The 2021 French Finance Bill provides for the deferral of taxation on capital gains arising from the revaluation of assets in the balance sheet.
The main purpose of this exceptional measure is to strengthen corporate shareholders’ equity in an unprecedented economic context.
Such strengthening of the balance sheet allows companies to provide a more accurate picture of their financial position and, a fortiori, increase their financing capacity.
“The balance sheet will no longer just be viewed in terms of historical costs but in terms of recent values, which will allow for improvements in ratings", explains Germain Simoneau, President of the Corporate financing commission by the CPME (SME’s Confederation).
