I: Income tax deducted at source

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182 A182 A bis182 A ter182 B182 B bis187

Article 182 B bis

French General Tax CodeIn force
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Updated 8 Nov 2023

1. The withholding tax provided for in Article 182 B is not applicable to royalties paid by a legal person in one of the forms listed in the first paragraph of 1 of Article 119 quater or by a permanent establishment to a legal person that is its associate or to a permanent establishment dependent on a legal person that is its associate. For the application of this article, the status of legal entity which is an associate of a legal entity and of legal entity which is an associate of a permanent establishment shall be recognised in accordance with the second and third paragraphs of paragraph 1 of article 119 quater.

For the purposes of this article, royalties mean payments of any kind received by way of remuneration for the use of, or the right to use, a copyright in a literary, artistic or scientific work, including cinematographic films and computer software, a patent, trademark or service mark, design or model, plan, secret formula or process, or information concerning industrial, commercial or scientific experience. Payments received for the use of, or the right to use, industrial, commercial or scientific equipment are considered to be royalties.

2. The exemption provided for in 1 is subject to the same conditions and justifications as those provided for in article 119 quater.

3. The provisions of 1 shall not apply where the royalties paid benefit a legal person or a permanent establishment of a legal person controlled directly or indirectly by one or more residents of States that are not members of the European Community and if the chain of holdings has as its main purpose or as one of its main purposes to take advantage of the provisions of 1.

Where, because of the special relationship existing between the payer and the beneficial owner of the royalties or because of the relationship between both of them and a third party, the amount of the royalties exceeds the amount that would have been agreed between the payer and the beneficial owner in the absence of such relationship, the provisions of 1 apply only to the latter amount.

4. A decree shall specify, as necessary, the terms and conditions for the application of this article.

Mariela Petrova

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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

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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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