French General Tax Code
In forceI. When a company has offered its employees stock options under the conditions defined in
Articles L. 225-177 to L. 225-184of the French Commercial Code or where one or more shareholders or unit holders of a company have undertaken to sell their shares or units to one or more employees of that same company at a price agreed at the time of the undertaking, taxation of the capital gain realised by the employees who have exercised the option, on the contribution of the shares or units to the company created under the conditions provided for in Article
220 quatermay, at the express request of the interested parties, be postponed until the transfer of the corporate rights received as consideration for the contribution.
The deferral of taxation is subject to the conditions set out in
Article 83 bis.II. Where one or more shareholders or unit holders of the company purchased under the conditions provided for in Article
220 quater contribute, after approval has been granted, their shares or units to the company created, taxation of the capital gain realised on this occasion may, at the express request of the interested parties, be deferred until the time of disposal of the corporate rights received as remuneration for the contribution.
III. The provisions of I and II apply to company buy-outs carried out under the conditions set out in Article 220 quater A. Where the buyout has been subject to the agreement of the Minister of Finance, as provided for in Article
220 quater B, the benefit of these provisions is subject to this agreement.
IV.-The advantages provided for in III are no longer applicable from the year in which one of the conditions provided for in article 220 quater A ceases to be met.
