French General Tax Code
In forceI.-When a company sells a building to a leasing company and immediately regains use of the building under a leasing contract, the amount of the capital gain on the sale of the building may be spread equally over the financial years ending during the term of the leasing contract, without exceeding fifteen years. However, when the property is acquired by the company or the leasing contract is terminated, the balance is taxed immediately.
II.-I applies to buildings whose sale to a leasing company is carried out between 1 January 2021 and 30 June 2023 and is preceded by a financing agreement accepted by the lessee as of 28 September 2020, and no later than 31 December 2022, and which are allocated by the lessee to its commercial, industrial, craft, liberal or agricultural activity.
The first paragraph of this II does not apply to buildings allocated by the company mentioned in I to the management of its own assets. By way of exception, the first paragraph of this II applies when the property is rented by the company mentioned in I to a company with which it is dependent within the meaning of Article 39, paragraph 12 and which allocates the property to an activity mentioned in the first paragraph of this II.
