French General Tax Code
In force1. 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 rates are obtained by multiplying straight-line depreciation rates by a coefficient set at:
a. 1.25 when the normal useful life is three or four years;
b. 1.75 when this normal period is five or six years;
c. 2.25 when this normal period is more than six years.
Declining balance depreciation is applied annually, within the limits of the ceilings, to the residual value of the asset to be depreciated.
These depreciation methods correspond to traditional daily use in terms of duration; in the case of continuous use of the equipment in question, the depreciation rates are increased.
2. The provisions of 1 are applicable under the same conditions:
1° To hotel investments, movable and immovable;
2° To industrial buildings whose normal period of use does not exceed fifteen years and whose construction is completed after the date of publication of the loi n° 62-873 du 31 juillet 1962;
3° Communications satellites;
4° Buildings exclusively intended to host exhibitions and congresses and equipment allocated to these same buildings.
3. (Expired).
4. (Transferred).
