France - New Limitations on the Deduction of Financial Expenses Related to Acquisitions
- E. Robert
- European Taxation, 2012 (Volume 52), No 5
- 11 April 2012
With effect from 1 January 2012, the 4th Finance Amendment Law for 2011 introduced a new limitation on the deduction of financial expenses related to acquisitions of participation shares, which applies where the acquisition price of a company exceeds EUR 1 million and the purchasing company fails to demonstrate that there is an autonomous decision-making centre in France. This note describes the new provision and comments on its compatibility with EU law.