Section III: Determination of taxable profit

1. The provisions of articles 210 A and 210 B apply to transactions exclusively involving legal entities or bodies liable for corporation tax. 2. These provisions only apply to mergers, demergers and partial contributions of assets of a complete branch of activity carried out for the benefit of foreign legal entities by French legal entities if the elements contributed are effectively attached to a permanent establishment of the foreign legal…

The capital gains that may arise from a transaction referred to in article 48 of law n° 78-763 of 19 July 1978 on the status of sociétés coopératives de production are taxable in the name of the société coopérative de production under the following conditions: a. Capital gains relating to non-depreciable fixed assets are subject to a deferral of taxation until the disposal, for consideration, of these fixed assets by…

I. – Net capital gains generated on the disposal of premises for office, commercial or industrial use or building land by a legal entity subject to corporation tax under the conditions of ordinary law are subject to corporation tax at the rate mentioned in IV of article 219 when the transfer is made to a legal entity. For the application of the first paragraph, the office premises or commercial or…

Non-repayable subsidies paid by employers to companies or organisations duly authorised to receive them as part of their contribution to the construction effort are not included in the taxable profits of the financial year in which they were paid, for the purposes of the corporation tax due by these companies or organisations. The amount of the grant is deducted from the cost price of the items built or acquired with…

The remuneration provided for in article L. 225-45 du code de commerce allocated in respect of a financial year to members of the board of directors or supervisory board of sociétés anonymes is deductible from the corporation tax base within the limit of 5% of the product obtained by multiplying the average deductible remuneration allocated during that financial year to the highest paid employees of the company by the number…

I. – In limited liability companies that have not opted for the partnership tax regime under the conditions provided for in IV of Article 3 of Decree no. 55-594 of 20 May 1955 as amended and whose managers have a majority shareholding, in partnerships limited by shares, as well as in limited partnerships, general partnerships, joint ventures and civil partnerships that have exercised the option provided for in Article 206…

For the application of the provisions of the first paragraph of Article 3 of 39, relating to the deduction of lump-sum allowances that a company allocates to its directors or company executives for representation and travel expenses, directors mean, in partnerships and joint ventures that have opted for the capital company tax regime, the partners in name and the members of these companies, in limited liability companies which have not…

The provisions of article 39 quinquies only apply to industrial, commercial or agricultural companies.

I. – Interest on sums left with or made available to a company by an affiliated company, directly or indirectly, within the meaning of 12 of the article 39, are deductible : a) Within the limit of those calculated on the basis of the rate provided for in the first paragraph of 3° of 1 of the same Article 39 or, if they are higher, on the basis of the…

I. – The net financial charges borne by an undertaking which is not a member of a group, within the meaning of Articles 223 A or 223 A bis, are deductible from taxable income subject to corporation tax up to the higher of the following two amounts: 1° Three million euros; 2° 30% of its income determined under the conditions of II. The amount referred to in 1° of this…