French General Tax Code
In forceCapital gains subject to the articles 39 duodecies to 39 quindecies and realised on the disposal of inland waterway vessels used for the transport of goods, in operation by a river transport company or by a company whose business is to hire such vessels, are exempt from tax. To benefit from the exemption, the company must have acquired, during the last financial year, or have undertaken to acquire within twenty-four months of the disposal, for the needs of its business, one or more new or second-hand inland waterway vessels assigned to the transport of goods at a price at least equal to the disposal price.
The boat transferred must, on the date of the transfer, be the subject of a valid navigation permit.
The boat acquired as a replacement must satisfy one of the following conditions:
1° Its construction has been completed for no more than twenty years and it must have been built at a more recent date than the boat transferred;
2° It meets additional capacity conditions.
The total amount of the exemption granted under this article may not exceed €100,000 per disposal.
If the sums reinvested are less than the disposal price, the amount benefiting from the exemption is limited to the product of the capital gain multiplied by the ratio between the disposal price allocated to the acquisition of the vessel and the totality of this price. The adjustment to be made is included in the taxable income for the financial year in progress at the end of the twenty-four month period set out in the first paragraph, increased by an amount equal to the product of this adjustment by the late payment interest rate provided for in Article 1727.
Where the business referred to in the first paragraph is a company subject to the taxation system provided for in Article 8, the condition relating to the nature of the business of this business must also be met by its legal entity partners.
The undertaking referred to in the first paragraph must be appended to the income tax return for the financial year in which the disposal takes place.
The first paragraph does not apply to capital gains subject to the provisions of Article 223 F.
The benefit of the provisions of the first paragraph is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.
The reinvestment may be made under a leasing contract entered into within the period referred to in the first paragraph. In this case, the sums reinvested referred to in the seventh paragraph are equal to the sum of the rents actually paid, for their share taken into account to determine the purchase price, plus the purchase price paid at the end of the contract. Where applicable, the adjustment referred to in the same seventh paragraph is then included in the taxable income for the financial year during which the contract ends, increased by an amount equal to the product of this adjustment by the rate of late payment interest provided for in article 1727.
