Question 17322 — taxes and duties

Summary

Mr. Mohamed Laqhila questions the Minister of the Economy and Finance on the eligibility of the construction-sale of buildings (real estate development) activity for the Dutreil transmission regime referred to in article 787 B of the CGI. The Dutreil transmission regime, which entitles you to a 75% exemption from transfer taxes free of charge under certain conditions, is reserved for shares or shares in companies carrying out an industrial activity, commercial, artisanal, agricultural or liberal. The real estate development activity is a civil activity whose profits are taxable, by determination of the law, in the category of industrial and commercial profits in accordance with 1° bis of I of article 35 of the CGI. This activity is therefore treated as a commercial activity for tax purposes. For the assessment of the nature of the activities eligible for the Dutreil transmission regime, the doctrine of the tax administration (BOI-ENR-DMTG-10-20-40-10 n° 10) refers to the indications given in the documentation relating to the regime of exemption of professional property from the ISF (BOI-PAT-ISF-30-30-10-10). This ISF doctrine, in force until October 11, 2018, indicated that “it is also necessary to take into consideration activities which are considered (commercial) within the meaning of tax law. [...] present of a commercial nature activities whose results are classified in the category of industrial and commercial profits pursuant to article 34 of the CGI and article 35 of the CGI, including in particular [...] the activities of dealers in goods and construction of buildings with a view to sale. The eligibility of the real estate development activity for the Dutreil transmission regime was therefore expressly confirmed by the administration. tax. The repeal of the ISF has nevertheless created uncertainty on this subject. Following the abolition of the ISF, the tax administration deleted from its BOFIP database the comments it had made on this tax, to which the administrative doctrine relating to the Dutreil transmission regime refers, which remains. In this context, he asks him to kindly confirm that, for the application of the Dutreil transmission regime, there is indeed instead of taking into consideration activities which are considered commercial within the meaning of tax law and that, in doing so, the real estate development activity remains eligible for this partial exemption regime.

Machine translation from French. The official text remains authoritative.

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