The period for a 40% extra-depreciation (suramortissement) of certain industrial goods has been extended to the 31st December 2016
Last year, a law called Loi Macron (Loi pour la croissance, l’activité et l’égalité des chances économiques) was passed in France. It includes a provision for a 40% extra-depreciation of certain industrial goods, as stated in Article 142. This provision, le dispositif de suramortissement , was originally scheduled to end on the 14th April 2016 but Emmanuel Macron, the Minister of Economy, Industry and Digital Affairs, recently announced that it will be extended to the end of the year.
The law will probably be subject to some amendments which should be made public during the next couple of weeks. However, the Minister has said that these new changes will not be to the detriment of companies. The requirements needed in order for firms to qualify for the extra-depreciation according to the current legislative text are given below.
The 40% extra-depreciation would be deducted from the original value of the investment. This deduction would be spread over the good’s normal lifespan. There are two conditions that must be met if companies want to benefit from the suramortissement measure:
- The goods have to be purchased or manufactured between the 15th April 2015 and the 31st December 2016. Leasing or rental of the goods with an option of purchase would also be eligible.
- The goods have to be new and their lifespan must exceed three years. Also, they are eligible only if they fall into one of the following categories:
- Materials and tools for industrial manufacturing (excluding transport), scientific or technical research, as well as material-handling equipment
- Facilities for water treatment and atmosphere sanitation as well as steam, heat and energy production ; excluding facilities used for activities producing electrical energy that benefit from a regulated buying production tariff
If you think you are eligible in terms of the suramortissement standards and need a reliable accounting expert to take care of your year-end tax report, please contact us via telephone +33 (0) 1 53 93 94 20 or [email protected].
Our team of experts will happily assist you with any queries you might have.