Section V: Calculation of tax

I.-The amount of property tax on built-up properties provided for in Article 1380 and levied during the financial year for the housing units mentioned in III of this article gives rise to a non-taxable corporation tax credit of the same amount for the benefit of the following legal entities:

1° Organismes d'habitations à loyer modéré mentioned in article L. 411-2 of the Code de la construction et de l'habitation, sociétés d'économie mixte mentioned in article L. 481-1 of the same code or sociétés anonymes de coordination entre les organismes d'habitations à loyer modéré mentioned in article L. 423-1-1 of the said code;

2° Bodies subject to the control, within the meaning of III of Article L. 430-1 of the Commercial Code, of the company referred to in Article L. 313-20 of the Construction and Housing Code;

3° Legal entities, including legal entities exempt from corporation tax by virtue of a legal provision, whose capital is wholly owned, directly or indirectly, by persons liable to corporation tax;

> 4° Public administrative bodies 4° Etablissements publics administratifs;

5° Retirement and provident funds;

When it gives rise to a non-taxable claim of the same amount, the property tax levied on the dwellings mentioned in III of this article is not included as a deductible expense when determining the taxable profit of the legal entities mentioned in 1° to 5° of this I.

II.-The amount of property tax levied on the dwellings mentioned in III of this article is not included in the deductible expenses when determining the taxable profit of the legal entities mentioned in 1° to 5° of this I. II.-The amount of property tax on built-up properties includes the tax referred to in article 1380 and, where applicable:

1° The tax for the management of aquatic environments and the prevention of flooding provided for in article 1530 bis;

>The special additional tax for the management of aquatic environments and the prevention of flooding provided for in article 1530 bis 2° De la taxe additionnelle spéciale annuelle au profit de la région d'Île-de-France prévue à l'article 1599 quater D;

>> 3° Des taxes spéciales d'équipement d'Île-de-France 3° Special equipment taxes in addition to the property tax on built-up properties provided for in articles 1607 bis, 1607 ter and 1609 B to 1609 G;

> 4° Additional taxes to the property tax on built-up properties provided for in articles 1607 bis, 1607 ter and 1609 B to 1609 G 4° Additional charges to property tax on built-up properties levied in accordance with article 1609 quater;

5° Deductions made by the State from these taxes and charges pursuant to Article 1641

III. IV.-I of this article applies for a period of twenty years from the first assessment of the property tax on built-up properties for the dwellings mentioned in III.

The twenty-year period is reduced by the number of years that the dwellings are fully exempt from property tax on built-up properties.

I ceases to apply to the dwellings referred to in III. I ceases to apply from the financial year following that in which the benefit of article 279-0 bis A is called into question in accordance with the conditions set out in II bis of article 284.

V.-The legal entity referred to in I of this article, which is legally liable for the property tax on built-up properties, shall offset the receivable against the corporation tax due for the financial year during which this tax was levied and, in the event of a surplus, for the three following financial years. Where applicable, the claim is reimbursed at the end of this period, up to the amount not deducted. By way of derogation, for legal entities that are exempt from corporation tax or that are not liable for corporation tax, the claim is immediately repayable.

The second paragraph of this V applies to all legal entities that are exempt from corporation tax or that are not liable for corporation tax. The second paragraph of this V also applies to small or medium-sized businesses, within the meaning of Article 51 of Law no. 2008-776 of 4 August 2008 on the modernisation of the economy, that meet the following conditions:

1° have fewer than two hundred and fifty employees;

2° Have an annual turnover not exceeding 50 million euros or a balance sheet total not exceeding 43 million euros. For the purposes of assessing the thresholds mentioned in 1° and 2° of this V, the sum of the number of employees and the sum of the turnover or balance sheet total of the company holding the debt and of all the legal entities with which it is not dealing at arm's length, within the meaning of Article 39(12), is taken into account.

The parent company mentioned in Article 39(12) of the French Tax Code is the parent company of the company holding the debt. The parent company referred to in Article 223 A is substituted for the companies in the group for the purposes of setting off the debt against the amount of corporation tax for which it is liable in respect of each financial year.

The debt is inalienable. The claim may not be assigned or sold, except in accordance with Articles L. 313-23 to L. 313-35 of the French Monetary and Financial Code.

In the event of a merger or other transaction, the claim may be assigned or sold. In the event of a merger or similar transaction taking place during the period referred to in the first paragraph of this V, the portion of the claim that has not yet been allocated by the transferring company is transferred to the transferee company.

VI.-The claim is declared in the form of a statement of account. VI -The claim is declared within the same timeframe as that for filing the income tax return for the financial year in which the property tax on built-up properties that gave rise to the claim was levied, and in accordance with the model drawn up by the tax authorities.

The parent company of a group, the transferring company or the transferee company must declare the claim within the same timeframe as for filing the income tax return for the financial year in which the property tax on built-up properties that gave rise to the claim was levied. The parent company of a group, within the meaning of Article 223 A, declares the claims on behalf of the companies in the group, including those relating to it, when filing the return relating to the group's overall income.