Purchases – French FTT is based on the acquisition value of the French Equity (excluding transaction fees) set out in the contract resulting in the transfer of ownership to the buyer.The French FTT taxable basis is determined as follows: purchases of bonds that can be exchanged or converted into shares.įrench FTT on HFT does not either apply to transactions made in the context of "market making activities".repurchases by companies of their own shares for the purpose of reselling to employees holding a company savings plan.acquisitions by certain employee mutual funds and acquisitions by employees directly via their company savings plan of shares issued by their company or by a company of the same group.securities financing transactions such as securities lending, repos, buy-sell backs and sell-buy backs.
#Financial transaction tax code
233-3 of the French commercial code or Article 223 A of the French tax code and transfers of securities in the context of certain restructuring transactions (mergers, demergers and partial mergers subject to the favourable tax regimes, management buyouts and repurchases of securities for allocation to a company savings scheme)
transactions executed on behalf of issuers in order to promote the liquidity of their shares, in accordance with authorised market practices accepted by the French AMF pursuant to EU Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 and EU Directive 2004/72/EC of the EU Commission of 29 April 2004.acquisitions made in the context of "market making activities", noting that the law contains its own definition of the concept of "market making activities" for purposes of the FTT (see note 1).transactions by clearing houses and central depositaries in the course of their regulated business.transactions made in the context of an issue of new equity securities (i.e.The tax is due where the percentage of orders amended or cancelled within a trading day for a relevant security exceeds 80 per cent of the total orders entered for that security in that day.įrench FTT on Purchases does not apply to: A HFT transaction is deemed to occur where the decisions to order, modify or cancel trades are automatically generated by a computer algorithm and the interval between such decisions does not exceed half a second. high-frequency trading transactions (" HFT") carried out by companies operating in France where these transactions relate to shares or quasi-equity instruments and are executed on own account.in the recording of the French Equities into the securities account of the purchaser and The purchase must result in a transfer of ownership of the French Equities within the meaning of Article L 211-17 of the French Monetary and Financial Code, i.e. Transactions over certificates representing French Equities (such as American depositary receipts (ADR) or European depositary receipts (EDR)) or the physical settlement of derivatives having French Equities as underlying assets would fall within the scope. purchases for consideration (" Purchases") of equity securities (shares and quasi-equity instruments) admitted to trading on a regulated market and issued by French incorporated companies whose market capitalization is over EUR 1 billion as at 1st December of the preceding year (" French Equities").Transactions subject to (or potentially subject to) French FTT are:
This briefing provides an overview of the French financial transaction tax ("French FTT") applicable in France since 1st August 2012. Restructuring, Special Situations and Insolvency.Antitrust, Regulation and Foreign Investment.
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