France Administrative Court of Appeal Clarifies Corporate Tax Liability for Furnished Rentals, Hidden Benefits

The French Administrative Court of Appeal of Toulouse Jan. 29 issued Decision No. 24TL00931, clarifying the corporate income tax treatment of furnished rental activity and taxation of undisclosed advantages. The taxpayer, an individual receiving the use of a residential property free of charge from a real estate holding entity, sought the discharge of additional individual income tax and social contributions. The tax authority and the Administrative Court of Nimes denied the taxpayer’s request. On appeal, the Administrative Court of Appeal of Toulouse found that: 1) the holding entity habitually furnished rental property as a commercial activity subject to corporate income ...