Tax policy directorate – Bureau a

ter CGI are assessed at the rate in force the year these capital gains were realised. 
Claims from an earn-out clause 
Earn-outs received on or after 1 January 2013 are taxable under the progressive income tax scale in 
the tax year they are received, irrespective of the length of time between the date of the sale of the 
securities and the date the earn-out is paid. Claims from an earn-out clause are eligible for the ordinary 
or increased holding period allowances, as well as the fixed allowance where applicable, when the 
holding period condition is fulfilled as at the date of the disposal of the securities (BOI-RPPM-PVBMI-
20-20-20-10, section 80). The rates are those applied to the net capital gain on the disposal, or that 
would have been applied if the disposal had been eligible. 
Immediate taxation of cash equalisation payments received in exchange or contribution transactions  
During certain transactions involving the exchange or contribution of securities or assets, taking place 
as from 1 January 2017, subject to the stay on capital gains taxation (under Article 150-0 B CGI) or to 
deferred taxation (under Articles 150-0 B bis and 150-0 B ter CGI), and for which the taxpayer receives 
a cash equalisation payment, the capital gain is taxed for the year of the exchange or contribution 
transaction to the extent of the amount of the cash equalisation payment only (Article 32 of the 2016 
Supplementary Budget Act no. 2016-1918 of 29 December 2016).
 
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Bulletin Officiel des Finances Publiques-Impôts BOI-RPPM-PVBMI-20-10-40-20160411; Conseil d'Etat 
(joint chambers 3 and 8), judgment no. 390265 of 12 November 2015. 

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27 
Exit tax scheme 
Exit tax arrangements provide that taxpayers who were resident of France for tax purposes for at least 
six of the ten years prior to the transfer of their tax domicile outside France are taxed during this 
transfer for unrealised capital gains on securities, stocks and shares held directly or indirectly by 
members of their tax household on the transfer date. 
Transfers of tax domicile outside France, that have taken place since 1 January 2014,
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cause taxation 
of income tax and social levies: 
- 
On unrealised capital gains relating to a stake of at least 50% in the profits of a company held 
by the taxpayer and members of his tax household 
- 
On capital gains when assets in securities and shares exceed a total of €800,000 
Unrealised capital gains, deferred-tax capital gains and claims from an earn-out clause are all in 
principle taxed at the progressive income tax scale, after taking account (where applicable) of the 
allowances available for length of ownership for capital gains tax on securities pursuant to the general 
regime and the incentive regime. 
An automatic stay of payment, without the furnishing of guarantees, is granted if the taxpayer transfers 
his domicile for tax purposes to an EU Member State or to an EEA Member State, excluding 
Liechtenstein. If the domicile for tax purposes is transferred to a country other than those mentioned 
above, the stay may be granted, at the taxpayer's request, and in consideration of the guarantees that 
the taxpayer has to furnish before his departure.However, when the departure is justified on 
professional grounds, no guarantee is required for the stay of payment to be effective provided the new 
country of residence has signed an administrative assistance treaty with France to combat tax evasion 
and avoidance, as well as a mutual recovery assistance treaty whose scope is similar to that of 
Directive 2010/24/EU. An exhaustive list of the countries or territories concerned is given in BOI-ANNX-
000445. This list is updated annually in the Exit Tax filing notice no. 2074-ETD.