French General Tax Code
In forceThe income from ancillary activities falling within the category of industrial and commercial profits and that of non-commercial profits earned by a farmer subject to an actual taxation system may be taken into account in determining agricultural profits when, in respect of the three calendar years preceding the date on which the financial year begins, the annual average of ancillary commercial and non-commercial income for these three years does not exceed either 50% of the annual average of income from agricultural activity in respect of the said years, or €100,000.
Income from the activities mentioned in the first paragraph may not give rise to the deduction for precautionary savings provided for in article 73, nor benefit from the allowances provided for in article 73 B and the averaging scheme provided for in article 75-0 A. Losses arising from the exercise of the said activities may not be set off against the overall income referred to in I of Article 156.
By way of derogation from the provisions of the first paragraph, for the first three years of activity, the income from ancillary activities falling into the category of industrial and commercial profits and that of non-commercial profits earned by a farmer subject to an actual taxation system may be taken into account to determine agricultural profits when, for the calendar year preceding the date on which the financial year begins, ancillary commercial and non-commercial income does not exceed either 50% of agricultural income or €100,000. These amounts are calculated including reimbursements of expenses and taxes. This provision may not be applied concurrently in respect of the same financial year with the provisions of articles 50-0 et 102 ter.
Revenue generated by companies and groupings not subject to corporation tax of which the farmer is a member is not taken into account when assessing the thresholds mentioned in the first and third paragraphs (1).
