French General Tax Code
In forceSont également exonérés de l'impôt sous réserve des dispositions de l'article 208 A :
1° (Abrogé à compter du 1er janvier 1993) ;
1° bis-Les sociétés d'investissement qui sont régies par les articles L. 214-127 et seq. of the Monetary and Financial Code, in respect of the portion of profits arising from the net proceeds of their portfolio or from capital gains realised on the sale of securities or shares forming part of this portfolio. These companies will cease to benefit from the provisions of this paragraph three years after their creation, if their shares are not admitted to trading on a regulated market before that time;
1° bis A-Variable capital investment companies for profits made within the scope of their legal object;
1° ter (Repealed);
1° quater and 1° quinquies (Repealed with effect from 1 January 1993);
2°Companies whose exclusive object is the management of a portfolio of transferable securities which are governed by articles L. 214-127 et seq. of the Monetary and Financial Code, in respect of the capital gains they make on the disposal of securities or shares forming part of that portfolio;
3° and 3° bis (Repealed);
3° ter-Les sociétés immobilières de gestion visées à l'article 1er du decree no. 63-683 of 13 July 1963, for the fraction of their net profit that comes from the rental of their properties;
3° quater-Companies which, on 1 January 1991 were authorised to bear the name of société immobilière pour le commerce et l'industrie referred to in article 5 of order no. 67-837 of 28 September 1967 relating to leasing operations and property companies for commerce and industry, for the portion of their net profit derived from leasing transactions carried out in France and entered into before 1 January 1991, as well as for capital gains generated by the sale of buildings in connection with these transactions.
Parrogation aux dispositions du premier alinéa, les sociétés immobilières pour le commerce et l'industrie sont, sur option de leur part exercée avant le 1er juillet 1991, exonérées d'impôt sur les sociétés pour la fraction de leur bénéfice net provenant d'opérations de crédit-bail réalisées en France, conclues avant le 1er janvier 1996 et portant sur des immeubles affectés à une activité industrielle ou commerciale ou sur des locaux à usage de bureaux neufs et vacants au 1er octobre 1992, ainsi que pour les plus-values dégagées par la cession d'immeubles dans le cadre de ces opérations.
The net profit of the companies referred to in the first and second paragraphs from the simple rental of their buildings, by contract entered into before 1 January 1991, to natural or legal persons carrying on an industrial or commercial activity there, is retained for the calculation of corporation tax up to:
20% of its amount for the financial year ending in 1991;
40% for the financial year ending in 1992;
60% for the financial year ending in 1993;
80% for the financial year ending in 1994;
100% for the financial years ending in 1995 and thereafter.
Profits deriving from operations that are totally or partially exempt pursuant to the first to eighth paragraphs must be distributed up to 85 per cent. 100 of the exempted fraction of their amount before the end of the financial year following that in which they were made.
Sums invested, either directly or through subsidiaries, in foreign fixed assets are subject to corporation tax in proportion to the exempted profits and reserves in relation to the total amount of profits, reserves and capital. However, they are exempt when they come from loan funds;
3° quinquies-Companies approved for the financing of telecommunications whose sole purpose is the activity mentioned in I of article 1 of law no. 69-1160 of 24 December 1969 for the portion of profits from leasing contracts entered into with the public operator prior to 1 January 1993 and for the capital gains they realise in connection with these transactions as well as for the portion of profits and capital gains they realise as a real estate company for commerce and industry.
Les sociétés agréées pour le financement des télécommunications qui n'ont pas pour objet exclusif l'activité mentionnée au I de l'article 1er de la loi n° 69-1160 du 24 décembre 1969 pour la partie des bénéfices provenant des contrats de crédit-bail conclus avec l'exploitant public avant le 1er janvier 1993, si elles apportent à une société immobilière pour le commerce et l'industrie la branche d'activité exercée au titre du e du I de l'article 1er de la loi n° 69-1160 du 24 décembre 1969.
Dividends received by the transferring company from the société immobilière pour le commerce et l'industrie referred to in the second paragraph are exempt from corporation tax until 31 December 1993. They are retained for the calculation of this tax up to :
25% of their amount in 1994;
50% of their amount in 1995;
75% of their amount in 1996;
100% of their amount in 1997 and thereafter.
The total or partial exemption is subject to the condition that dividends not subject to corporation tax from the société immobilière pour le commerce et l'industrie are redistributed by the transferring company before the end of the financial year following that in which they are received;
3° sexies (repealed for financial years opened on or after 1 January 2000) ;
3° septies-Venture capital companies operating under the conditions provided for in article 1-1 of the aforementioned law no. 85-695 of 11 July 1985, on net income and capital gains from their portfolio other than those relating to securities remunerating the contribution of their activities which do not fall within their corporate purpose as well as, for venture capital companies mentioned in the second sentence of 1° of the aforementioned article 1-1, on the ancillary services they provide;
3° octies-Les fonds communs de créances for profits made within the scope of their legal purpose;
3° nonies-Les sociétés de placement à prépondérance immobilière à capital variable régies par les articles L. 214-33 et seq of the Monetary and Financial Code;
4° (repealed);
5° Allotment garden organisations defined in Article L 561-2 of the Rural and Maritime Fishing Code, where their activity, considered as a whole, is carried out under conditions such that it can be considered to be disinterested.
However, these organisations may remain subject to tax under the conditions provided for in 5 of Article 206;
6° Public establishments for their subdivision and land sale operations belonging to them.
