Ruling regarding the amendment of Articles 119 bis and 119 bis A of the General Tax Code by the Finance Act
Last Thursday,administration issued an administrative ruling regarding the introduction, through the latest Finance Act, of the concept of “beneficial owner” in Article 119 bis of the General Tax Code and the amendment to Article 119 bis A.
The ruling addresses the following topics:
the relationship between the provisions of Article 119 bis(2) of the General Tax Code and Article 119 bis A of the General Tax Code
the application of the provisions of Article 119 bis A of the General Tax Code:
in the absence of dividend distributions during the period in which the transactions take place
non-linear financial products
transactions executed on a regulated market
transactions involving recognized financial indices or indices that are not composed primarily of French stocks
transactions entered into for the purpose of hedging short sales
the continuation of withholding tax exemptions for investment funds and sovereign wealth funds
the tax base for withholding tax when the new provisions of Article 119 bis A of the General Tax Code apply
the scope of the provisions of Section II of Article 119 bis A of the General Tax Code, which is scheduled to take effect on January 1, 2026
the entry into force of the new provisions of Article 119 bis A(I) of the General Tax Code
On a related note, the Council of State issued its public opinion on the draft finance bill on January 30 (see the news item on the firm’s website).