Finance Act for 2022: Main [...]

Since a ruling of the French constitutional judge (« Conseil Constitutionnel ») of 2015, the shares repurchase followed by their cancellation in the framework of a capital reduction non-driven by company losses is treated as a capital gain on securities, which can allow some partners, who can take advantage of tax allowances in connection with the duration of detention, to benefit from a lower taxation compared to a dividend distribution.