1: Definition of industrial and commercial profits

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343535 A

Article 35

French General Tax CodeIn force
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Updated 8 Nov 2023

I. - For the purposes of income tax, the profits made by the following natural persons are also deemed to be industrial and commercial profits:

1° Persons who, on a regular basis, purchase, in their own name, with a view to reselling them, buildings, businesses, shares or units in property companies or who, on a regular basis, subscribe, with a view to reselling them, to shares or units created or issued by the same companies.

1° bis Persons who, on a regular basis, purchase immovable property, with a view to erecting one or more buildings and selling them, en bloc or by premises;

2° Persons engaging in intermediary transactions for the purchase, subscription or sale of the property referred to in 1° ;

3° Persons transferring land divided into lots intended for construction where the land has been acquired for this purpose;

a, b, c and d (Repealed);

4° Persons benefiting from a unilateral promise of sale relating to a property that is sold by fractions or lots at the behest of these persons;

5° Persons who lease a commercial or industrial establishment equipped with the furniture or equipment necessary for its operation, whether or not the lease includes all or part of the intangible elements of the business or industry ;

5° bis Persons who directly or indirectly let furnished residential premises;

6° Adjudicataires, concessionaires and fermiers de droits communaux;

7° Members of ship co-ownerships mentioned in Article 8c.

7° bis (Repealed as from the date of entry into force of I of article 26 of law no. 96-1182 of 30 December 1996, JO of 31);

8° Persons who, on a professional basis, carry out, directly, through an intermediary or via a trust, transactions in financial contracts, also referred to as "financial futures instruments", mentioned in III of article L. 211-1 of the Monetary and Financial Code, provided that they have opted for this regime within fifteen days of the start of the first tax year in this respect. The option is irrevocable.

These provisions apply to persons who carry out, directly or through an intermediary, commodity futures transactions on a regulated market.

II. - (Repealed)

III. - For the purposes of this article, gifts inter vivos are not enforceable against the administration.

Mariela Petrova

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A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Mariela Petrova

Mariela Petrova

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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