France long-term losses on equity participations 2026: niche Copé, IS regime, plus-value/moins-value symmetry
France IS tax regime 2026 for long-term losses on equity participations: niche Copé, 12% recharge, symmetric treatment with gains, articulation with accounting impairment.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Updated on 13 May 2026.
The "niche Copé" — nickname for the exemption regime on long-term gains on equity participations established by CGI Article 219 I a quinquies — is one of the most powerful tax benefits available to French groups. A disposal gain can be taxed at an effective rate of 3% instead of 25%. But there is a flip side: by symmetry, long-term losses on these same shares are not deductible from the standard-rate taxable income.
This article strictly targets the IS tax angle. For the accounting and IFRS methodology of asset impairment (IAS 36), see our impairment test article.
Executive summary#
- Long-term gains: exempt from IS subject to a 12% recharge taxed at 25% = 3% effective rate.
- Long-term losses: not deductible at standard rate, imputable on future long-term gains for 10 years.
- Conditions: shares held ≥ 2 years + qualified as "equity participations".
- Geographic scope: France + EU + treaty states; excluded: ETNC.
- Fundamental distinction: accounting impairment ≠ tax loss realised on disposal.
1. The equity participation regime#
Tax definition#
Equity participations (CGI Art. 39 quindecies I-1 a) include:
- Shares ≥ 5% of capital (automatic presumption).
- Shares qualifying for the parent-subsidiary regime (CGI Art. 145).
- Shares received in exchange for partial contributions of assets.
- Accounting-qualified participations.
Excluded#
- Investment shares (short-term).
- UCITS, FCP, SICAV (except specific cases).
- Unlisted SPIs.
- Shares in ETNCs.
- Shares held for speculative purposes.
2. The niche Copé mechanism (gains)#
Effective IS calculation#
| Step | Calculation |
|---|---|
| Gross long-term gain | €1,000,000 |
| Taxable recharge (12%) | €120,000 |
| IS on recharge (25%) | €30,000 |
| Effective tax rate | 3% |
Holding condition#
Shares must be held for ≥ 2 years from balance sheet entry.
Our expert view#
The niche Copé is extraordinarily favourable — but symmetry plays in the opposite direction too. An investor realising +€20M in gains and −€15M in losses will pay about €600k IS on the +€20M — but the −€15M brings nothing fiscally (except future long-term gains within 10 years). The fiscal "net" is very different from the economic "net".
3. Long-term loss symmetry#
Principle#
Net long-term losses on equity participations held ≥ 2 years:
- are not deductible from standard-rate (25%) taxable income,
- are imputable only on net long-term gains of the year or the 10 following years.
Comparative worked example#
French holding: 2026 disposal of two participations held > 2 years.
| Disposal | Gain/Loss | Tax regime |
|---|---|---|
| Participation A (B2B SaaS) | +€800,000 | Niche Copé: recharge 12% × 25% = €24,000 IS |
| Participation B (e-commerce) | −€300,000 | Non-deductible, imputable on future LT gains |
Net overall: +€500,000 economic gain, but €24,000 IS solely on disposal A. The €300,000 loss remains "blocked" until a future long-term gain within 10 years.
4. Articulation with accounting impairment#
| Plan | When | IS tax effect |
|---|---|---|
| Accounting (PCG) | Annual test Art. 214 ANC | NEUTRAL until disposal |
| Tax (CGI) | At effective disposal | Long-term gain or loss recognised |
Practical consequence#
A provision for accounting impairment can be:
- Reversed without impact at disposal if shares recover.
- Not confirmed by fiscal loss if disposal price exceeds the original tax value.
- Converted into a real long-term fiscal loss only at effective disposal.
For IAS 36 methodology, see our dedicated article IAS 36 Impairment Test 2026.
5. Special case — Foreign subsidiaries#
Standard application#
Subject to:
- Standard conditions (duration ≥ 2 years, participation qualification).
- Non-establishment in an ETNC (CGI Art. 238-0 A).
ETNC special case#
If subsidiary is in an ETNC, disposal taxed at 25% without niche Copé.
Bilateral tax treaty#
A treaty may modulate the treatment.
6. Long-term loss management strategy#
Option 1 — Disposal staging#
Delay winning participation disposals to absorb the loss later.
Option 2 — Pre-emptive restructuring#
A contribution-disposal can "reset" the holding duration. Caution: risk of abuse of right (CGI Art. L. 64 LPF). See our contribution-disposal 150-0 B ter guide.
Option 3 — Future imputation#
Preserve the loss and impute within 10 years on future long-term gains. Most fiscally prudent path.
7. Director decision checklist#
- Portfolio diagnosis: annual review.
- Disposal anticipation: timing winning and losing disposals.
- ETNC verification: annual check.
- Contemporaneous documentation: holding duration evidence.
- Symmetry steering: tracking table of carryforward losses.
8. 2026 watchpoints#
- LF 2026: no structural modification confirmed.
- Annual ETNC update: systematic check on impots.gouv.fr.
- Conseil d'État case law: strict definition confirmed.
- Contribution-disposal articulation: abuse-of-right risk.
- Accounting provisions: do not confuse with fiscal loss at disposal.
Closing thoughts#
The niche Copé is a substantial tax advantage for French groups — 3% effective rate vs 25% — but its loss symmetry imposes a portfolio management discipline. The strict distinction between accounting and tax is fundamental.
Our firm advises French holdings on participation qualification, disposal strategy and portfolio optimisation. Contact our experts.
Frequently asked questions
Qu'est-ce que la « niche Copé » et comment fonctionne-t-elle en 2026 ?
La niche Copé désigne le régime fiscal favorable des plus-values à long terme sur titres de participation (CGI art. 219 I a quinquies). Les plus-values nettes à long terme réalisées par une société soumise à l'IS lors de la cession de titres de participation détenus depuis au moins 2 ans sont exonérées d'IS, sous réserve de la réintégration d'une quote-part de frais et charges de 12 % imposable à taux plein. Taux d'imposition effectif global : 3 % au lieu de 25 %.
Comment fonctionne la « symétrie » de traitement des moins-values long terme ?
Par symétrie, les moins-values à long terme sur titres de participation détenus depuis ≥ 2 ans ne sont pas déductibles du résultat imposable au taux normal. Elles sont uniquement imputables sur d'autres plus-values long terme de même nature, dans la limite des 10 années suivantes (CGI art. 39 quindecies). Une moins-value de 800 000 € ne réduit PAS l'IS de 200 000 € — elle reste « bloquée » jusqu'à une future plus-value long terme.
Quels titres sont éligibles au régime des titres de participation ?
Sont automatiquement considérés comme titres de participation : (1) titres représentant au moins 5 % du capital ; (2) titres ouvrant droit au régime mère-filles (art. 145 du CGI) ; (3) titres reçus en contrepartie d'apports partiels d'actifs sous le régime de faveur. EXCLUS : titres de placement, OPCVM (sauf cas spécifiques), titres détenus dans un but spéculatif, SPI non cotées.
Mon holding détient des titres d'une filiale étrangère — la niche Copé s'applique-t-elle ?
Oui, sous réserve que les titres soient qualifiés de participation au sens fiscal français (≥ 5 % capital ou mère-filles) et que la société émettrice ne soit pas dans un État ou Territoire Non Coopératif (ETNC) au sens de l'article 238-0 A du CGI. Pour les holdings françaises détenant des filiales dans l'UE ou dans des juridictions conventionnées (UK, USA, Suisse, Singapour), la niche Copé s'applique pleinement.
Peut-on contester une dépréciation comptable pour neutraliser la niche Copé ?
Une dépréciation comptable des titres (PCG art. 214) est différente de la moins-value fiscale réalisée lors de la cession. Pendant la durée de détention, une dépréciation comptable est constatée mais fiscalement neutre tant que les titres ne sont pas cédés. Au moment de la cession, la moins-value fiscale long terme se calcule par différence entre le prix de cession et la valeur d'origine fiscale. La DGFiP peut requalifier une dépréciation artificielle (CGI art. L. 64 LPF — abus de droit), mais ce contentieux est rare pour les provisions de simples titres.
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.
This topic is part of our service Tax accountant in Paris | CIT, VAT & tax audits
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