6. What is the tax regime for the transfer of a patent by your company?

The long-term capital gains tax regime set out in article 39 terdecies 1 of Code général des impôts also applies to sales of patents and patentable inventions.

This regime applies to sales by all companies, whether subject to income tax or corporate income tax.

However, there must be an arm's length relationship between the transferor and transferee companies.

In addition, a disposal transaction is understood to mean any removal from a company's assets of the items in question, which broadens the scope of transactions concerned to include partnership contributions, exchanges, waivers of exclusive rights in return for compensation, divisions, gifts, outright withdrawal from assets,...