15 June 2026
Transferring a small or medium-sized business in France can now benefit from greater tax certainty. Before gifting a business or shares, an owner-manager may ask the French tax authorities to approve the market value used to calculate gift tax. This advance valuation procedure is known as a “rescrit-valeur”.
No reply now means approval for SMEs
The tax authorities normally have six months to respond. Under the Act of 26 May 2026, where the request concerns a micro, small or medium-sized enterprise as defined by EU law, failure to reply within that period is treated as approval of the value proposed by the taxpayer.
This change reduces the uncertainty that could arise when the authorities remained silent. It does not remove the need for a complete and accurate application: all information required to assess the business’s market value must still be supplied in good faith.
What conditions must be met?
- the taxpayer must hold a management role in the relevant business;
- the company’s main activity must not be the management of its own movable or immovable assets;
- the request must be made before the gift and contain the information needed for a reliable valuation;
- the gift must be completed within three months of the express or deemed approval, using the accepted value.
The EU definition of an SME is based in particular on staff headcount, turnover and balance-sheet total. Before proceeding, eligibility and valuation should therefore be checked carefully with the notary and the client’s usual advisers.
Further information: Article L. 18 of the French Tax Procedures Code, the Act of 26 May 2026 and the EU definition of SMEs.
Photo: Masjid Pogung Dalangan / Unsplash.
Further reading : Pacte Dutreil: Six-Year Holding Period and Exclusion of Certain Luxury Assets.
The office does not contractually guarantee the accuracy or currency of this information. Please consult one of the office’s notaries to assess how it applies to your circumstances.
