Optimize your local taxes thanks to the change in the method of valuation of business premises
Even though the property tax constitutes a significant part of the budget of companies, article 4 of the finance law for 2021 which leads to the reduction by half of the rental value of industrial establishments, can constitute a major interest in the calculation of this tax.
There are currently 2 methods applicable to SEGRO assets, the accounting method and the tariff method. The majority of our premises are now subject to the “tariff” method.
It concerns a large part of professional premises and consists in applying to the areas used a rate per m² which varies according to their use.
The industrial method or “accounting” method consists, for its part, in taxing the fixed assets of the owner according to their cost price, independently of the occupied surfaces.
Until now, switching from the tariff method to the “accounting” method was very costly for companies, but the 2021 finance law now makes this valuation method favorable in many cases. This then results in a halving of the rates applied to soil and land (from 8% to 4%) and to buildings (from 12% to 6%).
This is why SEGRO has been conducting tax audits for several months, with the aim of first determining whether eligibility for the accounting method is proven, then secondly, quantifying the potential savings that result.
- Contact you to obtain the list of your fixed assets in order to determine if the threshold of €500k has been crossed (listing which must be communicated to us every year).
- If > €500k: Analyze the building and the operator's activity by carrying out a complete audit with our partner tax firm.
- Calculate the economy in the short and medium term and inform you of the results obtained.
- Initiate the necessary steps with the tax authorities to record the change of method.
We thank you for your cooperation in the study of the site you occupy. For more information, you can contact us at the following address: email@example.com .
We remind you that the change of method once eligibility has been established is mandatory in accordance with article 1499-00 A of the General Tax Code.
Finance law 2022, what impacts?
- Property tax: Attention, in 2023 a significant increase is to be expected on property taxes which should experience an increase of at least 7%.
For what ? This increase is explained by the high indexation of cadastral rental values (due to inflation), serving as the basis for calculating this tax.
- Tax on offices: From the year 2023, the departments of Bouches-du-Rhône, Var and Alpes-Maritimes will be subject to the annual tax on offices, commercial and storage premises and parking areas .
- The customers concerned will soon receive a detailed email on this subject (taxable areas, prices, amount to be expected for 2023, deadline, etc.).