Book III: Employee dividends: incentives, profit-sharing and employee savings schemes

Companies which implement profit-sharing under the conditions provided for in this Title may deduct from the bases used for the assessment of corporation tax or income tax the amount of the sums paid in cash to the beneficiaries pursuant to the profit-sharing agreement. These sums are subject to income tax according to the rules set out in a of 5 of article 158 of the French General Tax Code. These…

When a beneficiary has subscribed to a company savings plan mentioned in Title III and allocates all or part of the sums allocated to him by the company under the profit-sharing scheme within a period specified by regulation, these sums are exempt from income tax up to an amount equal to three quarters of the average annual ceiling used to calculate social security contributions. When the employee and, where applicable,…

When a beneficiary mentioned in the third paragraph of article L. 3315-1 who has subscribed to an employee savings plan provided for in Title III allocates all or part of the sums allocated to him by the company under the profit-sharing scheme to the implementation of this plan, these sums are excluded from the basis of assessment for non-commercial profits and from the basis of assessment for industrial and commercial…

Incentive agreements concluded within a group of companies established in several Member States of the European Community are entitled to the exemptions provided for in articles L. 3315-1 to L. 3315-3 for premiums paid to their employees and to the persons mentioned in article L. 3312-3 by the companies located in France which are party to these agreements.

Where an agreement, valid within the meaning of article L. 2232-2, has been concluded or filed after the deadline, it will be effective between the parties but will only give entitlement to exemptions for calculation periods commencing after the filing date.