French General Tax Code
In forceThe sole proprietorships subject to a real taxation regime and the companies referred to in the second paragraph of Article L. 223-1 of the Commercial Code subject to income tax may set aside a provision for investment in respect of financial years closed before 1 January 2010.
The provision referred to in the first paragraph may only be set aside by the companies referred to in the said paragraph that carry on an industrial, commercial or craft business, that were created or taken over less than three years ago, that employ fewer than twenty employees and that, over the course of the financial year, reduced or extended, where applicable, to twelve months, either have sales of no more than €50 million or total assets of no more than €43 million. These conditions are assessed in respect of the financial year ending in 2005 or, in the event of a subsequent creation, on the closing date of the first financial year.
Activities carried out in one of the following sectors are not eligible for the benefit of this provision: transport, production or processing of agricultural products, fishing and aquaculture.
The annual allocation to this provision may not exceed €5,000. The total amount of the provision at the close of a financial year may not exceed €15,000.
This provision must be used, no later than the close of the fifth financial year following the first annual allocation, for the acquisition of depreciable fixed assets, excluding buildings and passenger vehicles. When the provision is used in accordance with its purpose, the portion used in equal proportions over the year of acquisition of the depreciable asset and the four following years is deducted from profit. The amount not used by the end of the fifth financial year following the first annual allocation is added back to the profit or loss for that financial year.
The benefit of the provision is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.
