On the other hand, savings by shares, allowing, under certain conditions, to capitalize dividends and capital gains in all tax exemption, has logically acquired an extremely incentive character in the eyes of any investor, and the attraction for such a mechanism could to grow further, while the savings capacity per taxpayer has just increased from 132,000 to 225,000 euros.<\/span><\/p>\n Entered into force, the decree taken for the application of article 70 of the finance law for 2014 indeed raises the ceiling of the payments made on a savings plan in actions, known as PEA, to 150,000 euros, and especially , this is the sign of the effective appearance in France of a new category of devices of this nature, specially intended for the financing of small and medium-sized enterprises (SMEs) and medium-sized enterprises (ETIs).<\/span><\/p>\n As a reminder, the law of December 29, 2013 led to the insertion, at the beginning of the year, of new provisions on savings products within the Monetary and Financial Code, in addition to those, already existing, devoted to the stock savings.\u00a0, and written in very similar terms.<\/span><\/p>\n <\/p>\n More specifically, the first paragraph of article L221-32-1, opening section 6 bis of the chapter devoted to \u201cgeneral savings products subject to a special tax regime\u201d, now lays down the principle that:<\/span><\/p>\n “Taxpayers whose tax domicile is located in France can open a stock savings plan intended to finance small and medium-sized enterprises and mid-cap companies with a credit institution, the Caisse des d\u00e9p\u00f4ts et consignations, the Banque de France, the Postal Bank, an investment company or an insurance company subject to the insurance code.\u00a0\u201d<\/span><\/p>\n In principle, likely to be associated with a traditional PEA by a single investor, the \u201cPEA PME-ETI\u201d has a legal framework identical to that governing its pre-existing counterpart with regard to the conditions of total exemption.\u00a0the net gain realized thanks to the investments, so that:<\/span><\/p>\n \u2013 The granting of tax benefits is subject to the absence of deductions for a period of five years from the first payment;<\/span><\/p>\n \u2013 Withdrawals cannot take place without entailing the closure of the plan until the expiry of a period of eight years from the first payment.<\/span><\/p>\n Logically, however, this is only intended to accommodate the titles of a company which, “on the one hand, employs less than 5,000 people and which, on the other hand, has a turnover not exceeding 1,500 million euros or a total balance sheet not exceeding 2,000 million euros\u201d.\u00a0The payment ceiling also appears more limited, since it has been set at 75,000 euros.<\/span><\/p>\n Only a few weeks after its implementation, the system seems to have a promising future, since it has resulted in net inflows having already exceeded 220 million euros, i.e. approximately one third of the net inflows of focused funds on French small and mid caps for the whole of 2013.<\/span><\/p>\n Obviously, such information should, in our view, cause a little joy among many entrepreneurs as well as among many taxpayers, within a State \u2013 is it still necessary to recall it \u2013 whose economic fabric is essentially made up of structures small in size and where taxation now disproportionately hits most middle-class incomes.<\/span><\/p>\n Such beginnings are moreover all the more worthy of praise in that it was doubtless possible to doubt the mechanism’s potential for success until recently, owing to the government’s commission of a major blunder leading to a real regulatory defect.<\/span><\/p>\n Indeed, the question of the concrete determination of the eligible companies initially appeared to be the trickiest, essentially because the principle according to which such eligibility must be assessed at the level of the group, where one exists, is based on several\u00a0\u00a0<\/span><\/span>of\u00a0<\/span><\/span>\u00a0the texts presenting an extremely technical formulation, and implies here to obtain information relating to structures whose accounts are not always the subject of a publication.<\/span><\/span><\/p>\n Fortunately, in order to clarify the situation, Bercy quickly invited the companies concerned to make their eligibility known, before the MEDEF and the Paris Stock Exchange did the same.<\/span><\/p>\n <\/p>\n To date, no less than 250 firms have answered the call, and we can only hope that the trend will continue in the months to come.<\/span><\/p>\nOvercoming Regulatory Challenges: Paving the Way for Eligible Businesses:-<\/span><\/h2>\n