Section VI: Special provisions applicable in the event of transfer, termination or death

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Article 204

French General Tax CodeIn force
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Updated 8 Nov 2023

1. In the event of the death of the taxpayer or of either of the spouses subject to joint taxation, income tax is assessed on the income disposed of by the deceased during the year of his death and on the industrial and commercial profits made since the end of the last taxed financial year. The tax also applies to income whose distribution or payment results from the death, if it was not previously taxed and to income that the deceased acquired without having disposal prior to his death.

However, income the disposition of which results from death or which the deceased acquired without having had the disposition prior to his death is subject to separate taxation when it would normally have fallen due only in a year subsequent to death.

The year of death of a pensioner taxed in accordance with the procedures set out in e of 5 of the article 158, the tax is assessed on the basis of the arrears accrued since the last monthly payment subject to tax in respect of the previous year.

1 bis. Taxes established after the death under the conditions provided by Article L 172 of the Book of Tax Procedures in the event of omission or insufficient taxation, as well as any other taxes owed by the heirs in respect of the deceased, shall not be allowed as a deduction from the heirs' income for the purpose of determining the income tax to which the heirs are liable.

2. The declaration of income taxable under this article shall be filed by the rightful claimants of the deceased. Where applicable, the notary in charge of the estate may file this declaration at the request of the successors if the estate has not been settled on the date the declaration is filed. It is subject to the rules and penalties laid down for annual declarations. Requests for clarification and justification provided for in the articles L 10 and L 16 du livre des procédures fiscales as well as the proposed rectifications mentioned in Article L 57 of the same book may be validly addressed to any of the heirs or signatories of the declaration of succession.

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

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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