French General Tax Code
In forceI. - At the request of the taxpayer, income tax on long-term capital gains realised by a sole proprietorship on the sale for valuable consideration of all fixed assets allocated to the exercise of a professional activity or a complete branch of activity or on the sale of a business, a craft business or a customer base may be subject to a staggered settlement plan where the parties have agreed to a deferred or staggered payment of the sale price relating to a business.
I bis. - At the request of the taxpayer, income tax relating to net gains withdrawn from the transfer for valuable consideration of company rights mentioned in 1 of I of article 150-0 A may be subject to a staggered settlement plan where the parties have agreed to a deferred or staggered payment of all or part of the transfer price of these corporate rights.
II. - The request for an instalment payment plan must be made no later than the payment deadline shown on the tax notice.
III. - The granting of the instalment payment plan is subject to the following cumulative conditions:
1° The sole proprietorship or company employs fewer than fifty employees, has a balance sheet total or has achieved a turnover not exceeding ten million euros in respect of the financial year during which the transfer takes place and meets the definition of a small business within the meaning of Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty ;
1° bis In the case of a company, the transfer referred to in Ia of this Article relates to the majority of the share capital. Following the transfer, the company is not controlled, within the meaning of 2° of III of Article 150-0 B ter, by the transferor;
2° The taxation does not result from the implementation of a rectification or an ex officio taxation procedure ;
3° The taxpayer complies with his current tax obligations;
4° The taxpayer provides the competent public accountant with appropriate guarantees to ensure the recovery of the tax relating to the capital gain.
IV. - The term of the staggered payment plan may not exceed that provided for the full payment of the transfer price nor extend beyond 31 December of the fifth year following the year of the transfer. The tax payment deadlines are set in accordance with the terms of payment of the transfer price set out in the deed.
V. - In the event of depreciation or insufficiency of the guarantees provided, the competent public accountant may, at any time, request additional guarantees.
VI. - If the additional guarantees referred to in V are not lodged or if the debtor fails to comply with the instalment payment plan deadlines or his current tax obligations, the instalment payment plan is terminated.
VII. - When payments are made on the due dates mentioned in IV of this article, the increase provided for in article 1730 of this code is capped, for each instalment, at the amount of legal interest mentioned in article L. 313-2 of the Monetary and Financial Code. The legal interest rate is that applicable on the day of the plan application.
VIII.-The benefit of the phased settlement plan referred to in I of this article is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, Commission Regulation (EU) No 1408/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agriculture sector and Commission Regulation (EU) No 717/2014 of 27 June 2014 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the fisheries and aquaculture sector.
