A f o r m a l p r o c e d u r e

How are share gifts taxed?

Gifts may be subject to taxes after application of a

possible tax allowance. Tax amounts depend on the family

relationship with the benef iciaries. When payable, they are

usually paid by the benef iciary, but the donor can bear

their cost without increasing the value of the gift.

1

Shareholders who are tax residents in France must be aware that the information provided

is a summary of the rules applicable to them according to the current tax law and that

their specif ic situation will need to be examined with their tax advisor

N.B. in some cases,

a reduction may apply

(in particular for donations

to people with disabilities,

even where the donor and

benef iciary are unrelated).

A DONATION INTER-VIVOS

• Occasion: assets settlement before death

• Characteristics:

- It is an excellent way of rewarding your children in the long term

- Is recorded in an authentic deed signed before a notary,

and the donor can continue to receive the dividends on the assets

transferred

- Cannot be returned to the estate to be included in the inheritance

- May reduce inheritance taxes

A GIFT TO A SPOUSE

• Occasion: at any time

• Characteristics:

- Must be signed in the presence of a notary; its distinctive feature is

that it can be overturned (except if the gift was part of a marriage

contract), even without the other spouse’s consent

- It takes effect on the day of the donor’s death

A SIMPLE GIFT

Occasion at any time

Characteristics

Must be signed in the presence of a notary

Cannot be overturned save in exceptional cases

May be subject to specif ic clauses

OR

OR