Roche & Cie

Business Property Tax: What’s New

06 Sep 2017

Owners of professional premises will soon receive their property tax notice for 2017. For the first time, this notice will incorporate the revision of the rental values.

As a reminder, the property tax is generally to be paid by 15th of October (except monthly payment), by tele-payment or by direct debit if its amount exceeds 2,000 €.

Note that if your company owns premises since January 1, 2017, and the latter have been sold during the year, the company remains liable for the tax and will have to pay it.

This year, the tax assessment incorporates for the first time the revision of the rental values. The latter are now based on a tariff system which will be updated each year in line with the evolution of the rents actually charged on the current rental market and not in comparison with standard premises rented on 1 January 1970.

The reform of commercial premises targets 3 kinds of them:

  • the premises used for a non-commercial professional activity,
  • industrial undertakings not covered by the accounting method,
  • and premises for professional use specially adapted for the exercise of a particular activity.

The integration of this revision can change your property tax upwards or downwards between 2016 and 2017. But how do you know if you are concerned?

The tax authorities have indicated that a reference will be made to your tax assessment in the box entitled “Your situation”. In addition, your contributions will be smoothed to spread over 10 years the effects of the revision.

Finally, consider comparing the amount of your tax base with last year’s amount.

Of course, changes in the amount of your property tax may also result from other factors, such as changes in community tax rates and taxes, or a change in your premises (annexation of a building, for example).

That is to say: the revision of the rental values ​​is also likely to affect your corporate property tax (CFE) as of this year, and then, starting in 2018, on your contribution to the value added of businesses (CVAE).

Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.