France: Tax-Efficient Sectors
Patent Holding Company
Resident patent holding companies pay a reduced corporate income tax rate (instead of the standard rate) on income received from entities in respect of patents licensed for exploitation. This concession does not apply if either:
- The licensee is a resident French corporation which is associated with the licensor and which is subject to corporate income tax in France; or
- The patent was not developed but was acquired and market value was not paid for the acquisition; or
- Market value was paid for the acquisition but the acquisition took place less than 2 years ago.