French General Tax Code
In forceI.-Subject to articles 76 and 76 A, the taxable profit of farmers who are not subject to the tax system defined in article 69 is determined in application of the present article.
The taxable profit, before taking into account capital gains or losses from the disposal of assets allocated to the farm, is equal to the average revenue excluding tax for the tax year and the two previous years, less an allowance of 87%. This allowance cannot be less than €305. The income to be taken into account refers to the sums collected during the calendar year in connection with the farm, plus the value of products taken from the farm and allocated either to salaried staff or to the owner of the land in payment of the rent, excluding those received in respect of disposals of fixed assets, reimbursements of expenses incurred in the context of mutual agricultural assistance, compensatory allowances for natural handicaps, equipment subsidies and premiums and royalties originating in the right of ownership.
In the event of the creation of a business, the amount of revenue to be taken into account for the application of the second paragraph of this article is equal, for the year of creation, to the revenue for the said year and, for the following year, to the average of the revenue for the tax year and the previous year.
In respect of the year following the exit from an actual tax regime, the revenue referred to in the same second paragraph is reduced, before application of the allowance provided for in the said second paragraph, by the amount (excluding tax) of receivables shown on the balance sheet of the last financial year taxed under an actual tax regime.
The capital gains or losses referred to in the same second paragraph are determined and taxed under the conditions of the actual tax regime. The allowance referred to in the said second paragraph is deemed to take account of depreciation carried out using the straight-line method.
II.-(repealed).
III.-The taxpayers referred to in I of this article shall enter directly on the declaration provided for in article 170 the amount of revenue for the tax year, revenue for the two previous years and capital gains or losses realised or suffered during the year.
IV.-The taxpayers referred to in I of this article shall keep and, at the request of the tax department, present a document giving a daily breakdown of their professional income, together with invoices and any other supporting documents relating to this income.
V.-The option provided for in a of II of Article 69 is valid for one year and tacitly renewed each year for one year. Taxpayers may waive this option within the deadlines applicable to the filing of the tax return for the results of the period preceding that for which the waiver applies.
