A company that receives only royalties is eligible for the Dutreil Pact

A married couple had made a gift of shares in a company to their children and had taken advantage of the 75% tax exemption available under the Dutreil Pact.

Following a tax audit,administration this partial exemption. In particular, they argued that the requirement regarding the conduct of an industrial, commercial, craft, agricultural, or professional activity had not been met, since the company’s sole purpose was to collect royalties from the licensing of perfume brands.

However, in a ruling dated March 11, 2026, the Court of Cassation clarified that a company engages in commercial activity simply by virtue of being subject to the BIC regime provided for in Articles 34 and 35 of the General Tax Code.

In the specific case of the company whose securities were donated, the licensing of trademarks did indeed fall within the scope of this regime, andadministration thereforeadministration entitled to challenge the exemption.

The tax assessment is therefore rescinded.

Commercial Court of Cassation, March 11, 2026, No. 24-18.070, unpublished

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