- Exceptional Depreciation Of Investment By Businesses In SMES
- January 13, 2016 | Authors: Nicolas Andre; Siamak Mostafavi
- Law Firm: Jones Day - Paris Office
- Article 81 of the 2015 Amending Finance Bill adjusts for the second time the exceptional depreciation for investment in innovative small and medium-sized enterprises (SMEs), in order for this regime to comply with the EU rules on State aid following the authorization by the European Commission under a decision dated November 5, 2015 (SA.40725).
Under this regime, first introduced into article 217 octies of the FTC by the 2013 Amending Finance Bill, businesses (whatever their size) are allowed to spread the depreciation of investments in innovative SMEs over a period of five years (please see our January 2015 French Tax Update for further details).
The 2015 Amending Finance Bill amends the scope of the exceptional depreciation, by providing inter alia that qualifying innovative SMEs also need not to have been operating yet in any market or to have been operating in any market for less than 10 years following their first commercial sale. In addition, the exceptional depreciation is extended to investments in the so-called unregulated partnership companies (sociétés de libre partenariat) created by the "Macron" law for growth and activity.
To the extent this regime was pending authorization by the European Commission, the 2015 Amending Finance Law marks the definitive entry into force of this scheme, which aims to provide better access to funding for high-growth-potential undertakings.