France Tax Update - January 2015



After being approved by before the Special committee of the National Assembly, the Macron draft bill is scrutinized by deputies, since January 26th, 2015:

A lightened taxation of free shares (Article 34)

  • From a tax standpoint: taxation of the acquisition gain as capital gains and application of the abatement for holding period.
  • From a social standpoint: the employer’s social security contribution is reduced from 30% to 20%; the employee’s social contribution of 10% would be abrogated and substituted by 15.5%-social contributions.
  • From a legal standpoint: the minimal vesting and holding period would be reduced from four years to two years.

Extension of the tax regime of warrants for young companies (Article 35)

  • If conditions are met, the favorable tax regime could apply to young companies set up further (i) to a restructuring, a concentration, an extension or (ii) to the transfer of a new activity from another young company that satisfies the conditions provided under the favorable tax regime.
  • If conditions are met, the favorable tax regime could apply to warrants granted by a parent company to the employees of a subsidiary.

Creation of a société de libre partenariat (Article 35 quarter)

  • A new type of investment funds dedicated to invest in  private equity in companies would be created. This fund would have the corporate form of a specific limited partnership (société en commandite simple).
  • From a tax standpoint, this fund would be tax transparent and his tax regime will follow the one applied to private equity professional funds (Fonds Professionnel de Capital Investissement).

Accounting requirements to be lightened for micro companies (Article 55)

If conditions are met, individual companies would be exempt of filing their annual accounts. Companies would have the possibility to fill simplified annual accounts.