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2. BASIS OF TAXATION

The complementary personal tax is assessed on the following bases:

Houses. — By houses are meant premises or parts thereof for the private use of taxpayers, including commons, parks or gardens belonging to them, but not including buildings used exclusively for the exercise of some profession, trade or industry. The tax is payable by any person who occupies houses or reserves them for occupation, even partially or temporarily, by his family or servants.

The rental value of these houses is the gross income on which the cadastral income is based, or the actual or presumed income when occupation is limited to part of a house not included separately in the cadastral survey.

Furniture. — The rental value of furniture is fixed at 5 per cent of its capital value as determined by the Law of August 28th, 1921,2 establishing a tax on furniture.

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When houses are let furnished, account must be taken of rental value both of the house and of the furniture.

Domestic Servants. — The expenditure index representing the services of domestics and other persons is fixed at:

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Horses. — The index figure in respect of horses used for riding and driving4 is fixed at 12,000 francs per horse.

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Carriages, Motor-cars, Canoes and Steamboats, Motor-boats and Sailing Vessels, Aircraft. — The expenditure index applying to these means of transport varies from 2,000 to 50,000 francs, according to rules to be fixed by Royal Decree.5

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Division of Indices. — Since the object of the complementary personal tax is that each taxpayer shall pay according to his standard of living, measures have had to be taken to prevent persons dividing their indices with one another and thus unduly benefiting by a reduction of or even exemption from tax. The law therefore lays down that persons living together so as to form one household may not divide their indices. The tax is assessed on all the taxable elements and is payable by the head of the family or the person who occupies the position of head of the household.

Division, however, is allowed between persons who constitute associations having civil personality and not formed for purposes of gain.

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