Decision of the Council of State dated May 31, 2024, regarding Section 244 bis B

In a ruling issued today, in which the petitioner was represented by the firm, the Council of State held that Article 244 bis B—which provides for the taxation of capital gains on the sale of securities representing a substantial equity interest by a non-resident individual—is contrary to European Union law.

Indeed, the Council considers that applying a rate of 12.8% to non-resident individuals without allowing them to benefit, where more favorable, from the application of the income tax scale and from deductions based on the length of ownership (which can reduce the taxable capital gains base by 85%) violates the free movement of capital.

EC, 8th and 3rd Chambers, May 31, 2024, No. 489370, Unpublished