16 / 36
FOCUS ON
u
u
CAPITAL GAINS ON THE SALE OF SHAREHOLDINGS: ALMOST TOTALLY EXEMPT
Capital gains on the sale of shareholdings held for at least two years are totally exempt except for a 5% share corresponding to fees and
expenses.
A holding company realizes a net gain of €2,000,000 due to the sale of shareholdings held for at least two years.
Accounting profit:
€2,300,000
Non-accounting deduction of capital gains:
- €2,000,000
Non-accounting reinstatement of a proportionate share for fees and expenses (€2 M x 5% ):
+ €100,000
Taxable income:
+ €400,000
including €100,000 for the proportionate share of fees and expenses
Amount of corporate income tax ( 100,000 x 20%):
€80,000
of which corporate tax on capital gains: €20,000
u
u
THE REDISTRIBUTION OF EARNINGS IS FREE FROM WITHHOLDING TAX
The amounts distributed by the company do not incur the payment of any withholding tax, regardless of the beneficiary (legal entity or
individual person) and their residency or place of effective management.
16
BUSINESS TAXATION
DOING BUSINESS IN SAINT-MARTIN