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3.5. Tax Consequences of Acquisition or Loss of Tax Residence

Foreign companies whose tax residence is in France, and which are, therefore, liable to French corporate income tax, have to disclose their profits arising from enterprises operating in France.

In contrast, the loss of French tax residence leads to a cessation of activity. In the event of a cessation of activity occurring in the course of the fiscal year, the profits for the entire year become immediately taxable. All reserves and provisions must be included in the taxable income. All past transactions which have led to a temporary tax deferral must be regularized.