0% rate on capital gains from selling equity holdings upon admission to an SME market

Article 3 of the Act of 26 July 2005 for confidence and modernisation of the economy subjects to separate taxation at 0% the net long-term capital gains on the sale of equity holdings made upon admission to trading on a financial market dedicated to SME financing, listed by order; a 5% share for costs and expenses remains taxable. The measure applies to sales made from 17 May 2005, the launch date of the Alternext market according to the Senate report, and ends for financial years beginning on or after 1 January 2007. The article was introduced on the Government's initiative.