French General Tax Code
In forceI. - For the purposes of calculating industrial and commercial profits and profits from non-commercial occupations, contributions to compulsory basic or supplementary family allowance and old age insurance schemes, including contributions paid in exercise of the buy-back options provided for in Articles L. 351-14-1, L. 643-2, L. 652-7 et L. 663-3 of the Social Security Code, invalidity, death, sickness and maternity.
The same also applies to premiums paid under group insurance contracts, including those managed by an institution mentioned in article L. 370-1 of the Insurance Code for contracts mentioned in article L. 143-1 of the said code, provided for in article L. 144-1 of the Insurance Code by the persons mentioned in 1° of that same article and contributions to optional schemes set up under the conditions laid down by the articles L. 644-1 and L. 654-1 of the Social Security Code by the bodies referred to in articles L. 644-1 and L. 652-1 of the Social Security Code for the same risks and managed under the same conditions, in a specific section within the body, provided that, where these contributions or premiums finance cover relating to the reimbursement or compensation of expenses incurred as a result of illness, maternity or accident, such cover complies with the conditions set out in Article L. 871-1 of the same code.
Unless the option provided for in the second paragraph of article L. 224-20 of the Monetary and Financial Code is applied, the same applies to payments mentioned in 1° of article L. 224-2 of the same code made into a retirement savings plan mentioned in article L. 224-13 or article L. 224-28 of the same code or into a French sub-account of the pan-European individual retirement savings product mentioned in article L. 225-1 of the said code by the holders of the benefits mentioned in the first paragraph of I, with the exception of the portion of these payments corresponding to the additional guarantee provided for in 6° of article L. 142-3 of the Insurance Code.
II. - Contributions paid to the compulsory supplementary old-age insurance schemes mentioned in the first paragraph of I, for the portion of these contributions exceeding the minimum compulsory contribution, and the contributions or premiums mentioned in the second and third paragraphs of I are deductible:
1° For old-age insurance and for the supplementary guarantees provided for in 1°, 2° and 3° of article L. 142-3 of the Insurance Code within the framework of a retirement savings plan mentioned in article L. 224-13 or article L. 224-28 of the Monetary and Financial Code or a French sub-account of the pan-European individual retirement savings product mentioned in article L. 225-1 of the same code, up to a limit equal to the higher of the following two amounts:
a) 10% of the fraction of taxable profit retained within the limit of eight times the annual amount of the ceiling mentioned in article L. 241-3 of the Social Security Code, to which is added a further 15% on the fraction of this profit between one and eight times the aforementioned annual amount;
b) Or 10% of the annual amount of the ceiling mentioned in article L. 241-3 of the Social Security Code.
This limit is reduced, where applicable, by sums paid by the company to retirement savings plans which are exempt pursuant to a and a bis of 18° of article 81 ;
2° For provident insurance and for the additional cover provided for in 4° of article L. 142-3 of the Insurance Code under a retirement savings plan mentioned in article L. 224-13 or article L. 224-28 of the Monetary and Financial Code or a French sub-account of the pan-European individual retirement savings product mentioned in article L. 225-1 of the same code, up to an amount equal to the sum of 7% of the annual amount of the ceiling mentioned in article L. 241-3 of the Social Security Code and 3.75% of taxable profits, without the total thus obtained exceeding 3% of eight times the annual amount of the aforementioned ceiling;
3° For the loss of employment suffered and for the additional cover provided for in 5° of article L. 142-3 of the Insurance Code under a retirement savings plan mentioned in article L. 224-13 or article L. 224-28 of the Monetary and Financial Code or a French sub-account of the pan-European individual retirement savings product mentioned in article L. 225-1 of the same code, up to a limit equal to the higher of the following two amounts:
a) 1.875% of the taxable profit retained within the limit of eight times the annual amount of the ceiling mentioned in article L. 241-3 of the social security code;
b) Or 2.5% of the annual amount of the ceiling mentioned in article L. 241-3 of the social security code.
Income exempted pursuant to the articles 44 sexies to 44 nonies, 44 terdecies to 44 septdecies or 9 of the article 93 are used to assess the amount of taxable profit referred to in 1°, 2° and 3°. Long-term professional capital gains and losses are not taken into account.
III. - (Expired).
