I: Taxable income

Articles in this section · 24

Article 163 bis B

French General Tax CodeIn force

Updated 8 Nov 2023

I. - Sums paid by the company in application of savings plans set up in accordance with the provisions of Title III of Book III of Part Three of the Labour Code, are exempt from income tax established in the name of the employee.

II. - Income from securities held in one of the savings plans mentioned in I is also exempt from income tax if they are reused in this plan and subject to the same unavailability as the securities to which they relate. They are definitively exempt on expiry of the corresponding period of unavailability.

This exemption is maintained as long as the employees and former employees do not request the delivery of the units or shares acquired on their behalf.

II bis. - Income from securities held in a retirement savings plan mentioned in Article L. 224-1 of the Monetary and Financial Code or in a French sub-account of the pan-European individual retirement savings product mentioned in Article L. 225-1 of the same code is exempt if it is re-employed in this plan or sub-account and subject to the same unavailability as the securities to which it relates.

. II ter. - Notwithstanding the provisions of article 199 ter, the tax credits attached to the income mentioned in II and II bis are refundable. They are exempt under the same conditions as this income.

III. - A decree in the Conseil d'Etat sets out the terms and conditions for the application of this article.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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