XIX: Declaration of income from transferable securities (IFU)

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242 ter

Article 242 ter

French General Tax CodeIn force
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Updated 8 Nov 2023

1. Persons who ensure the payment of income from transferable capital referred to in articles 108 to 125 as well as income from capitalisation bonds or contracts and investments of the same nature are required to declare the identity and address of the beneficiaries as well as, by type of income, details of the taxable amount and the tax credit, the gross income subject to a levy and the amount of the said levy and the amount of exempt income.

This declaration does not concern:

1° Exempt income and interest referred to in 7°, 7° ter, 7° quater, 9° bis and 9° quater of article 157 ;

2° (Not applicable);

3° (Repealed);

4° Income from holdings distributed by a company that is a member of a tax group within the meaning of article 223 A or Article 223 A bis to a company that is a member of the same group.

For the purposes of drawing up the return referred to in the first paragraph, the persons responsible for paying it shall individualise the income distributed by the companies referred to in 2° of 3 of article 158 and by the bodies or companies mentioned in 4° of 3 of this same article with regard to their eligibility for the 40% allowance mentioned in 2° of 3 of article 158.

The declaration mentioned in the first paragraph must be made in accordance with the conditions and deadlines set by decree. A copy of this declaration must be sent to the beneficiaries of the income concerned.

It must be sent to the tax authorities using a computerised process.

1 bis. The provisions of 1 are applicable to income taxable under the conditions provided by Article 238 septies B. The declaration must be made by the person with whom the securities or rights are deposited or entered in an account or, in other cases, by the borrower.

2. (Repealed)

3. Persons who intervene in any capacity whatsoever in the conclusion of loan contracts or in the drafting of the deeds evidencing them are required to declare to the administration the date, amount and terms of the loan as well as the names and addresses of the lender and borrower.

This declaration shall be made in accordance with the conditions and time limits laid down by decree.

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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