduction provided for in article 31 bis and whose income is taxed under the conditions provided for in article 8 ;
f) Dwellings in respect of which the benefit of the deduction provided for in m or o of 1° of I of article 31 is claimed;
g) Units in property investment funds mentioned in article 239 nonies when their holder is not the owner of a property given as a bare tenancy;
h) Dwellings in respect of which the benefit of the tax reduction provided for in article 199 tricies.
3. The year in which the threshold provided for in 1 is exceeded or the year in respect of which one of the exclusions mentioned in 2 is applicable, the net property income is determined under the conditions provided for in articles 28 and 31;
4. Taxpayers who wish to waive the benefit of the provisions of 1 may opt to have their net property income determined under the conditions provided for in articles 28 and 31.
The option is exercised for a period of three years within the deadline for filing the return mentioned in article 170 of the first year in respect of which it applies. Irrevocable during this period, it is valid for as long as the taxpayer remains continuously within the scope of application of 1.
