Free shares: regime extended to awards by a foreign parent or subsidiary, with an option for taxation as salary

Article 41 of the Act of 26 July 2005 on confidence in and modernisation of the economy extends the tax and social security regime for free shares (Article 80 quaterdecies of the General Tax Code) to awards made, under the same conditions, by a company headquartered abroad that is the parent or a subsidiary of the beneficiary's employer. It rewrites Article 200 A(6 bis): the acquisition gain is taxed at 30% unless the beneficiary opts for taxation under the rules for wages and salaries. Article L. 242-1 of the Social Security Code is amended accordingly. The provisions apply from 1 January 2005. The free-share regime, created by the 2005 Finance Act, was later overhauled several times.