1: Definition of farm profits

Articles in this section · 1

63

Article 63

French General Tax CodeIn force
Ask for lawyer reviewed or certified translation

Updated 8 Nov 2023

For the purposes of income tax, profits from farming are deemed to be the income that the farming of rural property provides either to farmers, sharecroppers or to the farming owners themselves.

These profits include in particular those from forestry production, even if the owners limit themselves to selling standing timber cuts.

They also include the proceeds from the exploitation of mushroom beds in underground galleries and those from beekeeping, poultry farming, fish farming, oyster farming and mussel farming, as well as profits made by breeders of new plant varieties within the meaning of (articles L623-1 to L623-35 of the Intellectual Property Code).

Also considered as profits from the agricultural holding is income that derives from the preparation and training activities of domestic equidae, with a view to their exploitation in activities other than entertainment.

Income from the sale of dry or wet biomass, the majority of which is derived from farm products or by-products, is considered to be farm profits. The same applies to income from the production of energy from products or by-products mainly from the farm. The preponderance shall be assessed en masse with regard to each product marketed by the farmer.

Income derived from the provision of payment entitlements under the basic payment scheme provided for in Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes covered by the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009 shall be deemed to be profits from the agricultural holding.

Income from harness racing activities, teaching driving and working with dogs and sled transport or sled hire services when carried out by harnessed dog handlers who hold a state diploma in youth, popular education and sport with a specialisation in "canine harnessing" are also considered to be farm profits.

Income from actions carried out by the persons mentioned in the first seven paragraphs on the perimeter of their farm and which contribute to restoring or maintaining ecosystems from which society derives benefits is also considered as farm profits.

Mariela Petrova

Need help applying this article to your situation?

A registered French Lawyer explains what applies to your business — in English, fixed fee.

within 48h

Fixed Fee

Talk to a lawyer
Previous articleArticle 76 ANext articleArticle 78
Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

English · French · Russian

Ready When You Are

Talk To A Corporate
Lawyer In France.

A 20–30 minute call, in English, to scope the engagement. No obligation, no preliminary fee. You will leave the call with a clear view of what the work will cover and what it will cost.

Talk To A Corporate Lawyer+33 1 84 88 31 00
First EngagementFixed Fee

Talk to a French lawyer.

Reply within 24 hours.

Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

Continue Reading

Related corporate services in France

01 / Setup

Setting up a French company

Choose between SAS, SARL, SA or SCI — and structure your first French entity around how you actually plan to operate.

Read More
02 / Operating

French commercial contracts

Distribution, agency, supply, services and IP licences — drafted around the protections French law actually gives.

Read More
03 / Disputes

Business disputes & litigation

Shareholder conflicts, commercial breaches and pre-litigation strategy — handled by the same team that knows the file.

Read More