French General Tax Code
In forceI. Payments of sums of money and the allocation of property or rights made in performance of the compensatory allowance under the conditions and according to the procedures defined in articles 274 and 275 of the Civil Code over a period, in accordance with the divorce agreement by mutual consent taking the form of an act under private signature countersigned by lawyers, filed with the minutes of a notary, or the divorce agreement approved by the judge or the divorce decree, no more than twelve months from the date on which the divorce agreement by mutual consent in the form of a private deed countersigned by lawyers, filed with a notary, has become enforceable or on which the divorce judgment, whether or not it is the result of a joint application, has become final, are eligible for an income tax reduction when they come from persons domiciled in France within the meaning of l'article 4 B.
The tax reduction is equal to 25% of the amount of the payments made, of the assets or rights allocated, retained for the value set in the divorce agreement by mutual consent taking the form of a private deed countersigned by lawyers, filed with the minutes of a notary, or in the divorce agreement approved by the judge or by the divorce decree, and within the limit of a ceiling equal to 30,500 € assessed in relation to the period mentioned in the first paragraph.
Where the compensatory allowance takes the form of an annuity in accordance with the provisions of the articles 276,278and 279-1 of the French Civil Code, the substitution of a capital sum for future arrears, paid or allocated over a period of no more than twelve months from the date on which the judgment ordering the conversion becomes final, also gives entitlement to the tax reduction. The tax base is then equal to the total reconstituted capital, limited to €30,500, and retained in the proportion that exists between the capital due on the date of conversion and the total reconstituted capital on that same date. The total reconstituted capital is defined as the value of the capital paid or allocated on the date of conversion, increased by the sum of the annuities paid up to the date of conversion and revalued according to the change in the average annual consumer price index recorded between the year of payment of the annuity and the year of conversion.
Where the payment of sums of money, the allocation of property or rights are made over the year during which the divorce agreement by mutual consent in the form of a private deed countersigned by lawyers, filed with a notary, has become enforceable or the year during which the divorce judgment, whether or not it is the result of a joint application, or the judgment ordering the conversion of the annuity into capital, have become res judicata and the following year, the amount giving entitlement to a tax reduction in respect of the first year may not exceed the amount of the ceiling mentioned in the second paragraph multiplied by the ratio existing between the amount of the payments of sums of money, property or rights awarded during the year in question, and the total amount of the capital as fixed in the divorce judgment or the judgment pronouncing the conversion which the debtor of the compensatory allowance has undertaken to make over the period mentioned in the first paragraph.
II. (Repealed)
