Revenue from the real estate wealth tax (IFI), which has replaced the ISF since 2018, could increase next year with an amendment to the draft budget for 2024, tabled by socialist deputies and retained at this stage by the government.
The objective of this amendment, reported on Wednesday by Les Echos, is to harmonize the basis of this tax for the approximately 164,000 French households who are subject to it, whether they hold their real estate assets directly or via a company, socialist MP Christine Pirs Beaune explains to AFP.
Currently, households subject to the IFI which directly hold their real estate assets can only deduct from the tax base the debts linked to these real estate assets. The rules are more advantageous for French people who own real estate assets via companiessince they can deduct from the basis of the IFI not only the debts contracted by this company in connection with these assets, but also other debts not linked to this real estate assets.
Equal treatment
The amendment tabled by Ms. Pirs Beaune and her socialist colleagues Christian Baptiste, Mickal Bouloux and Philippe Brun aims for equal treatment according to the explanatory memorandum, by no longer allowing debts not linked to the real estate assets of the company to be deducted. IFI base. It’s a anti-abuse mechanismsums up more simply the MP for Puy-de-Dème.
According to the Minister of Public Accounts, contacted Wednesday by AFP, 55% of those liable to the IFI declare that at least part of their real estate assets are held indirectly. Assets are very concentrated within these tax households, since three-quarters of the amounts of assets declared indirectly are declared indirectly. less than 30,000 householdswe add from the same source.
Introduced on October 13, the amendment of the four socialist deputies was retained by the government in the first part of the draft budget for 2024, which it passed without a vote a few days later using article 49.3 of the Constitution . If the text must now be examined by the Senate, and the government ultimately decides via 49.3 which proposals it retains or rejects, Ms. Pirs Beaune judges that it would be unwelcome to come back to this amendment.
No costing immediately
No figures for additional revenue linked to this harmonization of rules for households subject to the IFI were immediately available. According to government projections, published before the tabling of this amendment, IFI revenues must increase by 49 million euros in 2024 to reach 2.44 billion euros.
The real estate wealth tax concerns tax households whose real estate assets have a net value exceeding 1.3 million euros. Households subject to the IFI can benefit from a reduction corresponding to 30% of the market value of their main residence. According to the General Directorate of Public Finances, 163,895 households received a real estate wealth tax notice in 2022.
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