I. What is a tax FPCI?
A tax FPCI is a FPCI which complies with tax quota constraints and allows an investor to benefit from reduced taxation when he realized a capital gain on the sale of his units in the FPCI. To benefit from these reduced taxes, he must have kept his shares for at least 5 years.
As a reminder, an FPCI (Professional Capital Investment Fund) is an investment vehicle that allows well-informed investors to invest in mainly unlisted companies. It must invest at least 50% of its assets in unlisted companies. The minimum ticket to invest in an FPCI is €100.
II. What are the conditions for an FPCI to be said to be fiscal?
To be considered as a tax FPCI, the FPCI must meet two conditions:
- The FPCI must invest at least 50% of its assets in companies having their registered office in the European Union, or in another State or territory that has signed an agreement with France to combat fraud and tax evasion.
- This 50% quota can be invested in one of two ways:
– Entirely in unlisted companies.
– At least 30% in unlisted companies. Up to 20% in listed companies with a market capitalization of less than €150 million, or in the debt of unlisted companies.
III. What are the tax advantages conferred by a tax FPCI?
A tax FPCI allows its investors to benefit tax benefits when they realize a capital gain on the sale of their units in the FPCI.
Two scenarios must be distinguished, depending on the identity of the investor:
1. The investor is a natural person
If the investor is a natural person and subject to the conditions listed in point IV below, the capital gain realized on the sale of the shares may be exempt from income tax. However, social security contributions of 17,2% remain due.
2. The investor is a legal person
If the investor is a legal person and subject to the conditions listed in point IV below, the rate of withholding of corporation tax on the capital gain realized on the sale of the units of the FPCI could pass from 25% to 15%.
IV. What are the conditions for an investor to benefit from the reduced taxation of a fiscal FPCI?
For an investor to benefit from the reduced taxation of a fiscal FPCI, he must meet three conditions:
- The investor must take the commitment to hold the units of the FPCI for at least 5 years.
- The dividends he should have received must be reinvested in the FPCI.
- The investor or a member of his family must not have directly or indirectly held:
– An amount greater than 10% of the units of the tax FPCI concerned
ou
– At least 25% of the shares of one of the companies in which the fiscal FPCI has invested over the last 5 years.
All of NextStage AM's FPCIs are fiscal FPCIs. Our investment fund FPCI NextStage Capital Entrepreneur II is in particular a tax FPCI eligible for the device 150-0 b ter. If you want more information about our investment solutions, contact us.
NB : the above description is not exhaustive and does not constitute investment advice. Before making any investment decision and in order to properly assess the tax deferral and potential exemption regime as well as the risks involved, it is recommended that you consult your usual legal, tax or financial adviser or contact the company management for more information.
V. Frequently Asked Questions
1. What are the differences between a classic FPCI and a tax FPCI?
The tax FPCI is un FPCI which respects the constraints of the tax quota and which allows so an investor to benefit from reduced taxation when he sells his units in the FPCI. To qualify as fiscal, an FPCI must meet certain specific conditions.
2. What conditions must an FPCI meet to be said to be taxable?
To qualify as fiscal, an FPCI must invest 50% of its assets in European companies. This 50% quota must be invested in unlisted companies, in listed companies not exceeding 150 million in market capitalization or in claims of unlisted companies.
3. Who can invest in a tax FPCI?
It is possible to invest in a tax FPCI for any well-informed investor able to invest a minimum ticket of €100.
4. Why invest in a tax FPCI?
We can identify three main advantages of investing in a tax FPCI:
- Tax FPCIs are clearly less subject to the permanent fluctuations of the listed market.
- Their taxation is advantageous.
- They are one excellent diversification tool.
