ISF 2017 declaration: form 2042 C or 2725… How to do it?

– Wealth tax declaration mandatory beyond the threshold– Macron reform without impact on the 2017 ISF declaration– Which Cerfa declaration form to use– 2017 ISF declaration online– 2017 declaration deadline– Supporting documents and documents to attach to the form 2725 – Wealth tax declaration and deduction on the main residence

2017 ISF threshold crossed, mandatory declaration

From what amount of assets must a solidarity tax declaration on wealth (ISF) be completed? Above 1.3 million euros, this administrative and tax formality is mandatory. It is up to the taxpayer to spontaneously complete an ISF declaration.

The tax threshold corresponds to the value of the assets held on January 1, 2017, net of deductible debts. This is referred to as taxable net wealth.

Find out more about the tax liability threshold: Seuil ISF 2017

Macron reform without impact on the declaration of ISF 2017 and ISF 2018

Emmanuel Macron's program on ISF aims to refocus this tax on the taxation of real estate assets and to grant an exemption from ISF for the financial assets of all taxpayers. On this occasion, the ISF would be renamed real estate wealth tax (IFI or ISFI).

As this reform is only at the draft stage, it will only see the light of day for the declaration of ISF 2019, according to the timetable communicated by Prime Minister Edouard Philippe on July 4, 2017 during of his policy speech. It therefore has no impact on the ISF 2017, which is based on the tax legislation in force on January 1, 2017. The 2017 declaration must therefore be made including all the components of the assets, shares, PEA, life insurance, employee savings and booklet Understood.

Form 2042 c or form 2725: which Cerfa form to use?

Declaration procedures differ from one taxpayer to another. We can in fact distinguish three situations: the simplified ISF declaration, the simplified ISF declaration and the declaration.

Form 2042 c: simplified ISF declaration

Between 1.3 and 2.57 million euros of net taxable assets, a taxpayer must complete their solidarity tax declaration on wealth at the same time as his tax return, with the additional declaration form 2042 C (printed Cerfa n° 11222*19).

This is a simplified declaration, without supporting documents or annexes to be sent to the tax authorities. > All the details: ISF 2017: how to complete form 2042 C

It is not necessary to make an immediate payment: in this case, the ISF is to be paid at the same time as the IR in mid-September, after receipt of the tax notice during the month of 'august.

Form 2725 SK: ISF declaration and simplified annexes

Above 2.57 million euros of net taxable assets, you must complete a normal ISF 2017 declaration: the ISF declaration form 2725 K or SK in paper version or 2725 to download from the Impots.gouv.fr website (Cerfa form no. 11284*18) in the event of a first ISF declaration.

In addition to this main declaration (4 pages), annexes must be attached. For those liable for the ISF 2017 who do not pay wealth tax abroad (an ISF exists in particular in Spain and in certain Swiss cantons) and who do not own certain assets (wood and forests, shares subject to a Dutreil pact), a maximum of three appendices must be attached as part of the simplified wealth tax declaration form 2725 SK: – Appendix s1: built and unbuilt real estate (land) – Appendix s2: shares, cash, life insurance , Sicav and FCP, other movable assets – Appendix s3: liabilities (deductible and non-deductible debts)

You must also attach supporting documents (see section supporting documents and documents to attach).

Form 2725 or 2725 SK: normal ISF declaration and complete annexes

Taxpayers who own assets on 1 January 2017 with a value of at least €2.57 million and assets subject to specific rules (forestry areas and investments, securities under the Dutreil pact) must complete a normal wealth tax declaration 2725 K or 2725 (for those declaring for the first time) and several annexes, the list of which is as follows: – Annex 1: real estate assets, main residence included – Annex 2: land (building land , agricultural land, woods and forests) and shares in agricultural, wine-growing or forestry land groups – Appendix 3-1: securities, cash, financial investments (including life insurance), exempt property (including professional property) – Appendix 3-2: shares or shares held by employees, corporate officers or retirees – Appendix 4: liabilities (deductible and non-deductible debts) – Appendix 5: wealth tax paid abroad

Online declaration of the ISF 2017: only for the joint IR-ISF declaration

Only a category of households subject to the ISF is entitled to complete an online declaration, in its space individual on impots.gouv.fr: those whose assets are between 1.3 and 2.57 million euros (with one exception, non-residents with no income from French sources) who declare their ISF 2017 along with their 2016 income.

In the event of a wealth tax declaration online, you must tick the box "Solidarity tax on wealth" at the start of step 3 (Income and expenses), at the very bottom of the page which allows you to select the different sections of the tax return to be entered according to each person's situation.

Advantage of the declaration on impots.gouv.fr: at the end of the procedure, the total amount of the 2017 tax (IR + ISF) to be paid in September is displayed. The sum also appears in the notice of declarative situation for income tax (Asdir), made available by the tax authorities in the private space, when the declaration procedures are completed.

2017 ISF declaration deadline

The ISF declaration schedule is not the same for all taxpayers. To find out which deadline applies, you must refer to the amount of taxable net wealth and the place of tax residence. The following situations can be distinguished:

2017 ISF declaration with the tax declaration

When you live in France and have net taxable assets of between 1.3 and 2.57 million euros, the declaration reduced wealth tax using form 2042 C must be made at the same time as the tax return. The deadline for the two declarations (IR and ISF) is therefore common: – paper IR-ISF declaration: 17 May 2017 (past date) – online IR-ISF declaration: 23 May 2017 in zone 1 (departments 1 to 19) May 30, 2017 in zone 2 (departments 2A to 19) June 6, 2017 in zone 3 (departments 50 to 95 and overseas departments)

Separate 2017 ISF declaration

Residents of France with net taxable assets on 1 January 2017 greater than or equal to 2.57 million euros must send their normal ISF declaration (form 2725) in a single copy and its annexes no later than June 15, 2017 to the personal tax department on which their domicile depends.

The submission must also include the supporting documents requested as well as the payment of the ISF.

2017 ISF declaration for non-residents

When you are a non-tax resident, several situations may arise:

> Deadline with assets between 1.3 and 2.57 million euros

– With income from French sources

The deadline for paper reporting with the supplementary income tax return (form 2042 C) was set for May 17, 2017 and the deadline for online reporting was May 23, 2017. Any late reporting exposes the taxpayer to financial penalties (10% increase on the tax due in the event of a late declaration).

– Without income from French sources

In this case, the taxpayer is only subject to ISF in France and must therefore complete a normal or simplified ISF declaration with form 2725, its annexes, supporting documents and payment. All of these documents must be sent by July 17, 2017 at the latest.

> Deadline with assets greater than or equal to 2.57 million euros

In this case, taxpayers have additional time compared to French residents with a deadline of July 17, 2017 to send their complete 2017 ISF declaration file.

2017 ISF declaration for residents of the Principality of Monaco

We can distinguish three deadlines for ISF declaration for Monegasque residents, whether their tax domicile is in France or in the Principality:– declaration reduced ISF 2017 with form 2042 C: May 17, 2017 – ISF 2017 declaration online at the same time as the tax declaration: May 23, 2017 – normal or simplified ISF 2017 declaration with form 2725: July 17 2017

ISF declaration: supporting documents and documents to attach

The owners of certain assets are required to attach supporting documents and documents required by the tax authorities.

Woods and forests, shares in forestry groups

To benefit from the 75% ISF exemption to which they are entitled, private forest owners must produce the following documents: – certificate or certificate issued by the departmental directorate of territories (DDT) proving that the woods and forests are likely to be developed or regularly exploited (guarantees of sustainable management provided for in the Forest Code) – declaration of commitment to exploitation for 30 years

Units or shares held by employees and corporate officers

For the application of the partial exemption from wealth tax to FCPE shares and shares of Sicavas (investment companies with variable capital d employee shareholding), the unitholder is required to produce a certificate determining the value eligible for the partial exemption.

This certificate must be requested by the unitholder from their custody account keeper several weeks before the ISF declaration (March 31, for example at Amundi).

Dutreil Pact

In the event of a minimum lock-up commitment of 6 years within the framework of a Dutreil pact, a certain number of formalities are required for taxpayers to benefit from the exemption from the three -quarters from which the securities concerned may benefit. In particular, he is required to send the following items and documents:

1st year of exemption: – copy of the registered deed recording the collective custody commitment – ​​certificate from the company issuing the securities certifying that the conditions linked to the commitment are met – document indicating the identity of the partner exercising the function of manager

Then, each following year during the term of the commitment: – certificate from the company on compliance with the exemption conditions – copy of the riders to the commitment, if applicable – document indicating the change of manager, the optionally

Liabilities and other deductions

To benefit from the deduction for liabilities, the person liable must attach the elements justifying the existence and the amount of the deductible debts, with the exception of tax debts (by nature known by the tax authorities). Among the documents to be produced, we can cite the following (non-exhaustive list): – deeds or writings concerning family loans (authentic deed, private deed) – loan contracts – bank account statements in the event of an overdraft (debit balance on January 1).– works invoices due on January 1– Urssaf certificate for social charges for the 4th quarter of 2016 for home workers payable in the 1st quarter of 2017

Investments in SMEs

The supporting documents to be attached when filing the ISF declaration in the event of an investment in an SME or in the capital of a social utility company (Esus) differ depending on the nature of the subscription made: – subscriptions for unlisted securities: individual statement sent by the issuing company – shares of FIP (local investment funds) or FCPI (mutual funds for innovation): information provided by the management company and lock-up commitment signed by the person liable – subscriptions for securities listed on a non-regulated market (Alternext, Marché Libre, Alternativa, AIM de Londres): transaction notice provided by the institution holding the account

Donations to certain organizations of general interest

To benefit from the 75% reduction in ISF for donations made to organizations of general interest, you must produce a tax certificate from the 'body. However, the tax authorities do not require this document to be produced at the same time as the ISF declaration, knowing that the sum can be given no later than the day of the declaration deadline.

The General Tax Code expressly provides in article 885-0 V bis A for a period of three months following the deadline for filing the declaration to provide supporting documents, i.e. September 15, 2017 at the latest.

Declaration of the principal residence: with or without reduction?

Housing presenting the characteristic of being occupied as a principal residence, whatever the type of property (house, apartment, castle, manor, barge) benefits from a tax reduction of 30% which is not calculated automatically by the tax authorities. In the ISF declaration, it is therefore up to the taxpayer to apply the corresponding deduction on the value of the accommodation on the real estate market.

Also read: ISF scale 2017