To learn more about overpaying, do not hesitate to seek advice from SR Conseil Grenoble
The principle of overpayment
This exceptional measure allows companies to depreciate the assets acquired from April 15, 2015 to April 14, 2016 to the tune of 140% of their value . This ovamortization is distributed on a straight-line basis over the useful life of the asset, which is as interesting in terms of cash flow as in terms of return.
At the tax level , this translates into a subsidy of about 30% of the value of the good (40% * 33%) for companies subject to a standard corporate tax rate (IS). The additional depreciation will be spread over the entire period of use of the eligible property. If the latter is 4 years, the additional depreciation will be equal to 10% each year (3.4% of the cost price per year). A property purchased € 100,000 during the period concerned will therefore provide a tax saving of € 13,000 in addition to basic depreciation.
Scope of the measure
Any company is eligible for overpayment regardless of size, industry or taxation. This measure relates to five categories of productive investments to which the declining balance depreciation provided for in Article 39A applies:
- treatment plants Water and Clean Air
- equipment and tools for scientific or technical research operations , in the laboratory and in the factory
- installations producing steam, heat or energy (generators, bakers’ ovens …). It should be noted that the installations used in the context of an electricity production activity benefiting from a regulated tariff are not concerned.
- manufacturing and processing equipment and tools such as automation and robotic equipment , combine harvesters , fishing vessels , etc.
Inseparable software for production, research and processing assets and those that contribute directly to these operations are also eligible for over-depreciation.
Over-depreciation applied, how does it go?
A company subject to corporation tax (corporate income tax) buys 1 June 2015 a machine tool with a 300 000 € HT depreciable value of 8 years (12.5% annually). Since the production tool is eligible and acquired during the period provided for by the excess depreciation measure, the company may deduct (in addition to normal depreciation) € 5,000 per year in 2015, € 15,000 per year between 2016 and 2022 and € 10,000 in 2023. This represents an additional € 120,000 of its taxable base and € 39,600 in tax savings.