French General Tax Code
In forceI.-Companies engaged in the business of publishing television services, radio services or on-demand audiovisual media services within the meaning of the fourth to sixth paragraphs of Article 2 of Law no. 86-1067 of 30 September 1986 relating to the freedom of communication and subject to corporation tax may benefit from a tax credit in respect of the expenses mentioned in II of this article when they can demonstrate a reduction in turnover of at least 10% for the period from 1 March 2020 to 31 December 2020, compared with the period from 1 March 2019 to 31 December 2019.
Where a television service publisher referred to in the first paragraph of this I has a subsidiary whose sole corporate purpose is to invest in producer's shares in the financing of cinematographic works, the turnover of this subsidiary is added to that of the publisher, in proportion to the percentage of the subsidiary held by the publisher, for the purposes of assessing the reduction in turnover referred to in the same first paragraph.
The subsidiary referred to in the second paragraph may be included in the calculation of the reduction in turnover referred to in the same first paragraph.
The subsidiary referred to in the second paragraph may benefit from the tax credit provided for in the first paragraph in respect of the expenditure referred to in b of 1° of II.
II.-The tax credit provided for in the first paragraph in respect of the expenditure referred to in b of 1° of II.
II.-The tax credit is equal to 15% of the total amount of the following expenses incurred between 1 March 2020 and 31 December 2020 in France, in another Member State of the European Union or in another State party to the Agreement on the European Economic Area that has signed an administrative assistance agreement with France to combat tax evasion and avoidance, provided that they are included in the calculation of taxable income:
>1° Expenses incurred by the subsidiary mentioned in the second paragraph may benefit from the tax credit provided that they are included in the calculation of taxable income.
1° Expenditure incurred by publishers of television services or on-demand audiovisual media services contributing to the development of the production of cinematographic and audiovisual works declared to the Autorité de Régulation de la Communication Audiovisuelle et Numérique under the obligations provided for in 3° of Article 27, 6° of Article 33 or 3° of Article 33-2 of the aforementioned Law no. 86-1067 of 30 September 1986, when it falls into the following categories:
a) Purchase of broadcasting rights for works;
> b) Investment in producer shares
b) Investment in producer's shares in the financing of works;
c) Financing of the writing and development of works;
> d) Adaptation for blind persons
d) Adaptation for blind or partially-sighted people of works taken into account under the obligations mentioned in the first paragraph of this 1°;
e) Financing of training for authors, within the limits and conditions set by the agreements provided for in articles 28 and 33-1 of the aforementioned law no. 86-1067 of 30 September 1986 and by the specifications provided for in article 48 of the same law;
f) Promotion of works, within the limits and conditions set
f) Promotion of works, within the limits and under the conditions laid down in the agreements provided for in Articles 28 and 33-1 of the aforementioned Act no. 86-1067 of 30 September 1986 and in the specifications provided for in Article 48 of the same Act;
2° Expenditure incurred by the publishers of television services, radio services or on-demand audiovisual media services when it falls into the following categories:
a) Remuneration paid to broadcasters for their services.
a) Remuneration paid to authors of cinematographic or audiovisual works listed in Article L. 113-7 of the Intellectual Property Code and to authors of radio works listed in Article L. 113-8 of the same code;
b) Royalties paid to authors of cinematographic or audiovisual works listed in Article L. 113-7 of the Intellectual Property Code and to authors of radio works listed in Article L. 113-8 of the same code;
b) Royalties paid to the collective management bodies mentioned in Articles L. 321-1 to L. 321-5 of the said code in respect of copyright or related rights provided for in Book II of Part One of the same code;
III.
III - The expenditure mentioned in II of this article may not be included both in the basis for calculating the tax credit mentioned in I and in the basis for calculating another tax credit.
IV - Regardless of the type of tax credit, the expenditure may not be included in the basis for calculating the tax credit mentioned in IV.
IV.- Regardless of the date on which the financial years end and regardless of their duration, the tax credit is calculated for the period from 1 March 2020 to 31 December 2020.
V.-Unpaid public subsidies are not included in the calculation of the tax credit.
V.- Non-reimbursable public subsidies received by companies and directly allocated to the expenditure mentioned in II are deducted from the basis for calculating the tax credit.
VI.-The total sum of tax credits received by companies is calculated on the basis of the tax credit.
VI.-The total sum of tax credits granted per company may not exceed the amount of the reduction in turnover determined in accordance with the conditions set out in I.
For the subsidiary mentioned in the last paragraph, the total amount of tax credits granted per company may not exceed the amount of the reduction in turnover determined in accordance with the conditions set out in I.
For the subsidiary mentioned in the last paragraph of the same I, the amount of the decrease in sales is understood to be the sum of the amount of the decrease in sales of the publisher that owns it and, in proportion to the percentage of ownership, the amount of the decrease in its sales.
