0I bis : Transfers of assets outside France by companies

I. - A company which has transferred or transfers outside France, directly or indirectly, by itself or through a third party, elements of its assets to a person, to a body, in a trust or in a comparable institution, with a view to managing them in its interest or to assuming on its behalf an existing or future commitment, includes in its taxable income the results which derive from the management or disposal of these assets or of the property acquired in reinvestment.

These results, closed at the end of each of the company's financial years, are determined according to the rules applicable to the company's profit, independently of its other operations, from separate accounts kept on its behalf by the person, body, trust or comparable institution to which the assets have been transferred.

In support of the declaration of its results, the company produces:

A statement that mentions the nature, consistency and characteristics of the assets transferred or the property acquired in lieu, the person, body, trust or comparable institution to which the assets have been transferred and the State or territory in which it is established;

A declaration of the results that derive from the management or disposal of these assets.

The company is authorised to set off against the amount of corporation tax for which it is liable, in respect of each financial year, in respect of the results referred to in the second paragraph, the tax paid, where applicable, outside France, on the same results, provided that the latter is comparable to the corporation tax.

Failing compliance with the provisions of this article, the company shall include in its taxable income for each financial year a sum equal to the product of the amount of the real value, at the beginning of the same financial year, of the assets defined in the first paragraph by a rate equal to that mentioned in 3° of 1 of Article 39. For the application of this paragraph, the actual value of the assets at the start of a financial year is equal to the actual value of these same assets at the time of the transfer, increased by the income acquired since this date or, failing this, by the total of the sums calculated as specified in the preceding sentence. However, the company may provide proof that the result thus determined exceeds the result actually achieved, determined under the conditions set out in the second paragraph.

II. - The provisions of I do not apply to transfers resulting from the performance of insurance contracts or mandates.

III. - A decree shall set out the terms and conditions for the application of this article and the reporting obligations of the companies concerned.

IV. - The provisions of this article shall apply to the determination of taxable income for financial years commencing on or after 1 January 1992.

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