Tax policy directorate – Bureau a

partnerships (sociétés civiles professionnelles, SCP) and property holding companies (sociétés civiles 
de placement immobilier, SCPI).
2 – Exemptions 
Furthermore, exemptions have been granted to certain legal entities that would theoretically be liable to 
corporation tax.
These include cooperative corporations, real estate investment trusts (sociétés d'investissements 
immobiliers cotées, SIIC), companies involved in regional development and housing construction, 
investment companies, joint venture investment trusts (sociétés de capital-risque, SCR), public-sector 
entities, non-profit organisations and trade unions, property companies and property management 
companies.
In addition, regions and entities formed between regions, départements and entities formed between 
départements, communes, government-funded institutions for intercommunal cooperation (EPCI) with 
powers of taxation, syndicates of communes and joint syndicates made up exclusively of local 
authorities or local authority groupings and their public service agencies, where the latter’s purpose is 
to operate or provide a service essential to the collective needs of the local authority’s inhabitants, are 
entirely exempt from corporation tax. 
C. TERRITORIALITY 
All EU countries except France tax worldwide profits. In France, however, only profits made by 
enterprises operated in France are liable to corporation tax, whatever their nationality. This means that 
profits made by a French company in enterprises operated in countries other than France are not liable 
to French corporation tax; likewise, a foreign company is liable to French corporation tax only on the 
profit made from enterprises it operates in France. 
Consequently, companies liable to tax in France may not deduct losses made by enterprises they 
operate in other countries from their taxable profit. 
The term “enterprise operated in France” means an enterprise which carries on a regular business in 
France, whether in an autonomous establishment or, if there is no establishment, through 
representatives without independent professional status, or as part of operations forming a complete 
business cycle. 
Note that these criteria apply only in cases in which no international tax treaty is in effect. 
Profits from property located in France and similar rights, and profits, the taxation of which is allocated 
to France by an international tax treaty, are also taxable in France. 
In addition, some profits are taxable in France even if the company is not domiciled in France for tax 
purposes. 
Capital gains on property realised by non-residents are taxed at a rate of 33
⅓
%. The tax is calculated 
on the basis of the corporation tax base and rate rules. Where applicable, the levy is set off against the 
amount of corporation tax owed in respect of the same capital gains and the surplus may, in some 
cases, be refunded.
Other profits on property
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made by legal entities based outside France are also taxed at a proportional 
33
⅓
% rate. Where applicable, the levy is set off against the amount of corporation tax owed in respect 
of the same profits and the surplus may, in some cases, be refunded. 
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These are profits made by property dealers; profits made by individuals on the sale of properties they have 
built or had built and of related property rights; and profits made by individuals who sell land divided into plots 
intended for development (Article 244 bis CGI). 

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