Section II: Taxable income

I. – Where credit institutions, finance companies or investment firms mentioned in article 38 bis A purchase or subscribe fixed-income securities for a price different from their redemption price, the profit or loss corresponding to this difference increased or decreased, as the case may be, by the accrued coupon on purchase is spread over the period remaining until redemption. This apportionment is made on an actuarial basis by attaching to…

I. – As an exception to the provisions of articles 38, 238 septies B and 238 septies E, when insurance and capitalisation companies, supplementary professional retirement funds mentioned in Article L. 381-1 of the Insurance Code, the supplementary professional retirement mutuals or unions referred to in Article L. 214-1 du code de la mutualité or the institutions for supplementary professional retirement mentioned in article L. 942-1 of the Social Security…

By way of exception to the provisions of Article 38, interest rate or currency swaps entered into by credit institutions, finance companies or investment firms referred to in article 38 bis A and which are allocated to the hedging of financial instruments valued at their market value or to the specialised management of a trading activity, are valued at their market value at the close of each financial year or…

When a leasing company leases a business, a craft business or one of their non-depreciable intangible elements or shares in commercial companies that are not negotiable on a regulated market under the conditions provided for in 3 or 4 of Article L. 313-7 of the Monetary and Financial Code, the sums corresponding to the share of the rent taken into account for the determination of the agreed sale price for…

As an exception to the provisions of article 38, where a life insurance contract has been taken out with an insurance company by a company on the life of a manager or a person playing a decisive role in the running of the business, the profit resulting from the compensation for the economic loss suffered by the company following the death may be distributed in equal shares over the year…

The warehousing of agricultural production by a farmer subject to an actual taxation system with a third party and then, where applicable, its repossession does not result in the recognition of a profit or loss for the determination of taxable income, provided that the agricultural products remain entered as stocks on the farmer’s balance sheet. For the application of the first paragraph, a warehousing agreement is the contract by which…

I. – Notwithstanding the provisions of 1 of Article 38, the taxable income of the Banque de France is determined on the basis of the accounting rules defined pursuant to Article L. 144-4 of the Monetary and Financial Code and the agreement referred to in article L. 141-2 of the same code. The taxable income of the Banque de France is established: 1° After deduction of the amounts mentioned in…

When the rebates granted by a société coopérative agricole mentioned in Article L. 521-1 of the French Rural and Maritime Fishing Code to a cooperative member takes the form of the allocation of shares in that company, taxation of the income booked in respect of these rebates by that member may, on option, be subject to a deferral of taxation until the date of transfer, transmission or contribution of the…

I.-Capital gains realised on exchanges of agricultural land, carried out as part of a rural land development scheme within the meaning of article L. 121-1 of the Code rural et de la pêche maritime by sociétés d’aménagement foncier et d’établissement rural and sociétés whose principal activity is agricultural, within the meaning of article 63 of this Code, which are liable for corporation tax may, on option, be the subject of…

1. Net profit is established after deduction of all expenses, which include, subject to the provisions of 5, in particular: 1° Overheads of all kinds, staff and labour expenses, rent on buildings leased by the company. However, remuneration is only allowed as a deduction from profits insofar as it corresponds to actual work and is not excessive in relation to the importance of the service rendered. This provision applies to…