Exceptional release of profit-sharing awarded in 2005, until 31 December 2005

Article 39 of Act No. 2005-842 of 26 July 2005 allows employees to ask, until 31 December 2005, for direct payment or early release, in a single instalment, of amounts awarded in 2005 under statutory profit-sharing (participation). An agreement is required for amounts invested in company shares, company investment funds or certain collective funds, or exceeding the special profit-sharing reserve calculated under the statutory formula. Released amounts lose the income tax exemption and are taxed as salary (General Tax Code, Art. 158, 5, a). Rights allocated to a collective retirement savings plan (PERCO) are excluded.