Key Benefits:
Publics concerned: natural persons, civil real estate investment companies (CIP), certain companies of individuals not subject to tax on companies such as civil property management companies.
Purpose: provide for declarative obligations relating to the reduction of income tax, known as "Duflot", provided for in thearticle 199 Novovicies of the General Tax Codegranted for rental investments made from January 1, 2013 to December 31, 2016 in the intermediate sector.
Entry into force: the text comes into force on the day after its publication.
Notice: theArticle 80 of Act No. 2012-1509 of 29 December 2012 Financial for 2013 introduces an income tax reduction for the intermediate rental investment.
This tax reduction applies to taxpayers domiciled in France who acquire, directly or through a corporation not subject to corporate tax, other than a civil real estate investment corporation (CIP), a new or assimilated housing, from January 1, 2013 to December 31, 2016, that they undertake to rent bare for use in the principal dwelling of the tenant for a period of nine years.
This tax advantage also applies to taxpayers who subscribe, from January 1, 2013 to December 31, 2016, shares of SCPI that make these same investments.
The Order sets out the declarative tax obligations of taxpayers wishing to benefit from the tax reduction.
References: this decree is taken for the application of theArticle 80 of Act No. 2012-1509 of 29 December 2012 Finance for 2013. Appendix III to the General Tax Code as amended by this Order may be consulted, in its drafting, on the Légifrance website (http://www.legifrance.gouv.fr).
The Prime Minister,
On the report of the Minister of Economy and Finance,
Vu le General Tax Codeincluding article 199 Novovicies and annex III to this code;
Vu le Public Health Codeincluding articles L. 1334-5 and L. 1334-13;
Vu le urban planning codeincluding article R.* 424-16,
Decrete:
Appendix III to the General Tax Code is amended as follows:
1° Article 2 quindecies B is amended as follows:
(a) In I, the words: General Tax Code or c of 2 of the I of Article 199 septvicies of the same code" are replaced by the words: ", c of 2 of the I of Article 199 septvicies or 3 of the B of the I of Article 199 Novovicies of the General Tax Code » ;
(b) In II, the words: General Tax Code or at the c of 2 of the I of Article 199 septvicies of the same code" are replaced by the words: ", at c of 2 of the I of Article 199 septvicies or at 3 of the B of the I of Article 199 Novovicies of the General Tax Code » ;
2° In the first paragraph of section 2 quindecies C, the words: "of the tax reduction under section 199 septvicies of the same applicable code" are replaced by the words: "tax reductions under sections 199 septvicies or 199 Novovicies of the same applicable code";
3° After the article 46 AZA decies, are inserted articles 46 AZA undecies to 46 AZA quaterdecies as follows:
"Art. 46 AZA undecies.-I. ― For application of thearticle 199 Novovicies of the General Tax Code, the taxpayer appended to the taxpayer's return of the year's income, as the case may be, to the completion of the building or work, or to the taxpayer's acquisition if it is later:
« 1° An annex note, prepared in accordance with the model established by the Administration, which includes the following:
“(a) His identity and address;
“(b) The address of the dwelling concerned, its date of acquisition or completion, the date of its first lease and the surface to be taken into account for the appraisal of the rent ceiling as defined, as the case may be, in articles 2 terdecies D or 2 terdecies F;
"(c) The amount of monthly rent, charges not included, as a result of the lease;
"(d) The commitment to rent the unfurnished dwelling for the primary purpose of the tenant, for a period of at least nine years, to a person other than a member of his tax home, one of his or her ascendants or descendants. This commitment also provides that the rent does not exceed the ceilings provided, as the case may be, for articles 2 terdecies D or 2 terdecies F;
“e) Methods for calculating the tax reduction;
« 2° A copy of the lease;
« 3° A copy of the notice of taxation or non-taxation of the tenant(s) established for the last year prior to the signature of the lease agreement;
« 4° The following documents, depending on the nature of the investment:
“(a) For housing acquired in the future state of completion, a copy of the project opening statement mentioned at thearticle R. * 424-16 of the urban planning code as well as a copy of the declaration of completion of the work accompanied by a document attesting to its reception in town hall;
“(b) For dwellings that the taxpayer constructs, a copy of the filing of the construction permit application, a document attesting to the date of obtaining the building permit and a copy of the completion declaration of the work accompanied by a document attesting to its receipt in Town Hall;
"(c) For dwellings that are the subject of work mentioned in 2° of the B of the I of Article 199 Novovicies of the General Tax Codea copy of the declaration of completion of the work accompanied by a document attesting to its reception in town hall;
"(d) For dwellings that the taxpayer acquires in order to rehabilitate them, a copy of the declaration of completion of the work accompanied by a document attesting to its receipt in Town Hall, the statements and certificates provided for in 1° and 2° of section 2 quindecies C and, where appropriate, those provided for in the articles L. 1334-5 and L. 1334-13 the public health code provided by the seller during the promise of sale or annexed to the authentic act of sale of housing;
“e) For dwellings that the taxpayer acquires rehabilitation, the documents referred to in d with the exception of the copy of the completion declaration;
“(f) For premises that the taxpayer transforms into housing, a copy of the declaration of completion of the work accompanied by a document attesting to its reception in Town Hall and a note specifying the nature of the previous assignment of the premises.
“II. ― Where the accommodation is not leased at the time of filing the return of the income of the year of completion of the building or of the work, or of its acquisition if it is later, the documents referred to in 2° and 3° of the I are attached to the return of the income of the year in which the lease is signed.
"In the event of a tenant change during the lease period, the taxpayer shall attach to the taxpayer's return of the year's income in which the change occurred a copy of the new lease and a copy of the notice of taxation or non-taxation of the tenant(s) entering the premises established for the last year prior to that of the signature of the lease contract.
"Art. 46 AZA duodecies.-I. ― For the application of the second paragraph of D of I and of first paragraph of the III of section 199 novelties of the General Tax Code :
« 1° The condition of rent is assessed taking into account the amount of rent paid to the lessor by the tenant agency and the rent paid to that agency by the sub-locatary.
"It is not, however, taken into account the fee paid by the sub-locatary, in addition to rent and rental charges, to an independent agency of the tenant organization and representative of the management, insurance, caretaker, amortization of collective premises, housing equipment and, where applicable, furniture. This provision applies to the condition that the accommodation is located in a residence with collective services and consisting of a homogeneous set of ten units for primary use and that the annual amount of the royalty does not exceed the annual amount of rent paid by the sub-locatary;
« 2° The condition of resources is assessed taking into account the resources of the sub-locatary;
« 3° Taxpayers attach to their return income from the completion year of the building or work, or the acquisition of the building if it is later, the following documents:
“(a) The annexed note provided for in 1° of Article 46 AZA undecies and, where applicable, the documents mentioned in 4° of the same I;
“(b) A copy of the lease with the tenant organization;
"(c) A copy of the sub-location contract showing the amount of the fee paid by the sub-locatary;
"(d) A copy of the income tax notice of the sub-locatary established under the last year prior to the signature of the sub-location contract.
“II. ― Where the lease or sub-location contract is not signed at the time of the filing of the income return for the completion year of the building or work, or the acquisition of the building if it is later, the documents referred to in the 3° I b to d are attached to the return of the revenues of the year in which the lease or sub-location contract is signed.
"In the event of a change of tenant or sub-locatary during the period covered by the rental undertaking, the taxpayer shall attach to its income tax return for the year in which the change occurred:
“(a) A copy of the new lease with the tenant organization;
“(b) A copy of the new sub-location contract showing the amount of the fee paid by the sub-locatary;
"(c) A copy of the notice of taxation or non-taxation of the sub-locatary entering the premises established under the penultimate year prior to the signature of the sub-location contract.
"Art. 46 AZA terdecies.-I. ― 1. When the building is owned by a corporation other than a civil real estate investment corporation, the obligations set out in sections 46 AZA undecies and 46 AZA duodecies are the responsibility of that corporation. The documents to be produced, which include the company's commitment to rent the building for a period of nine years to persons other than the partners, a member of their tax shelter or one of their ascendants or descendants, are attached to its statement of result of the year, as the case may be, of the completion of the building or of the work, or of the acquisition of the building if it is later.
“2. The company shall forward, no later than the second business day following May 1 of each year, to each of its associates, a duplicate document in accordance with the model established by the administration and containing, for the previous year, the following information:
« 1° The identity and address of the partner;
« 2° The number and number of shares held as of January 1 and December 31 and, where applicable, the shares entered, acquired and transmitted during the year and the date of such transactions;
« 3° The share of the income of the company's buildings corresponding to the rights of the partner;
« 4° The address of the building(s) eligible for tax reduction;
« 5° The certification that the rental and, where applicable, the sub-location meet the conditions of rent and planned resources, as the case may be, in articles 2 terdecies D or 2 terdecies F;
« 6° The share of the net property income corresponding to the rights of the partner determined under the conditions of common law;
« 7° The amount of the tax reduction corresponding to the partner's rights;
« 8° In the event of non-compliance by the corporation or a partner with its commitments, the share of the tax reduction that the partner must add to the income tax of the year in which the termination of the undertaking or the assignment of the dwelling or shares occurred.
"A copy of this document is attached by the company to its statement of outcome.
“II. ― 1. The commitment to the conservation of securities second paragraph of the A of Article 199 Novovicies of the General Tax Code is found at the time of the filing of the income return of the year for which the shares were subscribed or, if it is later, the year of the acquisition or completion of the building or work. The surviving spouse's commitment to the retention of titles is attached to the statement of income received by the surviving spouse for the year of his or her spouse's death for the period after that event.
“2. Shares held by partners who intend to benefit from the income tax reduction provided for in thearticle 199 Novovicies of the General Tax Code are registered, within 30 days of the filing date of the income return referred to in 1, on an account opened on behalf of the partner in the company's accounting or on a special register. Records relating to transactions that affected this account are retained until the end of the third year following the expiry of the undertaking referred to in 1.
“3. The partners attach to each of their income tax returns a copy of the document referred to in 2 of I.
"Art. 46 AZA quaterdecies.-I. ― 1. The commitment to the conservation of securities C of the VIII of Article 199 Novovicies of the General Tax Code is found at the filing of the year's tax return for which the shares were subscribed.
“2. Shares held by partners who intend to benefit from the income tax reduction provided for in thearticle 199 Novovicies of the General Tax Code are registered, within 30 days of the filing date of the income return referred to in 1, on an account opened on behalf of the partner in the company's accounting or on a special register. Records relating to transactions that affected this account are retained until the end of the third year following the expiry of the undertaking referred to in 1.
"The partners attach to each of their income tax returns a copy of the documents referred to in II and the terms and conditions for calculating the tax reduction.
“II. ― Civil Real Estate Investment Corporation referred to in A of the VIII of Article 199 Novovicies of the General Tax Code forward to its partners, no later than the second working day following May 1 of each year, a duplicate document, in accordance with the model established by the administration and comprising the following:
« 1° Identity and address of partners;
« 2° The number and numbers of the shares or shares subscribed for which the benefit of the tax reduction is requested as well as the amount of the corresponding subscribed capital;
« 3° The date of subscription of shares or shares and payment of funds;
« 4° The number and number of shares held as of January 1 and December 31 and, where applicable, the shares entered, acquired and transmitted during the year and the date of such transactions;
« 5° The attestation that 95% of the subscription, valued without taking into account the collection costs, for which the benefit of the tax reduction has been requested, is used exclusively to fund one or more investments for which the conditions of application provided for in thearticle 199 Novovicies of the General Tax Code are brought together;
« 6° The nature of the investments made by the shares or shares subscribed for which the benefit of the tax reduction has been requested, the address of the dwellings concerned, their date of acquisition or completion, the date of their first lease and the surface to be taken into account for the valuation of the rent ceiling as defined, as the case may be, by articles 2 terdecies D or 2 terdecies F;
« 7° The certificate that the product of the annual subscription is fully invested in the eighteen months following the close of the subscription;
« 8° The company's commitment to rent housing under the conditions set out inarticle 199 Novovicies of the General Tax Code. The company also indicates the amount of monthly rent, charges not included, as a result of the lease.
"A copy of this document as well as a copy of the notice of taxation or non-taxation of the tenant(s) established under the penultimate year prior to the signature of the lease contract is attached by the corporation to its return of result. »
The Minister of Economy and Finance and the Minister Delegate to the Minister of Economy and Finance, responsible for the budget, are responsible for the execution of this Order in Council, which will be published in the Official Journal of the French Republic.
Done on 23 December 2013.
Jean-Marc Ayrault
By the Prime Minister:
Minister of Economy and Finance,
Pierre Moscovici
Minister Delegate
to the Minister of Economy and Finance,
Budget Officer
Bernard Cazeneuve
