Further to the EU Directive dated 8 July 2014, the French participation exemption regime has been amended but such amendment has been partially censored by the Constitutional Council. The unexpected outcome is that dividends distributed by SIIC and SPPICAV to French companies, which were taxable without the possibility to apply the French participation exemption regime, become eligible to that regime subject to the respect of its main conditions (mainly, shareholding booked as fixed asset during at least 2 years and representing at least 5% of the share capital). This may also be applicable to distributions received from foreign companies having a similar regime to the SIIC and SPPICAV. It has however to be outlined that this possibility should not last for a while and that the text is very likely to be reinstated. In the meantime, there is an open slot.
Entry into force: applicable to FY open as from 1stJanuary 2015