II: Industrial and commercial profits

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…

1. The depreciation of capital goods, other than residential buildings, building sites and premises used for the exercise of the profession, acquired or manufactured as from 1st January 1960 by industrial companies, may be calculated according to a degressive depreciation system, taking into account the depreciation period in use in each type of industry. A decree of the Conseil d’Etat sets the terms and conditions of degressive depreciation. Degressive depreciation…

The coefficients used to calculate the declining balance depreciation are increased to 2, 2, 5 and 3 respectively depending on whether the normal useful life of the equipment is three or four years, five or six years, or more than six years as regards: 1° (Expired); 2° a. Energy-saving equipment and renewable energy production equipment acquired or manufactured by companies from 1 January 1977 that appear on a list drawn…

The declining balance depreciation rates defined in 1 of Article 39 A are increased by 30% for equipment for the production, sawing and valorisation of forestry products, acquired or manufactured between 13 November 2013 and 31 December 2016 by primary wood processing companies. For the purposes of the first paragraph, primary wood processing companies are defined as companies whose main activity consists of manufacturing intermediate products from logs. The benefit…

The coefficients used to calculate the diminishing balance depreciation of equipment and tools used in scientific and technical research operations mentioned in a of II of article 244 quater B are increased to 1, 5, 2 and 2.5 respectively, depending on whether the normal useful life of these assets is three or four years, five or six years or more than six years.

Energy-saving equipment and renewable energy production equipment that appear on a list drawn up by joint order of the Minister for the Budget and the Minister for Industry, acquired or manufactured before 1 January 2011 may be subject to exceptional depreciation over twelve months from the date they are brought into service.

Automatically controlled reprogrammable multi-application manipulators, programmable in three or more axes, which are fixed or mobile and intended for use in industrial automation applications, acquired or created between 1 October 2013 and 31 December 2016, may be subject to exceptional depreciation over twenty-four months from the date on which they are put into service. The first paragraph applies to small and medium-sized enterprises, within the meaning of Commission Regulation (EU)…

Additive manufacturing equipment acquired or created between 1 October 2015 and 31 December 2017 may be subject to exceptional depreciation over twenty-four months from the date on which it is brought into service. The first paragraph applies to small and medium-sized enterprises, within the meaning of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107…

At the close of each financial year, the sum of depreciation actually applied since the acquisition or creation of a given item may not be less than the cumulative amount of depreciation calculated using the straight-line method and spread over the normal period of use. If the company fails to comply with this requirement, it permanently loses the right to deduct the portion of depreciation that has been deferred in…