Frequency/market practice: Stamp duty applies. Usually borne and paid by the buyer, but shared payment can be negotiated (yet both parties remain liable for payment towards the French tax authorities). Stamp duties are equal to 0.1% of purchase price paid to each seller for the transfer of shares in French SAs or French SASs; 3% of the portion of purchase price paid to each seller after application of an allowance equal to the ratio between EUR 23,000 and the number of issued shares for the transfer of shares in French SARLs; and 5% for the transfer of shares in real estate-oriented companies.

Frequency/market practice: It is fairly common to have tax representations and warranties and specific indemnification included in the general representations and warranties. However, it is also common to have specific tax indemnity when a specific tax risk has been identified in the due diligence and the specific indemnification period aligned on applicable statute of limitations for tax matters. Separate deed of tax covenant is not common in France.