SCPI: The calculation of tax
The SCPI are said to be "fiscally transparent". They are therefore not taxed directly and it is each partner (unitholder) who is liable for tax on income (mainly land) and on capital gains when the SCPI sells a property or when the partner sold his shares. Article is very technical, I warn you, and it is only for indicative purpose.
Every year, management companies indicate to investors the amounts to be reported with an explanatory notice for their tax return. Everything is therefore simpler to unitholders.
- 1 Taxation on property income
- 2 Taxes on financial income
- 3 Taxation on capital gains
Taxation on property income
Associate, individual emerged mainly on land revenues from rents collected by the SCPI reduced loads in fiscal year overall. It will have to choose between the micro-foncier or the real plan based on some criteria developed below.
He may also be asked to pay the tax on the financial products of the investments of the SCPI and may opt for the withholding.
The micro-foncier plan
You are subject to this regime if the gross property income you earn are less than €15,000 per year for real estate held live. The corresponding taxable income is set at an amount equal to the amount of these reduced revenues from a reduction of 30%. The amount is to BE online on the tax sheet N ° 2042.
The unitholder of SCPI may opt for a micro-foncier plan if it meets the following conditions:
- Being a property owner real estate which he draws a naked rental property income
- All of land gross income does not exceed €15,000 in respect of the taxation year (SCPI + live buildings)
- Shares of SCPI and the detained building live should not benefit from a specific tax system (Malraux, Besson, IRA, Robien, Girardin, Demessine, LMP, Leaseback, Censi Bouvard)
Investors receiving more, in the course of the year, property income of property held live (property rented or sold) can no longer benefit from the system of the micro-foncier for the land revenue of the SCPI. The real tax regime applies in fact.
Similarly those with only land revenue from SCPI are excluded from the plan of the micro-foncier. However, they receive an exemption from the tax authorities, under certain conditions, to file a statement of income tax no. 2044 and can wear directly revenues from real estate share on the tax return N ° 2042 (excludes shares of SCPI opening right to the title of the depreciation deduction provided for in article 31 bis of the CGI).
Note: the SCPI may, if all the members agree, not to distribute the entire profit of the current year for maintenance. It then meets the partner to declare the profit earned by the SCPI year and not distributed to the unitholder.
The real plan
When to use the real plan?
You don't have the choice if your land income is greater than €15,000 per year. On the other hand, you have the option to opt for this scheme even if your land income is below € 15,000 per year instead of the plan micro-foncier (CGI, art. (32 – 4). The option is then exercised an irrevocable for a period of three years.
The investor may have to opt for a real plan when he bought his shares of REITs to credit and interest that the amount of the loan interest is higher than the applied reduction of 30% in the micro-foncier regime. So going out calculators.
The management company of the SCPI does ask each year the amount of net income to be reported on the special form N ° 2044. All charges and management fees are deducted in advance by the management company. You may be faced with two options: a profit (income property) or loss (land deficit).
The benefit is subject to social contributions of 15.5% and then taxed at your marginal of tax bracket height (in which case your property income are from only the SCPI)
In the case of a loss, resulting from deductible expenses from income other than interest on loans but land, it can be deducted from the overall income of the partner within a limit of €10,700. Beyond this limit, the upper portion of the deficit be carried forward on the land revenue of the next 10 years.
In case of purchase of the shares of REITs to credit, the amount of the loan interest is not factored into the property income of the SCPI to the needs of the tax return. Indeed, the management company does not manage loans of its unitholders. These interests are deductible by the taxpayer of land revenues and so come to reduce the imposition of these income said. However, interest on loans may contribute to the formation of a deficit that is due on the total income and are only carried on land revenues in the next 10 years.
Taxes on financial income
A minor approach in taxation of the SCPI
Bearer shares of the SCPI partner may be asked to pay the tax on the financial products of the investments of the SCPI. Generally, the financial income distributed to the partners are weak.
The income is subject to taxation on the income scale after application of social contributions in force.
Taxation on capital gains
Capital gains on sales of real estate
On the sale by the SCPI of a building that it has less than 22 years (30 years for social security payments), eventually the gains is taxable. The SCPI is fiscally transparent, unitholders are therefore liable for capital gains tax.
With regard to individuals holding shares in their private assets, the tax is levied directly by the notary and the management company of the SCPI. The partners have no regulation to perform.
For holders subject to business profits (BIC, BA or BNC) or the corporate income tax regimes, the situation is different. They should include in their statement of result the share of added value that is paid to them.
Upon resale of the shares of REITs, the capital gain is the difference between the sum from the proceeds of the sale and the purchase price of the shares. As for the taxation of the property held live, consider the progressive reduction which will apply as follows:
- 6% rebate from the 6th to the 21st year
- 4% gradient between the 22nd year
Regarding the social levy exemption takes place from 30 years of detention. Before that date, unitholders receive the following discount:
- 1.65% abatement from the 6th to the 21st year
- 1.6% gradient between the 22nd year
- 9% gradient between 23rd and 30th year
The value added tax rate is 19% and 15.5% for social security payments. The amount of the value added tax is zero beyond 30 years of detention.
We can increasingly benefit from an exceptional reduction of 25% on disposals made between September 1, 2013 and 31 August 2014. It applies, after taking into account of the abatement for duration of detention, in assignments between 1 September 2013 and 31 August 2014.
This allowance is applicable both to the income tax and social contributions from real estate gains. It will be also applied to the surtax on high gains.
The Government has added via the Finance Act amendment for 2012, a surcharge depending on the amount of capital gains. This surcharge is applicable to capital gains real estate until 31/12/2015 and is implemented from an amount of capital gains real estate superior to 50 €000:
|Taxable value||Amount of the surcharge|
|From € 50.001 to € 60,000||2% PV – (€60,000 – PV) x 1/20|
|From 60.001 to €100.000||2% PV|
|From 100.001 to € 110,000||3% PV – (€110,000 – PV) × 1/10|
|From € 110.001 to € 150,000||3% PV|
|From € 150.001 to € 160,000||4% PV – (€160,000 – PV) × 15/100|
|From € 160.001 to € 200,000||4% PV|
|From 200.001 to € 210,000||5% PV – (€210.000 – PV) × 20/100|
|From € 210 001 to € 250,000||5% PV|
|From € 250.001 to € 260,000||6% PV – (€260,000 – PV) × 25/100|
|More than €260.000||6% PV|
(PV = amount of the taxable capital gain)
Other important points in the calculation of the capital gain:
- Less than €15,000 assignments of shares of REITs are subject to tax unlike sales held live property. It goes same for exemptions for some holders of old age or invalidity pension.
- Acquisition costs are taken into account for their amount real
- For partners submitted to the pension business profits (BIC, BA, BNC or IS), gains are offset with potential and taxable losses according to the system of professional capital gains. (if the transfer takes place within 2 years, the added value known as short term is imposed on the IR at progressive rates.) If the transfer takes place after 2 years, so-called value long term is imposed on 34.5%)
Example of the calculation of the tax on the added value of assignment
|Sale price of the shares as of February 19, 2012||€50,000|
|On 18 February 2004 acquisition price||€30.000|
|Acquisition cost of the shares (11%)||€3.300|
|Added value before deduction||€16,700|
|Total reduction of 6% between the 6th and the 8th year||€3.006|
|Net taxable capital gain in income tax||€10.270|
|Total reduction of 1.65 per cent between the 6th and the 8th year||€827|
|Net taxable capital gain to social contributions||€11.905|
|Taxation in the income tax||€1,951|
|Taxation to social contributions||€1,845|
|Amount of tax payable on the added value||€3.796|
The tax administration on the SCPI reference text:
BOI 2004 – SCPI and micro land regime. 2007 BOI – SCPI and income property
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