French General Tax Code
In forceConstruction premiums allocated pursuant to article R. 311-1 of the Code de la construction et de l'habitation are not included in the results of the financial year in progress on the date of their payment.
The amount of premiums received during a financial year must be added back to the taxable profits of that financial year or, where applicable, of the following financial year(s) up to the amount of depreciation applied, at the close of each of the said financial years, to the cost price of the properties giving entitlement to the allocation of premiums.
In the event of the sale, cessation or transfer of ownership of these properties, the fraction of the annual premiums previously received that has not yet been deducted from the tax base is deducted from the book value of these assets to determine the taxable capital gain or capital loss. Where, in the case of a transfer inter vivos that took place prior to the publication of the decree no. 61-856 of 31 July 1961, amending the decree no. 50-898 of 2 August 1950, the company will have opted, in accordance with the provisions previously in force of article 13 of the latter decree, to maintain the premiums in its favour, the premiums relating to the period subsequent to the date of transfer of ownership will, in addition, become taxable under the conditions of ordinary law.
