French General Tax Code
In forceI. - The investment property companies referred to in I de l'article 33 de la loi n° 63-254 du 15 mars 1963 sont exonérées de l'impôt sur les sociétés pour la fraction de leur bénéfice qui provient de la location de leurs immeubles.
II. - When, under the conditions set out in I of Article 11 of the 1985 Finance Act no. 84-1208 of 29 December 1984, they hold shares in non-trading companies (sociétés civiles) formed as from 1 January 1985 with a view to constructing and managing buildings used for residential purposes up to at least three quarters of their surface area, the companies mentioned in I are also exempt from tax on the following:
a. The fraction of company profits corresponding to their shares in these non-trading companies and arising from the letting of the properties;
b. Income or advances that they grant to these same companies. However, this exemption is only granted during the five years following the creation of the latter companies and for the fraction of the advances that does not exceed, for each non-trading company, twice the capital subscribed by the real estate investment company.
