13.5.2002 Official Journal of the European Communities L 126/27 COMMISSION DECISION of 21 November 2001 on the tax-free provisions introduced by France for setting up establishments abroad (Notified under document number C(2001) 3451) (Only the French text is authentic) (Text with EEA relevance) (2002/347[ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 4(c) thereof, Having regard to Commission Decision No 2496/96/ECSC of 18 December 1996 establishing Community rules for aid to the steel industry (hereinafter the steel aid code) (!), and in particular Article 6(5) thereof, Having called on interested parties to submit their comments pursuant to the provisions cited above (%) and having regard to those comments, Whereas: 1. PROCEDURE (1) In connection with the procedure initiated under Article 6(5) of Decision No 2496/96/ECSC with regard to Article 34 of Spanish Law No 43/1995 (%), an intervening party drew the Commission's attention to the tax provisions on the setting-up by French firms of establishments abroad contained in Articles 39gA and D of the French General Tax Code (CGI). (2) By letters of 3 May and 14 June 2000 the Commission invited France to inform it whether any ECSC firms had benefited under the provisions and to send it all relevant information enabling it to assess the measures under Article 4(c) of the ECSC Treaty. (3) By letter of 28 November 2000 the Commission informed France of its decision to initiate the procedure provided for in Article 6(5) of Decision No 2496/96[ECSC in respect of the aid. () OJ L 338, 28.12.1996, p. 42. (3) 0] C 160, 2.6.2001, p. 12. () O] C 329, 31.10.1997, p. 4. (4)  The Commission decision to initiate the procedure was published in the Official Journal of the European Communities (*). The Commission called on interested parties to submit their comments on the case in question. (55 The Commission received comments from the UK authorities which it forwarded to France for further comment. 2. DETAILED DESCRIPTION OF THE AID (6)  Articles 39¢A and D of the CGI enable a firm temporarily to deduct from its tax base either the losses incurred by its subsidiaries or certain establishments located abroad, which losses in the case of commercial or service investments are restricted to the amount of the investment and subject to a possible ceiling or, in the case of industrial or agricultural investments, part of the investments made by those subsidiaries and establishments. (7) In the case of commercial investments, the foreign operation's business must be the marketing abroad of goods produced principally by the French firm in France; eligibility is automatic. In the case of agricultural, industrial or service investments, the firm must obtain approval. (8)  All countries fall within the scope of the scheme except, in the case of industrial or agricultural establishments, Member States of the European Union. (9)  For Article 39g to apply, the parent company merely needs to hold 10 % of the subsidiary's capital in the case of an industrial or agricultural establishment, or one third in the case of a commercial or service establishment. () See footnote 2.