해외 M&A의 ë²•ì  ìŸì  - Sullivan & Cromwell

1. Providing Equity Without Taking Control continued
Tax treatment of a Korean Investor
Equity instruments
- Dividends : 10% withholding tax if the shareholding exceeds 10% of the share capital (15%
withholding tax otherwise) + 3% levy
- Capital gains : 19% tax in France if the shareholding exceeds 25% of the share capital (not taxable
otherwise)
- Transfer taxes / Financial transaction tax (FTT) : 0.1% tax on transfers of non listed shares, no
transfer tax on listed shares except for the transfer of shares in French corporations with a market
capitalization exceeding €1Bn, which is subject to the 0.2% FTT.
Debt instruments
- Interest : no withholding tax
- Capital gains upon sale or conversion in equity instruments : not taxable in France
- Transfer taxes / FTT : not applicable
Hybrid instruments
- Certain instruments may be viewed as debt in a jurisdiction and equity in the other jurisdiction.
- This may result in favorable tax consequences as to the deduction of interest in France and the
withholding tax treatment of the cross-border flows.
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