Extension of the exceptional investment allowance: A guide for users
The exceptional deduction in favor of investment, provided for inArticle 39 decies of the French General Tax Codeandcreated byArticle 142 of Law no. 2015-990 of August 6, 2015 for growth, activity and equal economic opportunitytosupport and accelerate industrial investment by all companies regardless of the operating mode, which applies to companies subject to income tax or corporate income tax for goods acquired or manufactured from April 15, 2015 to April 14, 2016, has been extendedto April 14, 2017.
To help companies make the most of the scheme, the French government, with the help of trade unions and professional federations (including Syntec Numérique), has produced a brochure presenting the scheme and giving practical examples.
If you have any doubts about the eligibility of your investment, you can contactthe tax authorities.
The article concerns an extension of an exceptional tax deduction for qualifying business investment and the accompanying user guidance. Such mechanisms are designed to influence investment decisions, but their conditions depend on precisely defined expenditure, periods and beneficiaries.
Finance teams should avoid assuming that a measure described in an older announcement still exists in the same form. They need to identify the applicable financial year, eligible assets, depreciation treatment and supporting documentation, then cross-check those points against the relevant legislation and official tax guidance.
Financial and tax measures must be understood in their correct legal and accounting context. Businesses should confirm which entities are eligible, the years concerned, the required documentation and any limits or exceptions. In international groups, coherence between contracts, actual functions and financial records is particularly important. A historical policy discussion can explain why rules were proposed, but it cannot establish the treatment of a present transaction. Specialist review is appropriate where the amounts or cross-border implications are significant.
