Abolition of the contribution on rental income (CRL) for individual landlords

As part of the income tax reform, Article 76 of the 2006 Finance Act (Article 60 of the bill) abolishes the annual contribution on rental income (Article 234 nonies of the General Tax Code) for individuals and tax-transparent companies. The contribution, paid by the landlord, was 2.5% of gross income from buildings completed more than fifteen years earlier. According to the Senate report, the abolition offsets the higher social levies resulting from the removal of the flat-rate deduction on rental income. Legal entities subject to corporate tax remain liable. The abolition applies to the contribution due on 2006 income, paid in 2007.