French General Tax Code
In forceWhen a legal entity liable to corporation tax has the purpose of transferring the use of movable or immovable property to its members free of charge, the net value of the benefit in kind thus granted is not taken into account in determining taxable income and does not constitute distributed income within the meaning of articles 109 à 111. This benefit is tax-exempt in the hands of the beneficiary, unless the latter is a legal entity liable to corporation tax or a company liable to income tax under the rules governing industrial and commercial profits.
These provisions do not apply to legal entities which carry out revenue-generating transactions with third parties, unless these are ancillary transactions not exceeding 10% of their total revenue or resulting from an obligation imposed by the public authorities.
A decree shall determine the nature of the specific information that the companies mentioned in the first paragraph must provide annually to the tax department, independently of the declarations whose production is already provided for by this code (1).
This article shall apply to the benefits in kind mentioned in the first paragraph granted during a financial year opened until 31 December 2023.
