TLDR: Switching to the actual tax regime is mandatory if the average revenue exceeds €120,000 (excl. VAT) over three years for agricultural operators, or €391,000 (excl. VAT) for those already under the simplified regime. It is also automatic for activities covered by Article 63 (5th or 6th paragraph) of the French Tax Code (CGI) or if assets are included in a fiduciary estate.
Exceeding revenue thresholds
The actual tax regime becomes mandatory if the average revenue of an agricultural operator exceeds €120,000 (excl. VAT) over three consecutive years. The switch applies from the taxation of income for the first year following the three-year period.
For operators already subject to the simplified regime, exceeding an average of €391,000 (excl. VAT) over three years requires switching to the standard actual tax regime from the first financial year following the three-year period.
Activities automatically subject to the actual tax regime
Agricultural operators carrying out an activity mentioned in the 5th or 6th paragraph of Article 63 of the CGI are automatically subject to the actual tax regime.
Assets included in a fiduciary estate
Operators for whom all or part of the assets allocated to the business are included in a fiduciary estate (as defined in Article 2011 of the French Civil Code) are also automatically subject to the actual tax regime.
Option for the actual tax regime
Operators under the simplified or flat-rate regime may opt for the standard actual tax regime. This option must be submitted within the deadlines for declaring the results of the year or financial year preceding the one for which it applies.
Special cases
Operators wishing to adopt the actual tax regime from their first financial year of activity must exercise this option within the deadlines applicable to the submission of the declaration for their first period of activity.
Revenue calculation
The revenue to be considered for assessing the thresholds is the total revenue from all the operator's businesses, calculated excluding VAT.