Section 1: Calculation of the special profit-sharing reserve.

The special employee profit-sharing reserve is set up as follows: 1° The sums allocated to this special reserve are, after closure of the accounts for the financial year, calculated on the profit made in mainland France and in Guadeloupe, French Guiana, Martinique, Mayotte, La Réunion, Saint-Barthélemy and Saint-Martin, as used for income tax purposes or at the corporation tax rates provided for in the second paragraph and in b of…

The profit-sharing agreement may establish a profit-sharing scheme with a calculation basis and procedures different from those defined in Article L. 3324-1. This agreement does not dispense with the application of the rules defined in that article unless, in compliance with the principles laid down in this title, it provides at least equivalent benefits for employees. The basis of calculation may therefore be one third of net profit for tax…

In companies subject to income tax, the profit to be deducted, before deduction of the corresponding tax, is equal to the taxable profit for that financial year, less : 1° Normal remuneration for the work done by the company director, where such remuneration is not included in overheads for the purposes of calculating tax under ordinary law; 2° Losses recorded over the previous five years which have been set off…

A decree of the Conseil d’Etat shall determine the method of calculation, which may be flat-rate, of the income tax reduction provided for in article L. 3324-3.