France: Tax-Efficient Sectors
Companies operating weekly or fortnightly publications dealing largely with political matters are entitled to draw up a tax-deductible provision into which they can transfer 30% of financial profit. This provision must be used within 5 years and can only be used to finance 40% of the total cost incurred purchasing fixed assets such as equipment, furniture, land and buildings strictly necessary to run the publication. Where the funds are not so used within 5 years they are transferred back to trading income and taxed accordingly. The provision also applies where the publication is owned by an individual (as opposed to a company) and therefore subject to personal income tax (as opposed to corporate income tax). This is a significant fiscal concession and constitutes an enhanced accelerated depreciation allowance the effect of which is to greatly reduce taxable profits. The law is set out in Article 39 of the General Tax Code.