Creation of single-shareholder venture capital companies (SUIR) exempt from corporate tax

Article 91 of the 2004 Finance Act creates Article 208 D of the General Tax Code. Single-shareholder simplified joint-stock companies held by an individual, whose sole purpose is to subscribe to the capital of unlisted companies less than five years old, are exempt from corporate income tax until the end of the tenth financial year following their creation. They must hold between 5% and 20% of the rights in the companies they finance; the shareholder and family must hold less than 25% of those companies and hold no management position there. Distributions paid out of exempt profits are, under conditions, exempt from income tax. The regime applies to SUIRs created from 1 January 2004.