French General Tax Code
In force1 (Repealed)
1 bis (Repealed for royalties taken into account from 1 January 2002 in the results of grantors and concessionaires).
1 ter. The long-term capital gains or losses regime is not applicable to sums received in execution of a leasing contract relating to intangible elements of a business or a craft business.
2. Subject to the provisions of Article 41, net capital gains recorded in the event of the death of the operator are automatically subject to the long-term capital gains tax regime.
3. (Repealed)
4. (Expired)
5. Distributions by venture capital companies operating under the conditions of article 1-1 of law no. 85-695 of 11 July 1985 are subject, when the shareholder is a company, to the long-term capital gains tax regime if the distribution is taken from:
1° Net capital gains realised during financial years ending on or after 31 December 2001 from the disposal of securities held for at least two years;
2° Sums received by the venture capital company during the previous financial year in respect of:
a) Distributions of a fraction of the assets of a venture capital mutual fund or a professional investment fund, as provided for in IX of article L. 214-28 of the Monetary and Financial Code, from the sale of securities held for at least two years;
b) Distributions from an entity mentioned in 2° of II of article L. 214-28 of the same code, other than a venture capital mutual fund, a specialised professional fund covered by article L. 214-37 of the Monetary and Financial Code as it read prior to the ordonnance n° 2013-676 du 25 juillet 2013 modifiant le cadre juridique de la gestion d'actifs ou qu'un fonds professionnel de capital investissement, constitué dans un Etat ou territoire ayant conclu avec la France une convention fiscale qui contient une clause d'assistance administrative en vue de lutter contre la fraude ou l'évasion fiscale, prélevées sur des plus-values réalisées par l'entité lors de la cession de titres détenus depuis au moins deux ans.
When the securities sold are securities of companies established in a non-cooperative State or territory within the meaning of Article 238-0 A of this code other than those mentioned in 2° of 2 bis of the same Article 238-0 A, this 5 does not apply, unless the venture capital company provides proof that the operations of the company established outside France in which the shareholding is taken correspond to real operations which mainly have a purpose and effect other than allowing the localisation of profits in a non-cooperative State or territory.
