Property Wealth Tax (IFI) and the appliaction of a threshold tax limit
As a reminder, the legislator had put in place a mechanism for capping taxation. Thus, the amount of property wealth tax (I’Impôt sur la Fortune Immobilière) and income tax (l’Impôt sur le Revenu), including social contributions, was not to exclude 75% of the previous year’s income. In case of a surplus, the excess amount would reduce the amount of the IFI.
The mechanism could not be applied to the IFI for 2019 because of the White year (l’année blanche) on 2018 income through the CIMR (crédit d’impôt modernisation du recouvrement). Indeed, the administration refused its application because the tax was not paid.
IFI taxpayers can appeal for a difference in treatment compared to other taxpayers who were able to effectively benefit from the white year.
Our team is at your disposal to assist you in this process [email protected]