French General Tax Code
In forceAs from 1 January 1980, the rental value of tangible fixed assets acquired as a result of contributions, demergers, mergers of companies or transfers of establishments carried out as from 1 January 1976 may not be less than two-thirds of the rental value applied in the year preceding the contribution, demerger, merger or transfer.
The provisions of the first paragraph apply only to tangible fixed assets directly affected by the contribution, demerger, merger or disposal transaction, the rental value of which was retained in respect of the year preceding the transaction.
The rental values of property subject to property tax determined in accordance with this article are increased under the conditions provided for in Article 1518 bis.
As from 1st January 1992, the rental value of tangible fixed assets acquired as a result of transactions mentioned in the first paragraph carried out as from 1st January 1989 and until 31st December 1991 may not be less than 85% of the rental value adopted the year preceding the transaction when the bases of the establishments concerned by a transaction represented, in the same year, more than 20% of the business tax bases imposed for the benefit of the municipality in which they are located.
For the transactions mentioned in the first paragraph carried out from 1 January 1992, the rental value of tangible fixed assets may not be less than four-fifths of its amount prior to the transaction.
The same applies to the universal transfers of assets mentioned in article 1844-5 of the Civil Code and carried out on or after 1 January 2010, for the rental value of only the tangible fixed assets directly affected by these transactions.
By way of exception to the provisions of the fifth paragraph, for the transactions mentioned in the first paragraph carried out on or after 1 January 2005 involving the acquisition of fixed assets from a company that is the subject of receivership proceedings, the rental value of the tangible fixed assets may not, during the proceedings and in the two years following the closure thereof, be less than 50% of its amount prior to the transaction.
By way of exception to the fifth and sixth paragraphs, for the transactions referred to in the first paragraph carried out on or after 1 January 2006 and for the transactions referred to in the sixth paragraph, the rental value of the tangible fixed assets may not be less than:
a. 90% of its pre-transaction value for transactions between companies that are members of a group within the meaning of Article 223 A or Article 223 A bis;
b. Subject to the provisions of a, 50% of its amount before the transaction for transactions involving the acquisition of fixed assets provided for in a disposal plan or included in a disposal of assets under safeguard, reorganisation or compulsory liquidation, until the second year following that of the judgment ordering the disposal or authorising the disposal of assets during the observation period.
By way of exception to the fifth and sixth paragraphs, for transactions carried out on or after 1 January 2011 and referred to in the first paragraph or the sixth paragraph, the rental value of tangible fixed assets may not be less than:
1° 100% of its amount prior to the transaction where, directly or indirectly, the transferee or transferee company controls or is controlled by the transferring, contributed or demerged company, or these two companies are controlled by the same company;
2° 90% of its amount prior to the transaction for transactions other than those mentioned in 1° between companies that are members of a group within the meaning of Article 223 A or Article 223 A bis ;
3°Subject to the provisions of 1° and 2°, 50% of its amount prior to the transaction for transactions involving the takeover of fixed assets provided for in a disposal plan or included in a disposal of assets under safeguard, receivership or compulsory liquidation, until the second year following that of the judgment ordering the disposal or authorising the disposal of assets during the observation period.
By way of exception to the fifth and sixth paragraphs, the rental value of a tangible fixed asset transferred on or after 1 January 2011 and attached to the same establishment before and after the transfer may not be less than 100% of its amount before the transaction when, directly or indirectly, the transferee company controls the transferor company or is controlled by it or when both companies are controlled by the same company.
This article applies separately to the following two categories of fixed assets: land and buildings.
