Do you want to acquire a business in France or create a subsidiary whose parent company is an overseas company ?
In both scenarios, you can benefit from favourable tax regimes.
The Invest in Bretagne team can introduce you to accountancy and legal firms to help you understand fully the mechanisms you can benefit from.
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It is worth drawing attention to certain eligibility criteria. Your company, a subsidiary of a foreign parent company, can benefit from the tax consolidation regime which allows:
- Global taxation of the company profits within the fiscal group (parent company + subsidiaries), i.e. a compensation between the profits realised by some companies and the deficits recorded by other companies of the same Group. As corporate tax (IS) is calculated on the profits after compensation, this regime allows the Group to make instant corporate tax (IS) savings.
- Allocation of tax credits generated by the companies within the scope of the corporate tax (IS) consolidation due by the Group.
- Exoneration of paid-out dividends within the tax group except for a portion of costs and charges.
- Certain intra-company operations between members of the Group are negated to determine the Group’s tax liability.
Company mergers as a rule result in significant tax liabilities. To facilitate these operations, companies can benefit from a beneficial regime that allows :
- Exemption of corporate tax (IS) on capital gains and provisions which retain their purpose.
- Taxation of company profits (except for transactions with retroactive effect from the fiscal period).
- Transfer of losses to the acquiring company subject to automatic approval, in compliance with certain conditions.
- The registration costs are generally limited to €375 or €500.
Please note that the application of this favourable regime is automatic and if all the conditions are not in place to avail of it, it can be obtained by an approval mechanism. This regime also applies to de-mergers and to the partial transfer of assets.
- Make a French start – 10 insights to grow your business in France – The French tax system – Business France – Mazars