French General Tax Code
In forceThe capital gains or losses mentioned in the first paragraph of II of l'article 202 ter, included in the assets of non-trading companies with a strictly real estate object, the units of which are held by an insurance company, a supplementary professional retirement fund mentioned in article L. 381-1 of the Insurance Code, a supplementary professional retirement mutual or union mentioned in article L. 214-1 du code de la mutualité or an institution for supplementary occupational retirement mentioned in article L. 942-1 of the Social Security Code in respect of mathematical provisions relating to unit-linked commitments under life insurance or capitalisation contracts, are not taxed when these non-trading companies are converted into open-ended real estate investment companies (sociétés de placement à prépondérance immobilière à capital variable). Capital gains or losses arising on a subsequent disposal of these assets are determined by reference to the value that these assets had for tax purposes prior to the conversion of the non-trading company with a strictly real estate object into an open-ended preponderantly real estate investment company.
These provisions apply to conversions carried out within five years of the publication in the Journal officiel of the order of the minister responsible for the economy approving the provisions of the general regulations of the Autorité des marchés financiers relating to property investment funds.
