Chapter III: Other duties and taxes

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1019

Article 1019

French General Tax CodeIn force
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Updated 7 Nov 2023

Any contribution, sale or exchange of securities that has been approved under the conditions provided for in the fifth paragraph of article 42-3 of law no. 86-1067 of 30 September 1986 relating to freedom of communication is subject to a tax based on the value of the securities contributed, transferred or exchanged. This tax is payable by the person who, at the end of the contributions, disposals or exchanges carried out on its securities, transferred control of the company holding the authorisation to use the radioelectric resource.

The tax applies to all contributions, disposals or exchanges whose cumulative total over six months reached an amount at least equal to ten million euros and resulted in the transfer of control of the company holding the authorisation.

The rate of the tax is set at:

1° 20%, if the approval referred to in the first paragraph of this article occurs in the first five years following the issue of the authorisation;

2° 10%, if the approval occurs between the sixth and tenth years following the issue of the authorisation;

3° 5%, if the approval occurs after the tenth year following the issue of the authorisation.

The amount of tax paid may not exceed 26% of the gross capital gain on the disposal of the securities.

Any contribution, disposal or exchange of securities made between companies in the same group, within the meaning of article 223 A or article 223 A bis, is exempt from tax.

The chargeable event and the tax liability occur at the time of issue, by the Autorité de régulation de la communication audiovisuelle et numérique, of the authorisation provided for in the fifth paragraph of article 42-3 of the aforementioned law no. 86-1067 of 30 September 1986.

This tax is due and paid to the public accountant no later than the second working day following 1 May of the year following that of the contribution, transfer or exchange. Payment shall be accompanied by a statement, in accordance with the model provided by the administration, showing the information required to identify the taxable person and to determine the amount due.

This tax shall be collected according to the rules and under the penalties and guarantees applicable to registration duties.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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