Jeantet Alert – Tax : Claims for refund of the French capital gains taxes paid by foreign companies relating to substantial participation in a French company

 

WHO?

Foreign (i.e. Spanish, Italian, Austrian, Swedish, Icelandic, Maltese, Bulgarian, Hungarian, Cypriot, Luxembourg, Netherlands and non-EU members under certain conditions) companies and individuals that have paid French capital gains taxes pursuant to Article 244 bis B of the French Tax Code (including those which benefitted from a partial reimbursement based on the participation exemption regime) relating to substantial participation in a French company (excluding real estate companies).

WHY?

The French Administrative Supreme Court ruled on 14 October 2020 (Conseil d’Etat, decision n°421524, Sté AVM International Holding) that taxes paid by foreign resident companies or individuals on long-term capital gains relating to substantial participation in a French company (real estate companies excluded) pursuant to Article 244 bis B of the French tax Code (FTC) violate EU law (i.e. freedom of establishment and free movement of capital).

WHEN?
  • Claims must be filled :
    • For Tax payment made in 2018: before 31 December 2020
    • For Tax payment made in 2019: before 31 December 2021
    • For Tax payment made in 2020: before 31 December 2022

JEANTET could assist you to file a claim before the end of the year. You can contact one of our tax partners.

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