SCI (Real Estate Company) information
In most situations, we are dealing with a non-trading property company (SCI) formed between members of the same family. The SCI comes under the regime of partnerships, subject to income tax on its results taxed in the name of the partners (in proportion to their rights in the share capital) and not of the SCI.
The rents are taxed in the income tax category in the hands of the partners according to two methods:
The rents obtained from such an activity are qualified as commercial. The SCI is taxed for all its results to the corporation tax except if the furniture does not belong to one of the partners, if the furnished premises are rented under separate agreements, and if the SCI rents the furnished premises at the same price as the bare premises.
If the SCI rents both bare and furnished premises, what happens? The tax authorities accept that if the amount of revenue from the furnished rental does not exceed the amount of revenue from the bare rental by more than 10%, the SCI does not pay corporate income tax.