French General Tax Code
In forceExempt from this exemption are production cooperative companies whose articles of association and operation are recognised as complying with the provisions of law no. 78-763 of 19 July 1978 on the status of production cooperative companies.
Excluded from the benefit of this exemption are cooperative production companies whose shares are admitted to trading on a regulated market or offered to the public on a multilateral trading facility subject to the provisions of II of Article L. 433-3 of the Monetary and Financial Code or more than 50% of whose capital is held by persons defined in 1 quinquies of article 207 of this code and holders of cooperative investment certificates, with the exception of those in which the majority of the capital is held by another cooperative production company under the conditions provided for in the amended article 25 of law n° 78-763 of 19 July 1978 on the status of sociétés coopératives de production.
The exemption is, however, applicable to sociétés coopératives de production resulting from the transformation of other companies under the conditions provided for in articles 48 to 52 of the same law and for which the non-cooperating members undertake, at the time of the conversion and under conditions set by decree, to transfer a sufficient number of shares to enable the cooperative members to hold at least 50% of the company's capital no later than 31 December of the seventh year following the year of conversion into a société coopérative de production.
The exemption also applies to sociétés coopératives de production that have set up a grouping between themselves covered by the articles 47 bis to 47 septies of the aforementioned law n° 78-763 of 19 July 1978 and the majority of whose capital is held by one or more cooperative companies that are members of this grouping or by employees employed by the other cooperative companies that are members of this grouping.
In the event of non-compliance with the undertaking mentioned in the third paragraph, the company pays the sums that it has not paid in respect of the business property tax pursuant to the same paragraph. The corresponding duties are increased by the late payment interest provided for in Article 1727, deducted from the date on which these taxes should have been paid.
