In our previous news, we discussed the reform of the taxation of seasonal lettings in France. The Finance Act for 2024 significantly tightened the conditions for the application of the “micro » regime. However, uncertainty remained as to whether it would apply retroactively to income earned in 2023, as one article of the law seemed to suggest. In this context, the French tax authorities issued a tax instruction dated February 14, 2024, clarifying the application of the micro regime to the previous year’s income:
Extract from the BOI dated 14/02/2024 on the modification of Article 50-0 of the CGI:
“The provisions of this article are deemed to apply to income for the year 2023, even if they result in taxpayers switching from the micro-enterprise regime to a real tax regime as a result of the lower turnover threshold for the application of the micro-enterprise regime. This change will require the affected taxpayers to reconstruct their business accounts for 2023 a posteriori.
Taxpayers will therefore be able to apply the changes resulting from Article 45 of Law N° 2023-1322 of December 29th 2023, relating to financing for 2024 as of the taxation of income for 2023.
However, in order to limit the consequences of the retroactive application of this measure to transactions already carried out, taxpayers may continue to apply the provisions of Article 50-0 of the CGI, in the version prior to Law N°. 2023-1322 of December 29th 2023 on financing for 2024, to income from 2023. »
Furnished-rental operators who have exceeded the €15,000 turnover threshold for 2023 will therefore be able to continue to benefit from the micro-regime in its version prior to the 2024 finance law, if they so wish. They will not be obliged to declare their rental income under the actual regime as of January 1st 2023 (which implies the establishment of a commercial accounting system).
Want to know more? See our article : « Furnished rentals: what’s new in 2024? »
BOI news of 14/02/2024 : https://bofip.impots.gouv.fr/bofip/14109-PGP.html/ACTU-2024-00003
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