Reduced corporate tax rate on gains from contributing buildings to a listed property company (Article 210 E)

Article 27 of the 2005 Finance Act creates Article 210 E of the General Tax Code. Net gains made by a company subject to corporate tax when it contributes a building, or rights under a property finance lease, to a publicly listed company whose main purpose is letting buildings are taxed at the reduced rate in Article 219 IV of the Code (16.5% at the time). The receiving company must undertake to keep the asset for five years, or pay a fine of 25% of the contribution value. The scheme applies to contributions made from 1 January 2005 to 31 December 2007.