1st Subsection: Determination of net profits or income for the various categories of income

1. The following are deemed to be distributed income: 1° All profits or income that is not placed in reserves or incorporated into capital; 2° All sums or securities made available to members, shareholders or unit holders and not deducted from profits. Taxable amounts are determined for each period used to calculate corporation tax by comparing the closing balance sheets for the said period and the previous period in accordance…

For the application of 1° of 1 of Article 109 profits are understood to be those that have been retained for the basis of assessment for corporation tax. However, these profits are increased by those that are legally exempt from said tax, including income deductible from net profit under I of Article 216, as well as profits made by the company in businesses operated outside France, less amounts paid in…

In particular, the following are considered as distributed income: a. In the absence of proof to the contrary, sums made available to members directly or through interposed persons or companies by way of advances, loans or deposits. Notwithstanding any provisions to the contrary, when these sums are repaid after 1 January 1960, to the legal entity that had paid them, the fraction of tax to which their allocation had given…

When a legal entity subject to corporation tax ceases to be subject to it, its profits and reserves, whether capitalised or not, are deemed to be distributed to the partners in proportion to their rights. This provision is applicable, where applicable, in proportion to the profits that cease to be subject to this tax. The provisions of this article do not apply to companies eligible for the regime provided for…

The conversion of a company that is not exempt from corporation tax into an open-ended investment company has the same tax consequences as the distribution of its liquidation surplus.