ARTICLE · 27 NOVEMBER 1995

Simplified Joint-Stock Company

SG Archibald Andersen

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FranceEmployment and HR

The law no94-1 dated January 3, 1995 created a new kind of commercial company: the simplified joint-stock company.

The legal characteristics of this company allow to compare it, for the application of the French General Tax Code ("Code General des Impots") and the Tax Procedures Book ("Livre des Procedures Fiscales"), to a French societe anonyme (limited liability company).

As a consequence, the provisions of article 119 ter of the French General Tax Code should be applied to simplified joint-stock companies.

Thus the withholding tax provided for by article 119 bis-2 of the above-mentioned Code cannot be applied to the dividends, which such a company, liable for corporate income tax without exemption from this tax, distributes to a legal person fulfilling the conditions mentioned in paragraphs 2 and 3 of article 119 ter.

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