France's 2026 Finance Act for CEOs: The Exhaustive Checklist of Measures That Concern You

Introduction

In January 2026, the French government invoked Article 49.3 of the Constitution to force through the Finance Bill. Law n° 2026-103 was enacted on 19 February 2026 and came into force the next day — with several measures applying to transactions completed from that date onward. For a CEO or owner of a French SME or mid-market company, the impact is not theoretical: it directly drives the tax cost of a disposal, the conditions of a family transfer, and the effective tax burden on current-year income.

The French 2026 Finance Act (LF 2026) is the annual law that sets tax rules applicable from 1 January 2026 for certain provisions and from 24 February 2026 for others. For a CEO, it is the legislative reference point against which every wealth, disposal and transfer strategy must be recalibrated — whether the apport-cession regime, the Pacte Dutreil, the new high-income differential contribution, or the treatment of tax-shelter investment schemes.

« The Finance Act is not just one budget law among others: it is the framework within which every CEO will have to structure their wealth decisions for the next 12 to 24 months. Anticipate rather than endure — that is the only reasoned response to a reform this dense. » — Hectelion, 2026.

The challenge is real: the LF 2026 measures that concern CEOs are scattered across dozens of articles, covered piecemeal by the specialised press (KPMG 2026-01-26, Deloitte 2026-01-23, Mayer Brown 2026-02-06, Club Patrimoine 2026-02-02), and no operational synthesis offered a consolidated reading for SME and mid-market CEOs. That is precisely the purpose of this article.

This article covers the legislative origin and context of LF 2026, the five axes that directly concern CEOs, the detailed measures on disposal, transfer, high-income taxation and tax shelters, what has not changed (and why you still need to revise your plan), the 5 pitfalls to avoid, the strengths and limits of each scheme, two worked numerical cases, a CEO's word, a 10-question FAQ, an operational synthesis and the sources.

Origin: How LF 2026 Was Adopted — and What That Changes

LF 2026 is the product of a tense legislative process. The initial bill tabled at the National Assembly in autumn 2025 was substantially reworked in committee, with amendments touching several key tax instruments for business owners. Unable to secure a majority on the floor, the government invoked Article 49.3 of the Constitution in January 2026, staking its responsibility on the text.

This procedure has a concrete consequence for CEOs: certain parliamentary amendments seeking to soften the measures — notably on the Pacte Dutreil — were dropped from the final text. The law enacted on 19 February 2026 is the one the government chose to defend, with no concession on the most binding points. Sources: Actu-Juridique, 3 March 2026; Mayer Brown, 6 February 2026.

LF 2026 lands in a particular macroeconomic context: the slowdown in French SME disposals (Les Echos, Cessions de PME : le coup de frein, 23 April 2026), pressure on valuation multiples (Argos Index® Q4 2025: 8.3× EBITDA, the lowest level since 2014), and ongoing fiscal consolidation driven by a persistent public deficit. For a CEO contemplating a disposal or transfer over the next 24 to 36 months, both the regulatory environment and the M&A market tightened simultaneously.

Definition: What LF 2026 Means for an SME CEO

A Finance Act (loi de finances, LF) is the annual law authorising revenue collection and setting the State's expenditure for the relevant budgetary year. For a CEO, it is also the annual vehicle for amending the French Tax Code (CGI). LF 2026 (Law n° 2026-103 of 19 February 2026) amends several CGI articles that directly drive the taxation of disposals, transfers and CEO income.

It differs from a simple rate adjustment: it changes the very structure of several optimisation schemes — tightening eligibility conditions, narrowing the scope of eligible assets and extending holding periods. These changes are not retroactive in principle, but their effective date — sometimes different from the enactment date — means each transaction must be assessed individually to determine which regime applies.

Scope: Who Is Concerned by LF 2026?

LF 2026 primarily concerns three categories of CEO. CEOs contemplating a disposal of an SME or mid-market company within 12 to 36 months, who must recalibrate their tax-deferral strategy (apport-cession) against the new constraints. CEOs planning to transfer their company within the family, who must verify the impact of the Pacte Dutreil extension and the exclusion of luxury assets. High-income individuals (reference income above €250,000 for a single filer) who are subject to the new differential contribution and must review their tax-shelter arrangements.

The CFO and the certified accountant advising these CEOs are equally directly concerned: it is on them that the burden of updating financial models and wealth strategies falls. LF 2026 cannot be read in isolation: it interacts with decisions already taken (contributions to holdings made before 24 February 2026) and with decisions still to be made (planned disposals, scheduled donations).

Axis 1 — What Changes for Disposals: Apport-Cession 150-0 B ter Tightened

Article 11 of LF 2026 amends CGI Article 150-0 B ter on four points simultaneously, applicable to disposals of contributed shares completed from 24 February 2026.

The Four Changes in Detail

Reinvestment rate: from 60% to 70%. The holding must now reinvest at least 70% of disposal proceeds in eligible productive activities — up from 60% before. On an €8m disposal, the obligation rises from €4,800k to €5,600k. The liquidity immediately available falls to €2,400k (30% of the proceeds).

Reinvestment window: from 24 to 36 months. In exchange for the higher rate, the window to reinvest is extended by one year. This addresses a frequent operational constraint: investments in unlisted companies take time to source and close.

Holding period: from 1 year to 5 years. This is the most constraining change, often overlooked in superficial readings of the text. Assets and securities acquired through the reinvestment must now be held for five years — up from twelve months. This duration applies to every type of eligible reinvestment.

Exclusion of real estate. Activities falling under Section L of the French NAF code (property management, building construction for sale or lease, passive management activities) are now excluded from eligible reinvestments. The exception still standing: hotels and certain managed-residence structures do not fall under Section L and remain in principle eligible, subject to careful structure-by-structure analysis. Source: CGI Art. 150-0 B ter — LEGIARTI000053542872; LF 2026 Art. 11. Reference doctrine: BOFiP BOI-RPPM-PVBMI-30-10-60.

Side-by-Side Comparison: Before / After LF 2026

Apport-cession (CGI Art. 150-0 B ter) — 2025 vs LF 2026 side-by-side

In four simultaneous changes, LF 2026 leaves untouched the underlying principle of the apport-cession tax deferral but substantially tightens its access conditions.

The reinvestment burden rises. The rate moves from 60% to 70% of disposal proceeds, mechanically shrinking the liquidity immediately available to the seller — on an €8m disposal, this means an additional €800k locked into the productive reinvestment perimeter. This added constraint is partly offset by an extended reinvestment window, from 24 to 36 months, in acknowledgment that sourcing and closing deals in unlisted companies takes time.

The most binding change — frequently understated in surface readings of the text — concerns the holding period of reinvested assets: 5 years instead of the previous 12 months. This extension structurally shifts the trade-off between apport-cession and alternative schemes, particularly for CEOs with a short liquidity horizon. In parallel, real estate — historically a major reinvestment target — is now excluded: every activity falling under NAF Section L (property management, building construction for sale or lease, passive management activities) is no longer eligible, with the narrow exception of hotels and certain managed-residence structures under specific conditions.

A decisive point for determining which regime applies: the pivotal date is the date of the disposal of the contributed shares by the holding, not the date of the original contribution. A holding incorporated in 2023 whose shares are sold in March 2026 falls entirely under the new regime, even if the strategy was designed under the previous rules.

Source: CGI Art. 150-0 B ter; LF 2026 n° 2026-103 of 19/02/2026, Art. 11 — Légifrance. BOFiP doctrine update pending.

The decisive date is the date of the disposal of the contributed shares by the holding, not the date of the initial contribution. A CEO who contributed their shares in 2023 and whose holding sells in March 2026 is subject to the new rules. A disposal completed before 24 February 2026 remains under the 2025 rules — even if the holding was incorporated very recently.

For a complete five-scenario tax analysis on an €8m disposal, see our article on apport-cession Art. 150-0 B ter and LF 2026.

Axis 2 — What Changes for Transfers: Pacte Dutreil Under Pressure

Article 8 of LF 2026 amends CGI Article 787 B on two points, applicable to transfers completed from 21 February 2026.

Individual Holding Commitment Extended from 4 to 6 Years

The minimum duration of the individual holding commitment, undertaken by each beneficiary after donation or succession, rises from 4 to 6 years. The total minimum commitment duration (collective + individual) now stands at 8 years minimum — up from 6 years.

This directly impacts heirs' or donees' liquidity: they cannot sell the shares received for 6 years from the transfer date, on pain of retroactively losing the Dutreil benefit. For families whose disposal horizon is shorter than 8 years, the Dutreil loses part of its appeal relative to other instruments.

Exclusion of Luxury Assets from the Eligible Base

LF 2026 aligns the definition of Dutreil-eligible assets with that of CGI Article 199 terdecies-0 A (IR-PME regime). Now excluded from the eligible base: real estate not assigned to operations, yachts, jewellery, passenger vehicles, wines and spirits, works of art (exception: exclusive professional use for at least 3 years). These assets must be isolated and valued separately in the calculation of the Dutreil base.

In practice, for any SME holding such assets, an independent valuation prior to the donation is indispensable to document the allocation and avoid an administrative challenge.

What Has Not Changed

The 75% abatement on the transferred value is maintained. The 50% reduction before age 70 (CGI Art. 790) is maintained. The €100k statutory allowance per child is maintained. Effective rates remain among the lowest in Europe for wealth transfer — around 4.2% for a €20m SME transferred to two children before age 70 (Cour des comptes, Pacte Dutreil report, November 2025). Source: Investir Les Echos, 20 April 2026.

For worked numerical cases and the « secured median value » method, see our article on the Pacte Dutreil 2026.

Axis 3 — What Changes for High-Income Earners: CDHR, PER, FCPI, JEI

The High-Income Differential Contribution (CDHR)

Article 1 of LF 2026 introduces a high-income differential contribution (CDHR), applicable from 1 January 2026 (2025 income, declared in 2026). The principle: any tax household whose average tax rate on reference income is below 20% is subject to a differential contribution to reach that floor. Entry thresholds: €250,000 of reference income for a single filer, €500,000 for a couple. Source: LF 2026 Art. 1; BOFiP doctrine update pending.

The CDHR is calculated as the difference between 20% of reference income and the income tax actually paid (excluding social contributions). It applies to taxpayers benefiting from mechanisms that reduce their effective rate below this floor — notably investment income taxed under the PFU, disposal capital gains, and income from tax-shelter schemes.

Concrete impact for a CEO: a CEO with reference income of €800,000 whose effective taxation (PFU + IR) is 15% will face a CDHR of 5% × €800,000 = €40,000. Tax planning must now treat this floor as a structural constraint.

Retirement Savings Plan (PER)

LF 2026 does not change the tax regime of the individual PER on substance. The 2026 deductibility ceiling for a self-employed worker (TNS) is computed on the basis of the 2025 PASS (€46,368), i.e. about €37,000 (10% of 8 PASS). The PER remains one of the few tools to reduce taxable income and, by extension, lower the CDHR base. For high earners exposed to CDHR, topping up the PER before 31 December 2026 is a priority action.

FCPI and FIP

Innovation Mutual Funds (FCPI) and Local Investment Funds (FIP) maintain their 18% income tax reduction on contributions, within the €12,000 (single) or €24,000 (couple) bracket. LF 2026 has not changed these ceilings. However, their interaction with the CDHR must be analysed: an IR reduction obtained via an FCPI can mechanically push the effective rate below 20%, triggering the CDHR. Net calculation must precede any investment.

JEI — Young Innovative Companies

LF 2026 maintains and reinforces the JEI status. Eligible companies benefit from a corporate tax exemption in the first years and from an exemption from employer social contributions on researchers' salaries. For a CEO who is a partner in a JEI, the disposal of shares after the holding period may benefit from a specific capital gains exemption (CGI Art. 150-0 A, I bis). The minimum holding period is 3 years. Source: CGI Art. 44 sexies, 44 sexies-0 A; BOFiP BOI-BIC-CHAMP-80-20-20.

Axis 4 — Tax Shelters: What LF 2026 Touches and What It Spares

LF 2026 does not undertake a global reform of the tax-shelter cap (still €10,000 as a general rule, €18,000 with overseas territory investments). It acts through targeted adjustments.

Maintained unchanged: IR-PME reduction (CGI Art. 199 terdecies-0 A, 18%), research tax credit (CIR, Art. 244 quater B), Madelin scheme, IR/IS exemption on forestry groupings.

Modified or impacted: the definition of Dutreil-eligible assets (cf. Axis 2), the apport-cession conditions (cf. Axis 1), and the CDHR/shelter interaction for high earners (cf. Axis 3). LF 2026 in fact creates a second-order effect on tax shelters: by introducing a 20% effective tax floor, it mechanically reduces the net efficiency of certain schemes for taxpayers whose pre-shelter effective rate is close to this floor.

Axis 5 — What Has Not Changed (and Why You Still Need to Revise Your Plan)

Several key schemes are not amended by LF 2026: the capital-gains exemption on retirement (CGI Art. 150-0 D ter, €500k fixed allowance), the Copé exemption on participations held for more than 2 years in a corporate-tax-liable holding (CGI Art. 219 I a quinquies, ~3% effective rate), the IFI (no change in scale or scope), and the regime of pre-disposal donations (capital gain wash-out on donation to children before disposal).

Why revise your plan anyway? Because LF 2026 changes the conditions of the alternatives to these schemes. A plan built on apport-cession to defer 60% of the capital gain and reinvest in real estate is now ineffective. A transfer plan based on a 4-year individual commitment must be recalibrated to 6 years. And the CDHR can render less effective the very schemes that looked optimal under the 2025 regime. Revising the wealth and tax plan is not optional: it is an operational necessity for any CEO whose situation was structured before 19 February 2026.

The 5 Pitfalls to Avoid With LF 2026

Pitfall 1 — Assuming the 2025 regime still applies to your transaction.‍

The decisive date for apport-cession is that of the disposal by the holding, not the contribution. A holding incorporated in 2022 that sells its shares in April 2026 is subject to LF 2026 rules (70% / 3 years / 5 years / real estate excluded). Many CEOs miss this point and have planned real-estate reinvestments that are now excluded.

Pitfall 2 — Including real estate in the reinvestment without checking the NAF section.‍

The real-estate exclusion targets activities under NAF Section L. Hotels and managed residences under certain conditions remain in principle eligible. Failing to verify the exact NAF position before committing can break the deferral with penalties and late interest.

Pitfall 3 — Failing to isolate luxury assets in the Dutreil base.‍

Since 21 February 2026, luxury assets are excluded from the Dutreil-eligible base. A donation completed without first valuing and isolating these assets — via an independent valuation report — exposes the donor to a tax reassessment on the excluded fraction, with consequences potentially exceeding the initial gain.

Pitfall 4 — Ignoring the CDHR effect on tax-shelter schemes.‍

Certain CEOs cut their IR below the 20% effective rate via tax shelters, without anticipating that the CDHR will partially erase the benefit. The CDHR net calculation must be built into every tax-shelter investment decision before year-end 2026.

Pitfall 5 — Failing to have the transaction structure validated by an expert before signing.‍

LF 2026 raises the risk of OBO (CGI Art. L64 LPF in France) abuse-of-law challenges, as well as Swiss-side requalification risks. A structure validated before signing, documented by an independent valuation report and a tax opinion, is the only durable protection. A structure validated after an LOI signature no longer enjoys the same level of protection.

Strengths and Limits of Each Scheme After LF 2026

Apport-Cession (CGI Art. 150-0 B ter)

Strength preserved: defer a significant capital gain to let the holding reinvest a larger base. On an €8m disposal, the €2.25m tax deferral (PFU 30%) frees up a meaningfully larger reinvestable pool. See our financial structuring service.

Tightened limits: 70% rate, real estate excluded, 5-year holding. The scheme remains relevant for CEOs with an identified productive investment project, a 5-year horizon, and the ability to document the holding's economic substance.

Pacte Dutreil

Strength preserved: one of the lowest effective transfer tax rates in Europe (between 1.6% and 4.5% depending on age and structure), with no obligation to sell. See our financial structuring service to model the scenarios.

Tightened limits: 8 years total commitment, exclusion of luxury assets, heightened reassessment risk on insufficiently documented valuations. A prior financial due diligence is indispensable to fix a defensible base.

CDHR

Pure constraint: no intrinsic upside. It forces a review of the income structure for exposed CEOs. The PER, employee savings schemes and dividend deferrals are the main adaptation levers.

Worked Numerical Cases

Case 1 — CEO Selling, Holding Set Up in 2023 (fictional data)

Mr A, 58, contributed his shares to a holding in 2023 as part of an apport-cession (Art. 150-0 B ter tax deferral) project. The holding sells in May 2026 for €10m. Latent capital gain: €9.2m.

Under LF 2026: obligation to reinvest €7m (70%) into eligible productive activities (real estate excluded), within 36 months, with a minimum 5-year holding. Immediately available liquidity: €3m (30%). Deferred tax: €2.76m (PFU 30% × €9.2m). Trap: Mr A had planned to reinvest €4m in rental real estate — this scheme is now ineligible. A restructuring of the reinvestment plan is indispensable before the disposal.

Comparison with a disposal completed before 24/02/2026 (2025 regime): €6m mandatory reinvestment (60%), real estate eligible, 12-month holding. LF 2026 represents, in this case, an additional €1m to reinvest and a 5-year lock-up instead of 1 year.

Case 2 — CEO in Family Transfer, Vaudois Industrial SME (fictional data)

Mrs B, 65, runs an industrial SME valued at €12m (normalised EBITDA €2.1m, DCF (WACC) method + sector multiples converging — see our business valuation service). She plans to transfer to her two children via a Pacte Dutreil.

The SME holds a collector car (€180k) and a second home (€650k). Under LF 2026, these €830k of assets are excluded from the eligible base. The Dutreil base falls to €11,170k.

Transfer tax calculation:

Without exclusion (€12m base) — LF 2026 regime before exclusion notification:

• Share per child: €6m
• Base after 75% Dutreil abatement and €100k statutory allowance: €1,400k
• Tax under CGI Art. 777 scale: €387,820 per child
• After 50% reduction before age 70 (CGI Art. 790): €193,910 per child
• Total for 2 children: €388k — effective rate: 3.23%

With exclusion of luxury assets (€11,170k base):

• Share per child: €5,585k
• Base after 75% Dutreil and €100k statutory allowance: €1,296k
• Tax under CGI Art. 777 scale: €351,508 per child
• After 50% reduction before age 70 (CGI Art. 790): €175,754 per child
• Total for 2 children: €352k — effective rate: 3.15%

Excluding luxury assets generates roughly €36k in tax savings. Without documented isolation and prior valuation by an independent expert, the entire base can be reassessed — wiping out this gain entirely.

Calculations based on the CGI Art. 777 scale — direct line 2026. 50% reduction under CGI Art. 790 applied (donor < 70 years old, full ownership). €100k statutory allowance per child (CGI Art. 779). Indicative — consult a notary for a personalised calculation.

The CEO's Word

LF 2026 is not a tax catastrophe. It is a dense, technical reform that has been poorly popularised — which makes it a source of risk for CEOs relying on plans built before its entry into force without revising them.

What we observe daily at Hectelion: CEOs who signed LOIs in January 2026 on the basis of tax projections built under the old regime. Holdings that had planned real-estate reinvestments now ineligible. Family transfers planned over 4 years of individual commitment that must be extended to 6 years.

Our role is not to comment on the law — it is to build, with our clients and in coordination with their tax counsel and notaries, the financial structures and valuations that let them navigate this new framework safely. Independent valuation of transferred shares, documentation of the Dutreil base, net CDHR calculation — these are precise technical acts, not opinions.

For every CEO whose wealth situation or disposal strategy was built before 19 February 2026: now is the time to revise the plan.

Aristide Ruot, Ph.D — Founder & CEO, Hectelion

FAQ — 10 Questions on LF 2026 for CEOs

Q1 — Does LF 2026 apply to a contribution completed before 24 February 2026?

The decisive date is that of the disposal of the contributed shares by the holding, not the contribution itself. If your holding was incorporated in 2023 and sells its shares in 2026 after 24 February, the new rules (70% / 3 years / 5 years / real estate excluded) apply. See our full guide: apport-cession LF 2026.

Q2 — Is real estate fully excluded from apport-cession-eligible reinvestments?‍

Largely, but not entirely. Activities under NAF Section L are excluded. Hotels and certain managed residences remain in principle eligible, subject to careful structure analysis. The general rule is exclusion — residual eligibility is the exception.

Q3 — What is the effective transfer tax rate under a Pacte Dutreil after LF 2026?

Per the Cour des comptes (November 2025): ~4.2% before age 70 for a €20m SME transferred to two children (full ownership). For a €12m SME, the exact calculation gives ~3.23% (CGI Art. 777 scale, 50% Art. 790 reduction, €100k allowance per child). ~1.63% for a €2.5m SME. These rates were not changed by LF 2026 — only the eligibility conditions were tightened.

Q4 — Does the CDHR apply to business disposal capital gains?‍

The CDHR applies to reference income. PFU-taxed disposal capital gains are included. A CEO realising a sizeable gain whose overall effective rate falls below 20% may face the CDHR on the difference. An appropriate financial structuring can reduce this exposure.

Q5 — Can a Pacte Dutreil and a pre-disposal donation (capital gain wash-out) be combined?‍

These two regimes do not stack directly on the same transaction. They can complement each other in an overall strategy: partial donation under Dutreil on a fraction of the shares, and a non-Dutreil donation with capital gain wash-out for another fraction — subject to detailed tax analysis.

Q6 — Does LF 2026 change the IFI?‍

No. The IFI is not amended by LF 2026. The scale, taxable-asset perimeter and valuation rules remain unchanged.

Q7 — How does the PER interact with the CDHR?‍

Deductible PER contributions reduce taxable income and therefore, by base effect, the effective tax rate. They can reduce or eliminate the CDHR base. This is one of the few action levers available before year-end 2026 for exposed CEOs.

Q8 — Did LF 2026 amend the retirement disposal exemption (CGI Art. 150-0 D ter)?‍

No. The €500k fixed allowance on disposal capital gains for retiring CEOs is maintained without change.

Q9 — Does LF 2026 apply to Franco-Swiss structures?‍

LF 2026 is a piece of French law. It applies to French tax residents and transactions completed in France. For binational structures, the interaction with Swiss tax rules (LIFD Art. 16 para. 3, exit tax CGI Art. 167 bis) must be analysed separately. Our valuation service covers both jurisdictions. See also: valuation differences France vs Switzerland.

Q10 — When should you engage an independent expert?‍

Before any disposal, transfer or reinvestment transaction involving the schemes modified by LF 2026. The valuation of contributed shares, the isolation of luxury assets in the Dutreil base, and the net CDHR calculation must be done by a professional before signing, not after. Contact Hectelion for a confidential first conversation — 30 minutes, no commitment.

Conclusion: LF 2026 for CEOs — Anticipate, Value, Structure

LF 2026 deeply changes the access conditions of the three schemes most used by French SME and mid-market CEOs: apport-cession (70% rate, real estate excluded, 5-year holding), the Pacte Dutreil (6-year individual commitment, exclusion of luxury assets) and high-income taxation (CDHR, 20% floor). These changes do not abolish the schemes themselves — but they have tightened the conditions to the point of making many structures built under the 2025 regime obsolete.

The operational response runs through three concrete steps: an independent valuation of the relevant shares or assets, a financial structuring adapted to the new framework, and a tax plan coordinated with legal counsel and notaries. Hectelion works on the first two components — valuation, financial due diligence and structuring — in coordination with your advisers, to secure your wealth and disposal decisions.

Contact us for a confidential first conversation — 30 minutes, no commitment.

Operational Synthesis: LF 2026 — What to Do Before 31 December 2026

On apport-cession (act immediately). Any CEO whose holding is set up under the 150-0 B ter regime must, as an absolute priority, verify the disposal date of the contributed shares: any sale completed on or after 24 February 2026 falls under the new LF 2026 rules (70% reinvestment / 36 months / 5-year holding / real estate excluded), regardless of when the holding was created. If the original reinvestment plan included real estate — directly or via a property holding — it must be rebuilt from scratch: NAF Section L activities are now excluded, with the narrow exception of hotels and certain managed-residence structures, subject to case-by-case analysis.

On the Pacte Dutreil (act before any donation). Every CEO planning a family transfer must, before signing any deed, isolate and document luxury assets held by the company (real estate not assigned to operations, yachts, jewellery, passenger vehicles, wines and spirits, works of art): they have been excluded from the Dutreil-eligible base since 21 February 2026, and an undocumented base exposes the donor to a full reassessment. In parallel, the individual holding commitment duration must be recalibrated from 4 to 6 years for every projection — meaning a total 8-year minimum commitment (collective + individual), which directly affects heirs' liquidity horizon and may change the trade-off between Dutreil and alternative transfer schemes.

On high-income taxation (act before year-end 2026). Any CEO with reference income above €250,000 (single) or €500,000 (couple) must compute their net CDHR exposure, factoring in interactions with tax shelters — an IR reduction obtained via FCPI, FIP or other schemes can mechanically push the effective rate below the 20% floor and trigger the differential contribution. The most effective lever before 31 December 2026 is topping up the PER (deductibility ceiling around €37k for self-employed in 2026), which reduces taxable income and therefore the CDHR base.

On transaction structuring (act before signing). For any donation, succession or M&A transaction touched by LF 2026, an independent valuation of the shares to be transferred is now indispensable — not optional — to secure a defensible base against tax reassessment. CEOs in the middle of an OBO must have the structure re-examined before signing the LOI: LF 2026 has raised the abuse-of-law risk under CGI Art. L64 LPF, and the protection conferred by an expert opinion delivered after the LOI is materially weaker than one delivered before.

This synthesis is an aide-memoire, not tax advice. Each situation requires individual analysis by a qualified expert.

Sources

• LF 2026 — Law n° 2026-103 of 19 February 2026, published 23 February 2026 — economie.gouv.fr
• French Tax Code — Art. 150-0 B ter, Art. 787 B, Art. 1 (CDHR), Art. 150-0 D ter, Art. 219 I a quinquies, Art. 244 quater B, Art. 44 sexies, Art. 199 terdecies-0 A, Art. 777, Art. 779, Art. 790 — legifrance.gouv.fr
• BOFiP — BOI-RPPM-PVBMI-30-10-60; BOI-ENR-DMTG-10-20-40-10; BOI-BIC-CHAMP-80-20-20 — bofip.impots.gouv.fr (BOFiP doctrine update pending for the articles amended by LF 2026)
• KPMG — Loi de finances pour 2026 : principales mesures fiscales, 26 January 2026
• Deloitte — LF 2026 : les mesures phares pour les entreprises et les particuliers, 23 January 2026
• Mayer Brown — French Finance Bill 2026: key measures for business owners, 6 February 2026
• Club Patrimoine — Apport-cession et Dutreil après la LF 2026, 2 February 2026
• Actu-Juridique — Loi de finances 2026 : ce qui change pour la transmission d'entreprise, 3 March 2026
• Cour des comptes — Report on the Pacte Dutreil, 18 November 2025 (synthesis: PDF synthesis)
• Les Echos / Investir — Pacte Dutreil: the new constraints of LF 2026, 20 April 2026
• Les Echos — SME disposals: the slowdown, 23 April 2026
• Argos Index® mid-market Q4 2025 — Epsilon Research / Argos Wityu, 18 February 2026
• Hectelion SA — Internal observation, Franco-Swiss M&A market, 2026