Legal entities that own real estate in France are subject to a tax of 3% on the value of their properties. This tax on the fair market value of real estate was introduced by the 1983 Finance Law with the objective of ensuring visibility of the chains of ownership of properties by French and foreign entities, allowing the identification of shareholders and thereby verifying the proper application of the Wealth Tax (ISF), now replaced by the Real Estate Wealth Tax (IFI).
If the metaverse is a real craze for tech companies and multinationals, this virtual world also raises many questions about the applicable legal and tax rules.
The OECD in its latest report (dated September 21, 2022) on the evaluation of tax policies revealed that many countries had increased́ the generositý of tax incentives for businesses in order to stimulate investment and innovation, particularly to promote environmental sustainabilitý. This continues with the case of France in the Finance Bill for 2023 allowing for the adaptation of certain schemes to promote the energy transition.
These tax incentives can result in the application of a tax reduction or credit.
Abuse of rights: the Conseil d’Etat validates an extensive conception of the notion of artificial arrangement
The Conseil d’Etat upheld the Versailles Administrative Court of Appeal’sdecision of April 1, 2021,No. 20VE002388 and 20VE002389, upholding the reassessments notified to Dassault Systèmes by the French tax authorities, in theConseil d’Etat’s decision of May 31, 2022, No. 453 175, Société Dassault Systèmes.