French General Tax Code
In forceSubject to the provisions of article 150-0 B ter, the provisions of article 150-0 A do not apply, in respect of the year in which the securities are exchanged, to capital gains and losses realised in connection with a public offer, merger, demerger, takeover of a mutual fund by an open-ended investment company, conversion, division, or consolidation, carried out in accordance with the regulations in force or a contribution of securities to a company subject to corporation tax.
These provisions apply to the exchange or contribution of securities referred to in the first paragraph carried out in France, in another Member State of the European Union or in a State or territory that has concluded a tax treaty with France containing an administrative assistance clause with a view to combating tax fraud and evasion, as well as to transactions, other than transactions involving the contribution of securities to a company subject to corporation tax, for which the custodian of the securities exchanged is established in France, in another Member State of the European Union or in a State or territory that has entered into a tax treaty with France containing an administrative assistance clause with a view to combating tax fraud and tax evasion.
These provisions also apply to exchanges with a balancing payment, provided that this does not exceed 10% of the nominal value of the securities received. However, the capital gain is, up to the amount of this balancing payment, taxed in respect of the year of the exchange.
