Les bénéfices agricoles :Taxation regimes
In France, agricultural profits generate different tax regimes, with accounting and tax obligations.
Summary
There are three main tax regimes for agricultural operators:
- The micro agricultural profit regime (micro-BA) : This regime applies to farms whose average VAT-excluded receipts over the last three years do not exceed a certain threshold (€91,900 for 2023, raised to €120,000 for 2024 and 2025). The taxable profit is calculated by applying a 87% allowance on the three-year average receipts.
- The simplified real regime (RS) : This regime applies to farms whose turnover exceeds the micro-BA threshold but does not exceed €365,000. The profit is determined by deducting expenses from receipts.
- The normal real regime (RN) : This regime applies to farms whose turnover exceeds the simplified regime threshold. Operators may also opt for this regime even if they are eligible for the simplified regime. The profit is calculated in the same way as for the simplified real regime.
| Tax regime | Receipts thresholds according to different tax regimes | Filing obligations |
|---|---|---|
| Micro-BA regime | Average receipts below €82,800 excl. VAT (2017) over the last 3 years. | You are exempt from filing a special declaration. You must file an additional income declaration form n°2042-C-PRO. |
| Simplified real regime | Average annual receipts over the last 2 years between €82,800 and €350,000. | Each year, no later than the 2nd working day following May 1st, you must complete the special declaration n°2139 - SD to report the previous year's (N-1) receipts.
It must be accompanied by a simplified balance sheet and income statement as well as a provisions statement. You must also file a detailed overall income declaration (n°2042) with your tax office (SIE). |
| Normal real regime | Average annual receipts over the last 2 years exceeding €352,000. | Each year, no later than the 2nd working day following May 1st, you must complete the special declaration n°2143 - SD reporting the results of the previous year or the fiscal year closed during this year, accompanied by the balance sheet, income statement, amortization schedule, capital gains, etc.
You must also complete a detailed overall income declaration (n°2042). |
There are different accounting and tax obligations for each regime. For example, operators under the micro-BA regime must keep a receipts register and retain invoices, while those under the real regimes must keep more detailed account books, including a journal book, an inventory book, and balance sheets.
The tax regime for agricultural profits is independent of the VAT regime.
It is recommended that agricultural operators consult a professional accountant to ensure compliance with tax rules and to benefit from available tax advantages.
Tax regimes
Context
Agricultural profits constitute the income generated by agricultural operators, as well as by farmers who carry out their activity within a civil company.
Income of agricultural origin is therefore taxed under the agricultural profits category in their income tax declaration, and several tax regimes are provided:
- the micro agricultural profits regime (micro-BA)
- the simplified real regime (RS)
- the normal real regime (RN)
Activities taxed as agricultural profits
The following activities fall under the agricultural profits regime:
- income from exploitation of rural property provided either to tenants, sharecroppers, or to owners farming themselves; that is, the sale of products from cultivation or livestock of all species, including riding centers, feline-canine breeding, beekeeping, poultry farming, fish farming, oyster farming…
- income from leasing single payment entitlements and income from the sale of biomass or energy production from products derived from agricultural exploitation;
- income from dog-drawn carriages*;
- income from payments for environmental services.
When the agricultural activity is carried out as an accessory to a commercial or industrial activity, the profits derived are taxed under Industrial and Commercial Profits (BIC) and not under agricultural profits (BA).
*Income from dog-drawn carriages: activities of carriage racing, teaching driving and working with dogs, and sled transport services or sled rental
Conversely, when commercial, industrial, artisanal, or liberal receipts are made as accessory to the agricultural activity, they are:
- attached to agricultural profits and taxed as such when their amount does not exceed 50% of the agricultural activity's turnover nor the sum of €100,000 (Note: cumulative with micro-BIC / micro-BNC regime is not possible).
- taxed separately in their category (BIC / BNC) if the operator is taxed under micro-BA or if one of the accessory thresholds to the real profit (above) is exceeded.
Presentation of the three tax regimes for agricultural operators
- The micro-agricultural regime
The micro-farm regime, called "micro-BA", applies as soon as the average VAT-excluded receipts of the farm calculated over the last 3 years do not exceed €91,900 (for income taxation 2023). This threshold is multiplied by the number of partners in GAEC (groupement agricole d'exploitation en commun), transparently, up to 4 partners. The 2024 Finance Law exceptionally raises this threshold to €120,000 for the application of the micro regime in 2024 and 2025.
- The simplified real agricultural regime
The simplified regime applies by right to farms whose turnover does not allow benefiting from the micro-BA regime, without exceeding €365,000.
If the threshold is exceeded, the regime change takes effect from the first day of the following fiscal year.
- The normal real agricultural regime
Finally, the normal real regime applies if the agricultural enterprise exceeds the simplified regime threshold. Agricultural operators subject to the simplified regime may also opt for the normal regime within the deadline for filing the tax return for the year or fiscal year preceding the one for which it applies.
The option applies to all agricultural activities.
Operation of agricultural tax regimes
Micro-BA
The taxable profit equals the three-year average of VAT-excluded receipts over the last 3 years, reduced by an 87% allowance.
| Tax base = receipts collected over the last 3 years / 3 |
|---|
Real tax regimes
Whether the real regime is normal or simplified, the agricultural profit is determined according to rules identical to industrial and commercial enterprises: the result is determined based on accrued receivables and actual expenses incurred.
The real regime is the method of calculating the taxable result by deducting expenses from receipts, so that the tax base reflects as accurately as possible the taxpayer's gain. Agricultural operators under the simplified real regime may, by option, evaluate their stocks on a flat-rate basis.
Accounting obligations of agricultural operators
Micro-BA regime
Entrepreneurs must keep:
- a document recording the daily detail of their professional receipts,
- retain invoices as well as all other supporting documents.
Simplified real regime
Entrepreneurs must keep:
- a journal book recording the detail of receipts and expenses,
- an inventory book including a simplified fiscal result account and the schedule of fixed assets and amortizations,
- invoices and other supporting documents related to receipts, expenses, and stocks, and the simplified balance sheet.
Normal real regime
Entrepreneurs must keep:
- a journal book maintained daily recording the detail of operations,
- an inventory book on which appear, besides inventories, the balance sheet and income statement,
- invoices and other supporting documents related to receipts, expenses, and stocks.
Tax obligations of agricultural operators
Micro-BA regime
As an annex to the overall income declaration n° 2042, an additional declaration n° 2042 C Pro indicates the amount of receipts (before allowance) for the tax year and the two previous years. This declaration also indicates the amount of capital gains realized during the year and not exempted.
Real BA regime
In addition to the overall income declaration n° 2042, the operator must submit a special declaration:
- Declaration n° 2139 must be filed by operators under the simplified regime, accompanied by the schedule of fixed assets and amortizations, a simplified balance sheet and income statement, a calculation table of the fiscal result, and a provisions statement.
- Declaration n° 2143 must be filed by operators under the real tax regime, accompanied by eight tables (n° 2144 to 2150) and five tables (n° 2151 to 2152 bis).
The declaration must be filed, regardless of the closing date, no later than the second working day following May 1st.
Regulatory references
Articles 63 and following of the CGI
Official tax bulletin: Agricultural profits
This series, dedicated to the presentation of agricultural profit, details:
- the scope (BOI-BA-CHAMP);
- the tax regimes (BOI-BA-REG);
- the tax base (BOI-BA-BASE);
- the settlement (BOI-BA-LIQ);
- reductions and tax credits (BOI-BA-RICI);
- filing obligations (BOI-BA-DECLA);
- collection, control and litigation (BOI-BA-PROCD);
- sectoral regimes (BOI-BA-SECT);
- transfer or cessation of activity (BOI-BA-CESS).
Appendix
La version initiale de cet article a été rédigée par Aurélie Brunet.
Aurélie BRUNET is a wealth management advisor.
