French General Tax Code
In forceI. The following are considered as French source income:
a. Income from real estate located in France or rights relating to such real estate;
b. Income from French transferable securities and all other transferable capital invested in France;
c. Income from businesses located in France;
d. Income from professional activities, whether salaried or not, carried out in France or profit-making operations within the meaning of the article 92 and carried out in France;
e) Profits from operations defined in article 35, when they relate to businesses operated in France as well as to real estate located in France, to real estate rights relating thereto or to shares and units in unlisted companies whose assets are mainly made up of such property and rights ;
e bis) The capital gains mentioned in articles 150 U, 150 UB and 150 UC, at 6 ter of article 39 duodecies and in f of 1° of II of article 239 nonies, where they relate to:
1° To real estate located in France or to rights relating to such real estate;
2° To units in real estate investment funds mentioned in article 239 nonies or to units or rights in bodies governed by foreign law that have an equivalent purpose and are similar in form, the assets of which are, on the date of the disposal, mainly made up directly or indirectly of property and rights mentioned in 1° ;
3° A corporate rights in companies or groupings that come under Articles 8 to 8 ter whose registered office is located in France and whose assets are mainly made up directly or indirectly of property and rights mentioned in 1°;
e ter) Capital gains that result from the disposal of:
1° Of shares in listed property investment companies mentioned in Article 208 C whose assets are, on the date of the disposal, mainly made up directly or indirectly of property and rights mentioned in 1° of e bis ;
2° Shares in open-ended real estate investment companies (sociétés de placement à prépondérance immobilière à capital variable) referred to in 3° nonies of Article 208, the assets of which are, on the date of disposal, mainly made up directly or indirectly of property and rights referred to in 1° of e bis ;
3° Units, shares or other rights in organisations, whatever their form, with similar characteristics, or subject to equivalent regulations, to those of the companies mentioned in 1° or 2°, whose registered office is located outside France and whose assets are, on the date of the disposal, mainly made up directly or indirectly of the assets and rights mentioned in 1° of e bis ;
4° Units or shares in companies listed on a French or foreign market, whose assets at the end of the three financial years preceding the sale mainly consisted directly or indirectly of the assets and rights referred to in 1° of e bis. If the company whose units or shares are being sold has not yet closed its third financial year, the composition of the assets is assessed at the close of the only financial year(s) closed or, failing that, at the date of the sale ;
5° Units, shares or other rights in organisations, whatever their form, that are not listed on a French or foreign market, other than those mentioned in 3° of e bis, whose assets at the end of the three financial years preceding the transfer mainly consist, directly or indirectly, of the assets and rights mentioned in 1° of e bis. If the organisation whose units, shares or rights are being sold has not yet closed its third financial year, the composition of the assets is assessed at the close of the only financial year(s) closed or, failing that, at the date of the sale;
f. The net gains mentioned in I of article 150-0 A and resulting from the transfer of company rights, as well as those mentioned in 6 of II of the same article withdrawn from the repurchase by an issuing company of its own securities, when the rights held directly or indirectly by the transferor or the shareholder or partner whose securities are repurchased, are issued by a company subject to corporation tax and having its registered office in France ;
f bis) The distributions referred to in 7 of II of Article 150-0 A relating to assets located in France, with the exception of those made by entities formed on the basis of foreign law;
f ter) The distributions referred to in 7 bis of the same II deducted from net capital gains on the disposal of assets located in France, with the exception of distributions of capital gains by entities formed on the basis of foreign law;
g. Amounts, including salaries, paid from 1 January 1990, corresponding to artistic or sporting services provided or used in France.
II. The following are also considered as French source income when the debtor of the income has his tax domicile or is established in France:
a. Pensions and life annuities;
b. Income defined in article 92 and received by inventors or as copyright, income received by breeders of new plant varieties within the meaning of articles L623-1 to L623-35 of the Intellectual Property Code, as well as all proceeds from industrial or commercial property and assimilated rights;
c. Sums paid as remuneration for services of any kind provided or used in France.
