French General Tax Code
In forceI. - The rate applied to the added value mentioned in 1 of II of Article 1586 ter is calculated as follows:
a) For companies with a turnover of less than €500,000, the rate is zero;
b) For companies with a turnover of between €500,000 and €3,000,000, the rate is equal to:
0.125% × (amount of turnover-500,000 €)/2,500,000 €;
c) For companies with turnover between 3,000,000 € and 10,000,000 €, the rate is equal to:
0.125% + 0.225% × (amount of turnover-3,000,000 €)/7,000,000 €;
d) For companies with turnover between 10,000,000 € and 50,000,000 €, the rate is equal to:
0.35% + 0.025% × (amount of turnover-€10,000,000)/€40,000,000;
e) For companies with turnover in excess of €50,000,000, to 0.375%.
The rates mentioned in b, c and d are expressed as percentages and rounded to the nearest hundredth.
For the application of this article, turnover means the turnover mentioned in 1 of II of article 1586 ter.
I bis. - When a company, regardless of its income tax regime, the place of establishment, the composition of its capital and the income tax regime of the companies that own it, fulfils the ownership conditions set out in I of Article 223 A for membership of a group, the turnover to be used for the application of I of this article means the sum of its turnover and the turnover of the companies that fulfil the same conditions for membership of the same group.
The first paragraph of this I bis applies even when the companies mentioned in this first paragraph are not members of a group mentioned in Articles 223 A or 223 A bis.
The said first paragraph is not applicable to the companies mentioned in this first paragraph. The said first paragraph is not applicable where the sum of the turnover referred to in the same first paragraph is less than €7,630,000.
II. - Companies with a turnover of less than €2,000,000 benefit from a rebate of €250.
III. - In the event of a contribution, transfer of business or demerger of a company carried out on or after 22 October 2009 or the universal transfer of assets and liabilities referred to in article 1844-5 of the Civil Code carried out on or after 1 January 2010, the turnover to be used for the application of I of this article is equal to the sum of the turnover of the companies involved in the transaction where the entity to which the business is transferred is owned, directly or indirectly, more than 50% either by the transferring or contributing company or by the shareholders of the company being divided together, or by a company that owns, directly or indirectly, more than 50% of the transferring or contributing company or of the companies resulting from the division together, or by a company that is more than 50% owned, directly or indirectly, by the transferring or contributing company or by the shareholders of the company being divided together, as long as the following conditions are simultaneously met:
- the sum of the contributions due minus the reliefs provided for in this article, on the one hand, by the transferring, contributing or demerged company and, on the other hand, by the new operator is less, without application of the first paragraph, by at least 10% than the assessments in respect of the business value added contribution that would have been due by these same companies if the transaction had not been carried out, minus the reliefs provided for in this article ;
- the activity continues to be carried out by the latter companies or by one or more of their subsidiaries;
- the companies in question have similar or complementary activities.
The conditions for exercising the holding of capital provided for in the first paragraph must be met at any time during the six months preceding the date on which the transaction referred to in the first paragraph is carried out.
This III no longer applies from the eighth year following the contribution transaction, transfer of business, demerger of business or universal transfer of assets referred to in Article 1844-5 of the Civil Code in question.
