The accounting depreciation arrangement represents an additional taxable income deduction item that concerns SMEs* subject to France’s “réel” (actual) tax regime (normal or simplified), whether subject to corporate tax (“impôt sur les sociétés” - IS) or income tax (“impôt sur le revenu” - IR). No distinction is made between owners or renters.
To benefit from this measure, SMEs must engage in an industrial activity, i.e. one that is directly involved in manufacturing or transforming tangible assets, and for which the role of the equipment is overriding.
The 40% accounting depreciation arrangement concerns 7 types of different assets. These are:
1. robotic and cobotic equipment;
2. additive manufacturing equipment (3D printers);
3. software used for design, manufacture or transformation purposes;
4. integrated machines used for supercomputing;
5. physical sensors that collect data on a company’s production site, production line or workflow system;
6. programmable or numerically-controlled production machines;
7. augmented reality and virtual reality equipment used for design, manufacture or transformation purposes.
For the equipment concerned, the key point to remember is that this measure concerns any numerically-controlled machine or tool, and anything related to robotics.
Assets concerns must either be purchased new or rented, and be subject to a firm order placed as of September 20, 2018, and manufactured between January 1, 2019 and December 31, 2020.
FOR EQUIPMENT LEASING, THE CONTRACT DATE MUST SIMPLY BE LATER THAN DECEMBER 31, 2018.