The Parent-Subsidiary regime

A tax option that sets up a tax exemption of 95% on dividend received

Tax rate :

  • However a fixed rate of the remaining is liable to the corporate income tax at standard rate (33%)
  • The effective taxation rate is limited to 1,67%

Requirements :

  • Parent company must be subject to corporate tax (standard rate)
  • Parent company must hold at least 5% (capital and voting rights) of it’s subsidiary during at least 2 years
  • Subsidiary must be subject to corporate tax

 

Exemption of the capital gains made on sale of shares

Tax advantage :

  • Tax exemption on the gains from the sale of equity shares. A fixed rate of 12% must be reintegrated to the taxable income
  • Effective taxation rate limited to 4%

Requirements :

  • The equity shares held must be at least 5% of the capital
  • The equity shares must have been owned for more than 2 years

Fabrice DELOUIS

Co-Founder & Partner - Taxation
Fabrice DELOUIS has been assisting his customers throughout their projects for the past twenty years.

He majored in tax law and obtained a DJCE (Diplôme de Juriste Conseil d’Entreprise/Business Law Consultant Degree). He also holds a Master of business and Tax Law.

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