Roche & Cie

Newsletter Heritage October 2016

03 Nov 2016

De Ruyter : New precisions

The governement confirmed the payment of default interest.

Persons affiliated to a social security scheme in a country within the territorial scope of Community regulations can not be subject in France to social taxes on their income from assets (ECJ, 26 February 2015, De Ruyter; EC, July 27, 2015, No. 334 551).

The government has confirmed the payment of default interest pursuant to Article L. 208 of the LPF, default interest for each month of delay from the day the administration is indebted to them. (RM Christophe Premat, JOAN October 25, 2016, issue No. 95150)

« De Ruyter » : Overseas territories residents are excluded from the social security contributions restitution process

As part of a question to the Government, he was asked whether residents of communities overseas governed by Article 74 of the Constitution of 4 October 1958 (French Polynesia, French Southern and Antarctic Lands, Wallis and Futuna , Saint Pierre and Miquelon) could make no complaint with the tax authorities given that these communities have their own competence in tax matters.

The Government has answered negatively. (RM Gilles Carrez, JOAN September 20, 2016, issue No. 91532)

For them, the affiliated persons outside the EU, EEA and Switzerland are not entitled to reimbursement of social contributions paid on their income from property.

Draft 2017 budget law: measures to follow

  • 20% reduction of the income tax on the middle-class incomes.

This measure concerns taxpayers with a tax income of the reference below 18,500 euros for a single or € 37,000 for a couple.

  • Commitment to lower corporate tax rates to 28% in 2020
  • Extension of outsourced diet 5 to 8 years.

Employees returning from abroad for employment in a company established in France or those recruited directly abroad by a company based in France would be tax-free for their outsourcing bonus until 31 December the 8th year (and not until 31 December of the 5th year)

The companies concerned would also be exempt from the payroll tax.

  • Removing the deduction of the total income of major repairs borne by the bare owner.
  • Capping the wealth tax

An anti-abuse clause would be created to redress unfair when use of holding companies subject to corporation tax to underestimate revenues and allow the bank lending to ensure the lifestyle. The lack of direct income to obtain a wealth tax cap

– Withheld at source of Income tax from 2018

Short term furnished rentals : More obligations and more taxes ?

A binding e-filing system
For housing in the cities of over 200,000 inhabitants, and some other cities, prior authorization was needed to rent a dwelling other than their primary residence. We had to declare it as a “guest apartment” at the town hall of his town. Then he had to file a request for prior authorization to use change to be able to rent for short periods to tourists.
The 2016-1321 Law of 7 October 2016 provides that the obligation to make a prior request for authorization also applies when the rental is on the main residence.
It provides that these approaches – declaration or request prior authorization – can be made online, through tele-reporting service that will provide a receipt which shall include a declaration number.
This number must appear on all rental ad. So it will not be possible to rent without having to perform this statement or sublease property without the consent of its owner. A decree will specify the terms of this e-filing.
Intermediaries, real estate agent or an Internet platform like Air BNB, must submit a sworn statement certifying that the landlord has fulfilled his obligations, mentioning if the property is the principal residence and declaration number. They will also check if it is his main residence, it is not rented over one hundred and twenty days a year.
Short term rental companies subject to the RSI?


The Social Security Financing Act for 2017, currently under discussion in Parliament, provides that individuals who rent housing regularly for short periods will join the social system independent (RSI) if that they earn more than 23,000 euros per year from their rental business.
We will return to this measure when it is finally adopted.