Creation of the micro-BA regime replacing the flat-rate farm income scheme

Article 33 of the 2015 amending Finance Act abolishes the collective flat-rate farm income scheme and creates the micro-BA regime (article 64 bis of the general tax code): the taxable profit of small farmers equals the average of pre-tax receipts for the year and the two previous years, minus an 87% allowance (at least €305). The regime applies to farmers whose three-year average receipts do not exceed €82,200 excluding tax, a threshold updated every three years. It applies from the taxation of 2016 income, with a transitional period mixing flat-rate profits and receipts for 2016 and 2017.