France: Tax-Efficient Sectors
Innovation Financing Companies (SFI)
"SFI" are French companies which finance and facilitate the industrial application of technological research and promote or exploit inventions already patented or about to be patented which could be exploited to generate completely new applications. Companies subscribing to the share capital of an SFI can set off 50% of the capital contribution as a tax-deductible depreciation. When those shares are sold capital gains tax is not payable on the proportion of the investment that has been depreciated. The law is set out in Article 39 of the General Tax Code.