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Le régime fiscal des non-résidents tirant l’essentiel de leurs revenus en France

The taxation of GFA (Groupements Fonciers Agricoles) shares under the Impôt sur la Fortune Immobilière (IFI) is typically based on their market value as of January 1st of the tax year. However, exemptions exist when the shares qualify as professional property or are subject to long-term rural leases.

For goods to be classified as professional property, they must be used for agricultural activities that constitute a genuine profession. This entails the regular and consistent engagement in an activity that can sustain the individual’s needs.

In a specific case, taxpayers claiming professional asset status for their GFA shares, based on sharecropping leases related to rural properties, argued that their primary economic activity revolved around renting rural properties through sharecropping. However, the Court of Cassation upheld the decision of the Court of Appeal, ruling that the GFA shares could not be considered professional assets due to their low income, which did not constitute a majority of the owners’ resources. The taxpayers primarily declared agricultural deficits during the relevant periods, while their annual pensions exceeded 30,000 euros and 43,800 euros respectively.

Although the transformation of the Impôt de Solidarité sur la Fortune (ISF) into IFI on January 1, 2018 limited the scope to real estate assets under Article 975 of the General Tax Code (CGI), the case law regarding GFA shares remains relevant.

It is important to note that the taxation of GFA shares in the context of IFI depends on specific circumstances and the nature of the income derived from those shares. The determination of whether they qualify as professional assets involves assessing their role in providing a significant portion of the owners’ resources.

As the legal framework evolves, taxpayers and professionals alike should stay informed about applicable laws and case law, ensuring compliance with tax regulations and understanding the potential implications for the taxation of GFA shares. The specificities of each case and the income derived from GFA shares will play a vital role in determining their tax treatment under the IFI.

Professional Property Classification and GFA Shares

The classification of GFA shares as professional property for taxation purposes is contingent upon certain criteria, including the consistent engagement in agricultural activities that constitute a genuine profession. This heading explores the requirements for professional property classification and its implications for the taxation of GFA shares under the IFI.

Case Law and the Determination of GFA Share Status

The Court of Cassation’s role in determining the status of GFA shares and their eligibility for professional property classification is crucial. This heading examines the court’s decision in the specific case, where the Court of Cassation upheld the ruling of the Court of Appeal. It analyzes the factors considered by the court, such as the level of income derived from the shares and their contribution to the owners’ overall resources. The implications of this case law on the taxation of GFA shares under the IFI are discussed.

1) Article 975 du Code général des impôts :

Maître Grégory Damy, Avocat Nice, Droit fiscal.