French General Tax Code
In forceI. - Subject to the provisions of I of l'article 257 :
1° Deeds of formation of companies or economic interest groupings which do not contain a transfer of movable or immovable property, between the partners or other persons, are subject to registration duty or land registration tax on the amount of the contributions less liabilities;
2° Contributions of immovable property which are made to associations formed in accordance with the loi du 1er juillet 1901 et au livre Ier de la deuxième partie du code du travail (syndicats professionnels) sont soumis aux mêmes droits ou taxes que les apports aux sociétés civiles ou commerciales ;
3° Contributions made to a legal entity subject to corporation tax by a person not subject to that tax are treated as transfers for consideration insofar as they relate to real estate or real estate rights, goodwill, a customer base, a right to a lease or to a promise to lease.
I bis. - In the event of a contribution made under the conditions set out in II of l'article 151 octies, by an individual to a company of all the fixed assets allocated to the exercise of a professional activity, the assumption of the liabilities attached to the assets of the type listed in 3° of I which are included in the contribution, is treated as a transfer for consideration.
II. - When a legal entity whose profits are not subject to corporation tax becomes liable to that tax, the change in its tax status makes transfer duties and taxes payable for valuable consideration on outright contributions made to it since 1 August 1965 by persons not subject to that tax. The duties are levied on the market value of the assets on the date of the change.
III. - (Repealed).
