The regime governing property dealers...
22 SEPTEMBER 2016
The regime governing property dealers and the partial non-observance of the commitment to resell: still not too late to claim a refund or request an adjustment!
Pursuant to article 1115 of the French Tax Code (FTC), the acquisition of properties by a taxable person subject to VAT, made with a commitment to resell within five years, will be subject to registration fees at a rate of 0.715% instead of 5.80% (or 6.40% in the Ile-de-France region).
Should this commitment to resell not be met, the purchaser must pay the difference in fees, plus late-payment interest at a rate of 4.80% per annum (article 1840 G ter of the FTC).
The Lupa ruling: new tax uncertainty...
26 JULY 2016
The Lupa ruling: new tax uncertainty regarding sales of real estate companies!
The subject is a quite difficult one as it involves the application of the Quémener ruling1 to restructuring operations carried out after the acquisition of an SCI [société civile immobilière, real estate partnership] (or an SNC [société en nom collectif, partnership]) that is not subject to Corporate Income Tax (CIT) where there is a deferred capital gain on the real estate assets it owns.
Pierre Appremont joins Kramer Levin
17 JUNE 2016
Pierre Appremont & his team join Kramer Levin
VAT and compensation for early cancellation of a lease
14 JUNE 2016
VAT & compensation for early cancellation of a lease:
In our newsletter of 18 September 2015, we focused on the application of VAT to compensation paid in case of early cancellation of a lease.
Additional tax of 0.60% in Ile-de-France region
7 JUNE 2016
Scope of additional tax of 0.60% in Ile-de-France region: the French Tax Authorities (FTA) states that it will not apply where the purchaser gives an undertaking to resell!
By way of reminder, the amending Finance Law for 20151 introduced a new, additional tax on registration fees (droits d'enregistrement) or land registry tax (Taxe De Publicité Foncière – TPF) of 0.60%, to be collected by the Ile-de-France region.
This measure was codified in article 1599 sexies of the French Tax Code (FTC) and applies to transfers made on or after 1 January 2016.