Exempt Property
LexInter | November 28, 2002 | 0 Comments

Exempt Property

   The exemptions provided for in matters of transfer tax due to death by articles 787 B and 787 C, 1 and 3º, 4º, 5º, 6º and 7º of 2 of article 793 and by articles 795 A and 1135 bis ne are not applicable to the solidarity tax on wealth.
However, the provisions of 3 ° of 1 of the same article relating to interest shares held in a forest grouping are applicable when these shares are representative of contributions made up of goods mentioned in said 3 °.

   Property leased on a long-term basis under the conditions provided for in Articles L. 416-1 to L. 416-6, L. 416-8 and L. 416-9 of the Rural Code and those given on a transferable lease under the conditions provided by articles L. 418-1 to L. 418-5 of the same code, which are not fully qualified as professional property in application of article 885 P, are exempt from solidarity tax on wealth up to the amount of three quarters when the total value of the goods rented regardless of the number of leases does not exceed 76,000 euros and half beyond this limit, provided that the duration of the lease is at least eighteen years and that the descendants of the lessee are not contractually deprived of the right to benefit from the provisions of article L. 411-35 of the rural code.

Under the conditions provided for in 4 ° of 1 of article 793, the shares of agricultural land groups and agricultural land groups, subject to the provisions of the law complementary to the law of agricultural orientation n ° 62-933 of August 8, 1962 and of the law n ° 70-1299 of December 31, 1970 relating to agricultural land groups, which are not entirely qualified as professional property in application of article 885 Q are, provided that these shares are representative of contributions constituted by buildings or property rights for agricultural purposes and that the long-term or transferable leases granted by the group meet the conditions provided for in the third paragraph, exempt up to three quarters, if the total value of the shares held does notnot exceed 76,000 euros and half beyond this limit.


Article 885 I

(Law n ° 81-1160 of December 30, 1981 art. 3 Official Journal of December 31, 1981 in force on JANUARY 1, 1982) (Law n ° 82-540 of June 28, 1982 art. 12 Official Journal of June 29, 1982) (law n ° 86 -824 of July 11, 1986 art. 24 corrective finances for 1986 Official Journal of July 12, 1986 in force on January 1, 1987) (Law nº 88-1149 of December 23, 1988 art. 26 I, III finances for 1989 Official Journal of December 28 1988) (Law nº 95-1346 of December 30, 1995 art. 6 II finances for 1996, Official Journal of December 31, 1995) (Law nº 99-1172 of December 30, 1999 art. 29 finances for 2000 Official Journal of December 31, 1999)


The objects of antiquity, art or collectibles are not included in the tax bases to the solidarity tax on wealth. Industrial property rights are not included in the tax base for the solidarity tax on the fortune of their inventor.
This exemption also applies to shares in civil companies mentioned in the third paragraph of article 795 A up to the fraction of the value of the shares representing objects of antiquity, art or collection.
Literary and artistic property rights are not included in the tax base for the solidarity tax on the wealth of their author. This exemption also applies to the rights of performers, producers of phonograms and producers of videograms.

Article 885 Ia

(inserted by Law n ° 2003-721 of August 1, 2003 art. 47 Official Journal of August 5, 2003)

The shares or shares of a company having an industrial, commercial, craft, agricultural or liberal activity are not included in the tax bases for the solidarity tax on wealth, up to half of their value if the following conditions are met:
a. The units or shares mentioned above must be the subject of a collective retention commitment made by the owner, for him and his successors free of charge with other partners;
b. The collective retention commitment must relate to at least 20% of the financial rights and voting rights attached to the securities issued by the company if they are admitted to trading on a regulated market or, failing this,
These percentages must be respected throughout the duration of the collective retention commitment, which may not be less than six years. The partners of the collective conservation commitment can make transfers or donations of the securities subject to the commitment among themselves.

The initial duration of the collective retention commitment can be automatically extended by express provision, or modified by amendment, without being able to be less than six years. The denunciation of the renewal must be notified to the administration in order to be enforceable against it.
The collective conservation commitment is enforceable against the administration from the date of registration of the deed which establishes it. In the case of securities admitted to trading on a regulated market, the collective retention commitment is subject to the provisions of Article L. 233-11 of the Commercial Code.
For the calculation of the percentages provided for in the first paragraph, account shall be taken of the securities held by a company directly owning a stake in the company whose units or shares are the subject of the collective retention commitment referred to in a and to which it has subscribed. The value of the securities of this company benefits from the partial exemption provided for in the first paragraph in proportion to the real value of its gross assets which corresponds to the participation which was the subject of the collective retention commitment.

The exemption also applies when the company directly owned by the taxpayer has a stake in a company which holds the securities of the company whose units or shares are subject to the retention commitment.
In this case, the partial exemption is applied to the value of the securities of the company held directly by the taxpayer, within the limit of the fraction of the real value of the gross assets of the latter representative of the value of the participation. indirect having been the subject of a retention commitment.
The benefit of the partial exemption is subject to the condition that the participations are kept unchanged at each level of intervention throughout the duration of the collective commitment;
vs. One of the partners mentioned in a actually exercises in the company whose units or shares are the subject of the collective retention commitment his main professional activity if it is a partnership referred to in Articles 8 and 8 ter, or one of the functions listed in 1 ° of article 885 Oa when this is subject to corporation tax, as of right or on option;

d. The declaration referred to in article 885 W must be supported by a certificate from the company whose units or shares are the subject of the collective retention commitment certifying that the conditions provided for in a and b have been fulfilled in the year. preceding the one under which the declaration is made;
e. In the event of non-compliance with the condition provided for in a by one of the signatories, the exemption shall not be called into question with regard to the other signatories, since they keep their securities among themselves until initially planned and that the condition provided for in b remains met. In the event that this last condition is not respected, the exemption for the current year and those preceding the termination is not called into question for the other signatories if they conclude, within a period of one year , a new collective retention commitment, including at least the securities subject to the previous commitment, possibly with one or more other partners, under the conditions provided for in a and b.

In the event of non-compliance with the conditions provided for in a or b following a merger or demerger within the meaning of article 817 A or a capital increase, the partial exemption granted under l The current year and those preceding these operations is not called into question if the signatories respect the commitment provided for in a until its end. Securities received as consideration for a merger or a demerger must be kept until the same term. This exemption is not called into question either when the condition provided for in b is not respected following a cancellation of the securities due to losses or judicial liquidation.
Beyond the six-year period, the partial exemption granted for the current one-year period in the event of non-compliance with one of the conditions provided for in a or b is only called into question.
A Council of State decree determines the terms of application of this article, in particular the reporting obligations incumbent on taxpayers and companies.

Article 885 Ib

(inserted by Law n ° 2003-721 of August 1, 2003 art. 48 Official Journal of August 5, 2003)

I. – Securities received by the taxpayer in return for his subscription to the capital, in cash or in kind by contribution of goods necessary for the exercise of the activity, with the exception of real estate assets and transferable securities, are exempted. of a company meeting the definition of small and medium-sized enterprises in Annex I to Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid for small and medium-sized enterprises if the following conditions are met on January 1 of the tax year:
at. The company exercises exclusively an industrial, commercial, craft, agricultural or liberal activity, with the exclusion of the activities of management of movable assets defined in article 885 O quater, and in particular those of investment institutions in transferable securities, and activities management or rental of buildings;
b. The company has its place of effective management in a Member State of the European Community.
II. – A decree sets the reporting obligations incumbent on taxpayers and companies.

NOTE: These provisions apply to subscriptions made from August 5, 2003.


Article 885j
 
(Law nº 81-1160 of December 30, 1981 art. 3 Official Journal of December 31, 1981 in force on JANUARY 1, 1982) (law nº 86-824 of July 11, 1986 art. 24 amending finance for 1986 Official Journal of July 12, 1986 in in force on January 1, 1987) (Law nº 88-1149 of December 23, 1988 art. 26 I finances for 1989 Official Journal of December 28, 1988) (Law nº 2004-1484 of December 30, 2004 art. 18 finances for 2005 Official Journal of December 31 December 2004) (Decree n ° 2005-330 of April 6, 2005 art. 1 Official Journal of April 8, 2005)

The capitalization value of life annuities constituted within the framework of a professional activity or of a popular retirement savings plan created by law n ° 2003-775 of August 21, 2003 on pension reform, through the payment of regularly staggered premiums in their amount and their frequency for a period of at least fifteen years and the entry into force of which takes place from the date of the payment of the pension of the person liable for payment in a compulsory old-age insurance scheme or at the fixed age pursuant to article L. 351-1 of the social security code, does not enter into the calculation of the tax base. The exemption benefits the subscriber and his spouse.

Article 885k

(Law nº 81-1160 of December 30, 1981 art. 5 II Official Journal of December 31, 1981 date of entry into force JANUARY 1, 1982) (law nº 86-824 of July 11, 1986 art. 24 amending finance for 1986 Official Journal of July 12, 1986 in force on January 1, 1987) (Law nº 88-1149 of December 23, 1988 art. 26 I finances for 1989 Official Journal of December 28, 1988) (Law nº 96-314 of April 12, 1996 art. 18 I Official Journal of April 13, 1996)
   Annuities or indemnities received in compensation for bodily injury linked to an accident or illness are excluded from the assets of the beneficiaries.

Article 885l
 
(Law nº 81-1160 of December 30, 1981 art. 5 V Official Journal of December 31, 1981 date of entry into force JANUARY 1, 1982) (Law nº 82-540 of June 28, 1982 art. 28 Official Journal of June 29, 1982) (Law nº 86-824 of July 11, 1986 art. 24 corrective finances for 1986 Official Journal of July 12, 1986 in force on January 1, 1987) (Law nº 88-1149 of December 23, 1988 art. 26 I finances for 1989 Official Journal of December 28, 1988) (Law nº 89-935 of December 29, 1989 art. 10 III finances for 1990 Official Journal of December 30, 1989) (Law nº 98-1266 of December 30, 1998 art. 23 II finances for 1999 Official Journal of December 31 1998)
Individuals who do not have their tax domicile in France are not taxable on their financial investments.
Shares or shares held by these persons in a company or legal person whose assets mainly consist of buildings or real estate rights located on French territory are not considered as financial investments, in proportion to the value of these assets in relation to the total assets of the company. The same applies to shares, shares or rights held by these persons in legal persons or organizations mentioned in the second paragraph of 2 ° of article 750 ter.

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