French General Tax Code
In forceIn the event that one of the companies mentioned in the fifth paragraph of Article 223 B in the wording in force for financial years commencing before 1 January 2019, indirect subsidies that arise from a transfer of assets making up the fixed assets or portfolio securities excluded from the long-term capital gains or capital losses regime in accordance with Article 219 for a price different from their actual value, deducted for the purposes of determining the profit or loss for financial years opened before 1 January 2019, are reported by the parent company to the overall profit or loss for the financial year in which one of these companies exits. Similarly, the parent company shall report other indirect subsidies, direct subsidies and debt waivers, also mentioned in this paragraph, which were deducted from the overall result of one of the five financial years preceding that of the exit if it was opened before 1 January 2019, to this result.
The second and third paragraphs of Article 223 F and the first paragraph of this Article do not apply when the exit from the group or the loss of the status of intermediate company or foreign company results from a merger placed under the regime provided for in Article 210 A of one of the companies mentioned in the second and third paragraphs of Article 223 F and in the first paragraph of this Article with another member company of the group, an intermediate company, a foreign company or the non-resident parent entity. The sums referred to in the second and third paragraphs of Article 223 F and the first paragraph of this Article are then included in the overall result when the latter company leaves the group, or ceases to be an intermediate company, a foreign company or a non-resident parent entity, or, in the case of successive mergers under the regime provided for in Article 210 A with a member company of the group, an intermediate company, a foreign company or the non-resident parent entity, when the last absorbing company leaves the group or loses the status of intermediate company, foreign company or non-resident parent entity. The same applies in the event of a merger of the parent company with another company in the group in accordance with the last paragraph of article 223 S. In this situation, the sums referred to in the second and third paragraphs of Article 223 F and in the first paragraph of this Article are included in the overall result when the group formed by the absorbing company is terminated or, in the case of successive mergers under the conditions provided for in the last paragraph of Article 223 S, when the group formed by the last absorbing company is terminated.
When a group benefits from the provisions set out in paragraph 5 of article 223 I, the part of the deficit relating to a company, calculated in accordance with the conditions set out in the aforementioned 5 and which may still be carried forward, may no longer be offset if that company leaves the group, unless that company's departure from the group results from its merger with another company in the group placed under the regime provided for in article 210 A. The same applies when such a company leaves the group, in respect of the part of the deficit relating to a company which it had absorbed within the group which has ceased, or which had been split up in its favour within the group which has ceased, calculated in accordance with the conditions set out in section 5 of Article 223 İ and which may still be carried forward, unless the exit from the group results from its merger with another company in the group subject to the regime set out in Article 210 A. The benefit of the provisions set out in 5 of Article 223 I is maintained in the event of a merger of the company holding the loss chargeable under the conditions set out in said 5 with another company in the group, subject to the approval set out in II of the article 209.
