Extension of the replacement tax credit

In order to assist farmers engaged in activities requiring daily presence, the replacement tax credit is being extended until 31 december 2027.

It concerns natural persons having their tax domicile in France and carrying on an activity whose income is taxed in the category of agricultural profits.

It applies to expenses incurred by such persons to ensure their replacement for leave by:

• thedirect employment of employees ;
• the use of persons made available by a third party.

The tax credit is equal to 60% expenditure incurred (up to 17 days per year as a replacement for leave). It's 80% when expenses allow for leave replacement accident at work due to illness, treatment, or vocational training.

The benefit of this tax credit is subject to the condition that the activity carried out requires a daily presence of the taxpayer on its business and that its replacement is not covered by any other provision.

Increase in the rate of exemption from real estate tax on non-built property (GNWT) for agricultural land

To support farmers, the budget increases from 20 to 30% the rate of exemption from GNWT for agricultural land classified in one of the categories ‘land, meadows, pastures, orchards, vineyards, woods and heaths, lakes, ponds and gardens’.

For more information on GNWT, please see the corresponding card.

Measures for young farmers

Several measures in the budget law aim to encourage the transfer of farms to young farmers:

• where the transfer of an agricultural company is made to a young farmer, theabatement planned on capital gains from the sale of securities now set at €600,000 (compared to €500,000 previously). This allowance applies even if the assignment is carried out under a contract of installments;
• the transfer gains realized by an agricultural company are fully exempt from tax where revenue is less than €450,000 and the transfer is made to a young farmer (this threshold was previously set at € 350 000). Individual business This assignment must relate to a complete branch of activity or on all the rights or shares held by a taxpayer pursuing his professional activity in a business whose profits are subject to income tax and which are regarded as assets used for the pursuit of the profession. These capital gains are partially exempt from tax where revenue is less than €550,000 (compared to €450,000 previously);
• as regards the transfer of an agricultural company to a young farmer, the capital gains realized on the occasion of this transfer are now totally exempt from tax where they are less than €700,000 (compared to €500,000 previously). Capital gains are partially exempt when they between €700,000 and €1,200,000.

Sustainability of the scheme to support the hiring of seasonal agricultural workers

In order to make it easier to hire workers, the next law on the financing of social security (LFSS) provides for a permanent scheme to assist the hiring of seasonal agricultural workers, also known as TO-DE device (casual workers - jobseekers).

This arrangement, which was originally scheduled to end on December 31, 2025, allows the employer to be exempt from employer contributions on these hires.

The draft LFSS also envisages extending the benefit of this scheme to cooperatives:

• the use of agricultural equipment;
• fruit and vegetable packaging.