French General Tax Code
In force1. Companies operating an online press service, recognised pursuant to Article 1 of Act no. 86-897 of 1 August 1986 reforming the legal status of the press, developing professional information or promoting access to knowledge and a ̀ the formation and dissemination of thought, the debate of ideas, general culture and scientific research, are authorised to set aside a provision deductible from taxable income for financial years ending on or after 1 January 2018 and until 31 December 2023, with a view to meeting the following expenses:
a) Acquisitions of equipment, furniture, land and buildings, insofar as these assets are strictly necessary for the operation of the online press service;
b) Acquisition of shareholdings in companies whose main activity is the operation of an online press service mentioned in the first paragraph of this 1 or in companies whose main activity is to provide information services for these companies;
c) Establishment of databases and acquisition of the equipment necessary for their use or for the transmission of such data;
d) Capitalised expenditure attributable to research, technological development and innovation for the benefit of the on-line press service;
The companies mentioned in this 1 may deduct capital expenditure incurred for the same purpose.
2. The sums deducted pursuant to 1 of this article are limited to 30% of the profit for the financial year concerned. For the application of this 2, the limit is calculated on the basis of the profit from the online press service alone. The sums deducted from taxable profits pursuant to 6 are not taken into account when calculating the limit provided for in the second sentence of this 2.
3. The sums deducted or withheld from taxable profits pursuant to 1 may only be used to finance 40% of the cost price of the fixed assets defined therein.
4. Online services that are pornographic, perverse or incite violence are excluded from the benefits of this article.
5. Fixed assets acquired using the profits or provisions mentioned in this article are deemed to be depreciated for an amount equal to the fraction of the purchase price or cost price which has been taken from the said profits or provisions.
The sums deducted in application of 1 and allocated to the acquisition of non-depreciable assets are deducted in equal parts from the taxable profits for the financial year in which these assets are acquired and for the four following financial years.
> The sums deducted in application of 1 and allocated to the acquisition of non-depreciable assets are deducted in equal parts from the taxable profits for the financial year in which these assets are acquired and for the four following financial years. 6. Without prejudice to the application of the fifteenth paragraph of 5° of 1 of article 39, provisions not used in accordance with their purpose before the end of the fifth year following the year in which they were set up are added back to the profits subject to tax for the said year, plus an amount equal to the product of these provisions by the rate of late payment interest provided for in article 1727.
7. The benefit of the provision referred to in 1 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.
