French General Tax Code
In forceThe tax provided for in article 990 D is not applicable:
1° To international organisations, sovereign States, their political and territorial subdivisions, and to legal persons, bodies, trusts or comparable institutions that they majority control;
2° To legal entities: legal persons, bodies, trusts or comparable institutions,
a) Whose real estate assets, within the meaning of Article 990 D, located in France, represent less than 50% of the French assets held directly or through one or more legal entities. For the application of this provision, real estate assets do not include assets held directly or indirectly that the legal entities defined in article 990 D or interposed legal entities allocate directly or indirectly to their professional activity other than real estate or to that of a legal entity with which they are not dealing at arm's length within the meaning of 12 of the article 39;
b) Or whose shares, units and other rights are the subject of significant and regular trading on a regulated market, as well as to legal entities of which these entities directly or indirectly hold the entire share capital;
3° To legal entities: Legal persons, bodies, trusts or comparable institutions which have their registered office in France, in a Member State of the European Union or in a country or territory which has concluded an administrative assistance agreement with France to combat tax evasion and avoidance or in a State which has concluded a treaty with France allowing them to benefit from the same treatment as entities which have their registered office in France :
a) Whose share of the property or properties located in France or of the real rights held directly or indirectly relating to such property is less than €100,000 or 5% of the market value of the said property or other rights;
b) Or set up for the purpose of managing pension schemes, to their groupings, as well as those, recognised as being of public utility or whose management is disinterested, and whose activity or financing justifies the ownership of property or property rights;
c) Or which take the form of investment companies with a preponderance of property with variable capital or property investment funds governed by articles L. 214-33 et seq. of the Monetary and Financial Code which are not set up in the form mentioned in Article L. 214-148 of the same code or those that are subject to equivalent regulation in the country or territory in which they are established;
d) Or which communicate each year or undertake and comply with an undertaking to communicate to the tax authorities, at their request, the location, consistency and value of the properties owned on 1 January, the identity and address of all shareholders, members or other members who hold, in any capacity whatsoever, more than 1% of the shares, units or other rights, as well as the number of shares, units or other rights held by each of them. The commitment is made on the date of acquisition by the entity of the property or real estate right or holding referred to in Article 990 D or, for property, rights or holdings already owned on 1 January 2008, no later than 15 May 2008 ;
e) Or who declare each year by 15 May at the latest, at the place set by the order provided for in article 990 F, the location, consistency and value of the properties owned on 1 January, the identity and address of shareholders, members or other members who hold more than 1% of the shares, units or other rights of which they are aware on the same date, as well as the number of shares, units or other rights held by each of them, in proportion to the number of shares, units or other rights held on 1 January by shareholders, partners or other members whose identity and address have been declared.
