French General Tax Code
In force1. a. Taxpayers domiciled in France for tax purposes, within the meaning of the article 4 B, are entitled to an income tax reduction equal to 30% of payments made up to 31 December 2024 in respect of cash subscriptions to the capital of companies subject to corporation tax under ordinary law that publish one or more press publications or online press services providing political and general information, or one or more press publications or online press services devoted largely to political and general information.
The rate mentioned in the first paragraph of this 1 is increased to 50% when the company benefiting from the subscription has the status of an information press solidarity company, within the meaning of the article 2-1 of law no. 86-897 of 1 August 1986 reforming the legal status of the press.
b. This tax reduction also applies when the payments referred to in the first paragraph of a of this 1 are made to a company whose sole purpose under the Articles of Association is to hold shares in the capital of companies referred to in the same a and which is made up exclusively of individual shareholders. In this case, the amount of the payments made by the taxpayer in respect of the subscription is taken into account, for the purposes of the tax reduction, within the limit of the fraction determined by taking into account:
In the numerator, the amount of the payments made by the taxpayer in respect of the subscription is taken into account, within the limit of the fraction determined by taking into account 1° In the numerator, the amount of the payments made by the company in respect of cash subscriptions to the capital of the companies mentioned in the said a, during the financial year in which the taxpayer made the payments corresponding to his subscription to this company;
In the denominator, the amount of the payments made by the company in respect of cash subscriptions to the capital of the companies mentioned in the said a, during the financial year in which the taxpayer made the payments corresponding to his subscription to this company 2° And, in the denominator, the total amount of the payments received during that same financial year by the said company and relating to the subscription to which the payments made by the taxpayer relate.
The income tax reduction is granted in respect of the year in which the company's financial year ends during which the taxpayer made the payments corresponding to his subscription in that company, at the rate provided for in the first paragraph of the same a or, where the company's sole corporate purpose is to hold equity interests in companies mentioned in the second paragraph of the same a, at the rate provided for in the same second paragraph.
2. Payments giving entitlement to the tax reduction referred to in 1 are held within the annual limit of €10,000 for single, widowed or divorced taxpayers, and €20,000 for taxpayers subject to joint taxation.
3. When all or part of the securities subscribed by the taxpayer that gave rise to the tax reduction are sold before 31 December of the fifth year following the year in which they were subscribed, the tax reduction obtained is added to the tax due for the year in which they were sold.
The same applies when all or part of the securities subscribed by the company mentioned in b of 1 of this article that gave rise to the tax reduction are sold before 31 December of the fifth year following the year in which they were subscribed.
The first paragraph of this 3 does not apply in the event of redundancy, disability corresponding to classification in the second or third of the categories provided for in the article L. 341-4 of the Social Security Code or the death of the taxpayer or one of the spouses or partners bound by a civil solidarity pact subject to joint taxation.
4. The tax reduction mentioned in 1 does not apply to securities included in a share savings plan mentioned in article 163 quinquies D of this code or in an employee savings plan mentioned in Title III of Book III of Part Three of the Labour Code, nor to the fraction of payments made in respect of subscriptions that have given entitlement to the tax reductions provided for in articles 199 undecies B, 199 terdecies 0 A, or 199 terdecies-0 B of this code.
5. The benefit of the tax reduction mentioned in 1 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.
