The Bill on the promotion of investments in the French economy (projet de loi pour la confiance et modernisation de l'conomie) was approved by the French Parliament on 12 July 2005. The bill, amongst other provides for an Extension of the participation exemption

Long-term capital gains from the sale of securities by Venture Capital Investment Funds (Fonds Communs de placement Risques (FCPR)) and Venture Capital Companies (Socit de Capital Risque (SCR)) will progressively benefit from a participation exemption regime under certain conditions. Under French tax law, FCPR and SCR are treated as transparent entities and are exempt from corporate tax on income derived from the management of their investment portfolios, regardless of whether such income is ch…