French General Tax Code
In force1. Taxpayers domiciled in France for tax purposes within the meaning of Article 4 B benefit from a reduction in income tax on the interest received in respect of the deferred payment they grant to farmers aged under forty who are setting up or have been setting up for less than five years, in connection with the sale of all the assets allocated to the exercise of an agricultural activity, a complete branch of activity or all their shares in an agricultural group or company in which they exercise.
2. The tax reduction applies when the following conditions are met:
a) The sale contract is concluded in the authenticated form;
b) Payment of at least half of the transfer price occurs on the date of conclusion of the contract referred to in a and the balance during a period between the eighth and twelfth year following that of this event;
d) The remuneration for the deferred payment is defined on the basis of an interest rate set on the date of the contract referred to in a within the limit of the ten-year constant maturity rate. 3. The tax reduction is equal to 50% of the interest taxed in the category of income from movable capital and subject to the income tax scale defined in 1 of I of Article 197. Interest is deducted up to an annual limit of €5,000 for single, widowed or divorced taxpayers and €10,000 for married taxpayers or partners in a civil solidarity pact subject to joint taxation. It applies in respect of the year in which the interest is received. 4. In the event of resolution, cancellation or rescission on the grounds of lesion of the sales contract, the tax reductions obtained are subject to reversal in respect of the year in which one of these events occurs.
