2: Determination of taxable profits

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…

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…