Finance Law 2021 and furnished rentals
Furnished rental and social contributions
The law on the financing of social security provides that, from1 January 2021, furnished tenants will be subject to social security contributions for self-employed persons in two cases:
- In the case of so-called professional furnished rental in the tax sense. To do so, it must meet the following two conditions: the annual income must be greater than €23,000 and greater than the other professional income of the tax household (i.e. salaries, pensions, BIC, BA, BNC1 and income of managers and partners mentioned in article 62 of the CGI).
- In the case of short term furnished rentals (daily, weekly or monthly stays without customers taking up residence) and where the annual revenue generated exceeds €23,000.
Temporary adjustment of the tax regime applicable to free asset revaluation transactions
The Finance Act provides that in the case of free revaluation of tangible and financial fixed assets, companies are not immediately taxable on the revaluation difference.
Thus:
- for non-depreciable fixed assets, a regime of deferred taxation of revaluation differences applies until the subsequent disposal of these assets;
- for depreciable fixed assets, the taxation of revaluation differences is spread over a period of 15 years (for depreciable buildings, plantations, fixtures and fittings) or 5 years (for other fixed assets).
