French General Tax Code
In forcePROVISIONS APPLICABLE TO CONTRACTS CONCLUDED BEFORE 31 December 1995.
The cost price of the asset acquired at the end of a leasing contract is increased by the sums reintegrated pursuant to articles 239 sexies and 239 sexies B. The fraction of the price which exceeds, where applicable, the purchase price of the land, by the lessor, considered as the cost price of the buildings, is depreciated under the conditions mentioned in 2° of 1 of article 39.
Where the lessee purchaser has acquired the rights attached to the contract from a previous lessee, the cost price of the buildings and that of the land as defined in the first paragraph are respectively increased by the fraction of the purchase price of the rights which corresponds to each of these elements.
A decree sets out the procedures for applying the provisions of this article and the reporting obligations.
PROVISIONS APPLICABLE TO CONTRACTS CONCLUDED FROM 1 JANUARY 1996.
The cost price of the asset acquired at the end of a leasing contract is increased by the non-deductible portions of the rental payments pursuant to the provisions of 10 of Article 39 and the sums reintegrated pursuant to articles 239 sexies and 239 sexies B. The portion of the price that exceeds, where applicable, the purchase price of the land by the lessor, considered as the cost price of the buildings, is depreciated under the conditions mentioned in 2° of 1 of Article 39. However, in the case of the buildings referred to in the second paragraph of Article 39(10), the cost price of the buildings is depreciated over the normal period of use of the property remaining at that date since its acquisition by the lessor. For the latter buildings, in the event of a subsequent sale, the two-year period referred to in b) of 2 of Article 39 duodecies is assessed from the date on which the asset is entered in the lessor's assets.
When the acquiring lessee has acquired the rights attached to the contract from a previous lessee, the cost price of the buildings and that of the land as defined in the first paragraph are respectively increased by the fraction of the acquisition price of the rights that corresponds to each of these items.
A decree sets out the terms and conditions for applying the provisions of this article and the reporting obligations.
