TAX AND SOCIAL SECURITY REGIME Sample Clauses

TAX AND SOCIAL SECURITY REGIME. 1. The benefit gained by the beneficiary at the time the option is exercised (difference between the value of the shares when the option is exercised and the purchase price, hereinafter referred to as the "capital gain on the acquisition") is not taxed immediately and will only be subject to taxation at the time of the sale of the shares by the beneficiary of the purchase option. At this time, the "capital gain on the sale" equal to the difference between the actual selling price and the value of the share on the date the option is exercised will be subject to the regime governing capital gains on securities. In the current state of the legislation and in accordance with the combined provisions of Articles 92-B and B bis of the French Tax Code (CGI), this capital gain will only be subject to income tax (at the proportional rate of 16% increased by the social deduction of 2%, the CSG at the current rate of 7.5% and the CRDS at the current rate of 0.5%, i.e., a total deduction of 26%), in the event that the amount of the sales made by the beneficiary of the option plan exceeds an annual ceiling (fixed at FF 100,000 for 1997). To assess this taxation threshold, all of the sales of shares, whether they are listed or unlisted (other than those of partnerships and companies in which the transferor holds more than 25% of the shares) made by the tax household during the year concerned must be taken into account. The "capital gain on the acquisition" which had not been taxed at the time the option was exercised is, subject to reaching the capital gains taxation threshold, taxed at the time of the sale of the shares at the rate of 30% (increased by the social deduction of 2%, the CSG at the current rate of 7.5% and the CRDS at the current rate of 0.5%, i.e., a total deduction of 40%), if, in accordance with the provisions of Article 163-bis C of the CGI, the two following conditions have been met: - the shares acquired upon exercise of the option remained in registered form, 15 - the period between the award date of the options and the date of sale of the shares is more than five years. The beneficiary may also, in this case, opt to have the "capital gain on the acquisition" taxed for income tax for the year of the sale of the shares, in the category of wages and salaries (without applying the system of the quotient). If the beneficiary does not respect one of the two above-mentioned conditions, the "capital gain on the acquisition", reduced however, by the amount o...
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TAX AND SOCIAL SECURITY REGIME. Unless provided otherwise by international financial instruments, family members will subject to the tax and social security regime prevailing in the receiving State in matters connected the performance of their gainful employment in that State.

Related to TAX AND SOCIAL SECURITY REGIME

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