(Article 48 of the 2015 Amending Finance Act)
Article 48 of the Amending Finance Act for 2015 postpones until 2016 the taking into account of the increase of commercial and professional premises' land values for the calculation of the tax bases.
As a reminder, land values are the basis for the calculation of many local direct taxes (among which property tax, company real estate contribution, etc.) and are assessed at the end of a process marked by a certain complexity. In order to modernize and make more understandable the calculation of local direct taxes to the public but also to take into consideration the rental market condition, the lawmaker adopted a reform of commercial and professional premises' land values.
The results of this revision of land values should be finally taken into consideration for the calculation of tax basis as from 2016.
However, as announced by the Government in March 2015, it was decided to adjust the land values reform in order to avoid a "too brutal economical disruption" caused in particular by effects of tax transfers between taxpayers. In that regard, it results from the Parliament preparatory work that a too important proportion of premises was affected by increases considered as "extreme".
Therefore, the lawmaker has approved the deferment until 2017 of the taking into account of the increase of commercial and professional premises' land values as well as some technical adjustments to limit tax transfers, as regards in particular counteraction coefficient (in order to take into consideration the successive reports of the reform) and the reinforcement of the smoothing mechanism (as from the first euro and for a 10-years period).