Amending Finance Law For 1994

Movable property leasing (Article 259A of the French General Tax Code)

Renting of tangible property and means of transport by means of a leasing contract is subject to French VAT when the recipient of the service is established in a EU member state where the lease is assimilated to a delivery and not a hire. This provision applies to rentals outstanding at 1 January 1995, with the exception of those relating to goods imported before 1 January 1993.

Securities exchange and conversion (Article 38-7 of the French General Tax Code)

The scope of the deferral of the taxation of capital gains arising on take-over bid when stock is exchanged for stock (OPE) and debt conversions has been enlarged. In future (for periods beginning on or after 1 January 1994) the following can benefit: share exchanges in respect of shares resulting from share stripping (non-voting preference shares...), conversion of ordinary shares into priority dividend shares (and vice-versa), debt repayment in