Key Benefits:
Publics concerned: companies and individuals who benefit from securities options.
Purpose: Obligations relating to subscription or stock purchase options.
Entry into force: the text comes into force on the day after its publication. It applies to declarations made on or after January 1, 2013 relating to the lifting of securities options made on or after January 1, 2012.
Notice: the Order sets out the reporting obligations to the companies and beneficiaries of securities options provided for in section 91 bis of Schedule II to the General Tax Code for securities options raised as of January 1, 2012. Ad hoc amendments are made to the existing rules to take into account legislative developments. In addition, the information of the tax administration by the company will now be provided, with exceptions, through the annual statement of wages (DADS), which will allow for the dematerialization of trade and facilitate the monitoring of the device. For options raised prior to January 1, 2012, existing reporting obligations are not amended.
A simple decree also determines the new information on the securities options that will be declared on the DADS and sets similar reporting obligations for free shares and subscription vouchers from corporate creators (BSPCE).
References: This decree is taken for the application of theArticle 57 of Act No. 2010-1658 of 29 December 2010 for 2010
Appendix II to the General Tax Code, as amended by this Order, is available at the Légifrance website (http://www.legifrance.gouv.fr).
The Prime Minister,
On the report of the Minister of Economy, Finance and Industry and the Minister of Budget, Public Accounts and State Reform, spokesperson for the Government,
Vu le Trade codeincluding articles L. 225-177 to L. 225-186;
Vu le General Tax Codeincluding articles 80 bis, 87, 163 bis C, 182 A ter, 200 A, 1649 quater B ter, its annex II and its annex III;
The State Council (Finance Section) heard,
Decrete:
Section 91 bis of Schedule II to the General Tax Code is replaced by the following provisions:
"Art. 91 bis.-I. ― 1° Recipients of assigned securities options under the conditions specified in I of Article 163 bis C of the General Tax Code join their subscribed income tax return for the election year an individual statement issued by the company or company referred to in 2° no later than March 1 of the filing year of the return.
"This state mentions:
“(a) The object for which it is established: application of theArticle 163 bis C of the General Tax Code ;
“(b) The social reason and the head office of the securities-producing company and, where applicable, that of the company that establishes the state;
"(c) The identity and address of the recipient;
"(d) The number, price of subscription or purchase and the value of the shares acquired on the date of the lifting of the options;
“e) The fraction of the French source option lift gain;
“(f) Dates of attribution and removal of options;
“(g) When provisions of Article 80 bis of the General Tax Code find to apply, the amount of the difference defined in this section.
"Citizens who transmit the return of their revenues electronically, pursuant toarticle 1649 quater B ter of the General Tax Code, are exempt from attaching this statement. They must keep it until the recovery period expires and submit it to the administration on request.
« 2° The issuing company that has its head office in France and in which the holder of the securities options operates its business or the company referred to in the III of Article 80 bis of the General Tax Code transmits to the tax administration, in the declaration provided for in section 87 of the same code, the information referred to in paragraph i of section 39 of Schedule III audit code.
"When the licensee operates in a business different from the corporation or business referred to in the preceding paragraph at the time of the options being lifted, that information shall be transmitted, in the same manner, by the undertaking in which it operates when it has the necessary information.
"In other cases, the issuing company or the company referred to in the first paragraph addresses the tax service to which it reports, no later than March 1 of the year following the one in which the options were lifted, a duplicate of the individual state referred to in the 1st.
« 3° Where shares derived from the securities options are entered on a securities account that is not held by the company or company mentioned in the 2°, the company shall communicate, at the latest on March 1 of the year following that of the withdrawal of the options, either at the time of the assignment of the securities when it intervenes before that date, a copy of the statement provided in the 1° to the institution responsible for the holding of the securities that is liablearticle 182 A ter of the general tax code.
"In the event of the transfer of securities to another account, the establishment referred to in the preceding paragraph shall transmit a copy of the duplicate to the new detainee at the source.
« II. ― 1° In case of a holder conversion, lease or assignment before the end of the unavailability period provided for in the I of Article 163 bis C of the General Tax Code, the company or company referred to in 2° of I of this article shall address to the service of the taxes to which it reports, no later than 1 March of the year following that during which the operation took place, an individual state which mentions the date and nature of the operation, the number of shares concerned, the information referred to in b to g of 1° I and, where applicable, the occurrence of an event scheduled.
"It shall provide a copy of this condition to the holder of the options and, if any, to the establishment referred to in 3° of I.
« 2° In case of exchange without relief of actions resulting from an operation mentioned to the I bis of Article 163 bis C of the General Tax Code, the company or company referred to in 2° of I of this article shall address to the service of the taxes to which it reports, no later than 1 March of the year following that during which the operation took place, an individual state which mentions the date and nature of the operation, the number of shares received in exchange, the social reason and the address of the company whose shares are returned in exchange as well as the information mentioned in the b.
"It shall transmit a copy of this condition to the holder of the options and, if any, to the establishment referred to in 3° of I."
Section 1 applies to statements made on or after January 1, 2013 relating to securities options raised as of January 1, 2012.
The Minister of Economy, Finance and Industry and the Minister of Budget, Public Accounts and State Reform, spokesman of the Government, are responsible, each with regard to it, for the execution of this decree, which will be published in the Official Journal of the French Republic.
Done on 30 January 2012.
François Fillon
By the Prime Minister:
Minister of Economy,
finance and industry,
François Baroin
Minister of Budget, Public Accounts
and state reform,
Government spokesperson,
Valérie Pécresse
