Smart taxation for your transfers

A Hot Tip about Business Environment in France

Last updated: 26 Jan 2011

How to prepare the transfer so that it can be smart regarding its global taxation.

A smart taxation of your transfers COMPANY ACQUISITIONS, SALES, TRANSFERS Some good practices Taxation for Transfer Unequal fiscal impacts between parties Buyer Seller Capital gain Taxation of Registration/transfer fees increases in value 2 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. The Context of the Transfer Strategic interests and financial diverging Usufruct / bare ownership All or part of the shares The sale as a part of Open outlook for capital The acquisition as a part gaining immediate capital of the strategic context gains An activity branch External growth (identical M or different career)inimizing taxation on capital gains A Buyback project for the LT ssets : goodwill, brands, Op or MTtimizing management for money received (in business patents, tangible assets a ? Asset should generate a ssets or private net worth ?) future benefit 3 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Taxation for Transferring A considerable weight without preparation ? The assignor is a company Taxation of capital gain Quasi-exempt capital from sale for corporate gain income taxes (holding > 2 years) 15 % if PME or capital gain < 38 120 t 4 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Taxation for Transferring A considerable weight without preparation The assignor is an individual Taxing capital gain from Progressive discount sale if > 5 years : from 33% to 100% 18% + 12,1% t 5 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Minimized Global Tax Using a holding company for corporate income taxes Fiscal integration HOLDING (5% Dividends) - Interest dividends reimbursement -+ subsidiary income Taxable Deduce paid income interest from the taxable income 6 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Organizing for the departure of retirees Tax exemptions on capital gains in the context of retirement Individual companies and personal income tax corporations Consequences: Conditions : -> capital gains from sale and in certain -> exercised operations for at least 5 years capital gains, deferred tax exemptions -> sale of all activities -> submit to payroll taxes of 12,1 % -> sale of all shares or rights -> doesn?t concern real-estate items -> complete retirement rights -> maximum time period of 2 years between the beginning and the end of the operation 7 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Organizing for the departure of retirees Tax exemption on capital gains in the context of retirement PIT corporations: Immediate reduction application for the duration of the holding Conditions : Consequences: -> if society withholds PIT: European PME criteria -> capital gains from sale are -> exercised management for at least 5 years gradually exempt starting in the 5th -> sale of all activities year -> sale of all shares or rights (50% of voting rights -> payroll taxes at 12,1 % if majority) -> does not concern the -> all retirement rights management of one?s own real- -> maximum time period of 2 years before or estate after the sale 8 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Contradictory fiscal interests PIT corporation d i v i d e n d s PIT taxation Starting at 8 years of seniority : Seller : pays taxes on the paid dividends exemption of Buyer : does not buy cash capital gain 9 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Contradictory fiscal interests PIT corporation a Seller: Minimizes taxation on capital gainsSt rting at 8 years of sen Buyer : buys cashiority : complete exemption of capital gains 10 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Contradictory fiscal interests To obtain equilibrium : price negotiation Tax Price bene decreasefits During the asset conservation period, the change of taxation can challenge all or part of the planned optimization schema DESIGN A PROGRESSIVE SCHEMA IN TIME 11 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Retirement Transferring an employee Reduce capital by buying back titles Establish a seller-loan held by the corporation Distribution of dividends Time period relative to regulation Outside of range for exemption Respect the maximum time period 12 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Donating to One?s Children Concluding a fiscal agreement A conservation contract of a corporation?s shares or equity shares can be signed -> Industrial, commercial, traditional, free-market or agriculture operations -> At the time of donation or upon death 75% of fees transfer to free exempted securities (donation and succession) 75% of the value of securities are exempted from CIT -> management functions exercised by one of the signors of the contract -> own at least 34 % of the shares or equity shares of the corporation (20% if listed) -> more than 6 years and broke down and analyzed individual and group commitments The DUTREIL treaty with monetary compensation: targeting the transfer to one of the children 13 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. Donating to Children Dividing securities Donating bare ownership U p su fru n e r s h i ct Bare ownership exem Usu axab t t o v o t eD iv id fruct securities t le e pted n B a r e o w d up to 100% to CIT s R i g h from CIT 75% of fees transfer to Exempt up to 75% of the CIT free exempt securities basis 14 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. The Sale to a Third Party Dividing securities Sale of bare ownership U s h i p u fru e r s ct Capital gain from sale v o t e D w ivithin the family group id a r e o w n e B e nxempt under certain ds R i g h t t o conditions Bare ownership imposed Usufruct to correspond with CIT securities imposed by CIT to correspond with the usufruct law 15 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account .. The Optimal Transfer Prepare as much as possible for the transaction Optimizing the transfer while ? Defining and legalizing the strategy starting with the input ? Carrying out permanent support for fiscal regulations applicable for planned or executed schemas 16 * This presentations was established regarding applicable laws as of October 2010. Any further change will have to be taken in to account ..
Posted: 19 January 2011, last updated 26 January 2011

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JPA

JPA

Audit, Accountacy, Tax

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