Accountancy in France

>> Allowances in France

Allowances are now very limited in their scope in France.

Depreciation of fixed assets can be accelerated for a limited list of assets.

Usual tax rates of depreciation issued  by the tax administration are as such:

Buildings 2 – 5%
Material and equipment 10 – 20%
Cars, trucks… 20 – 25%
Furniture and fittings 5 – 20%
Computers (PC) 33,3%

Items under 500 € may be directly  charged in the accounts of the year even  if matching the definition of an asset.


Tax Credits

  • Research and Development Tax credit

Available for any firm (including subsidiaries from foreign firms), this amounts to 30% of yearly expenses with a limit of 100 million euros. Yearly Expenses mainly include payroll and benefits with a mark-up of 50% for expenses (even though no expenses are booked).

  • The CICE « Crédit d’Impôt Compétitivité Emploi »

This is a direct reduction in social contributions equaling 6% of gross salaries. This tax credit is computed based on the gross salaries paid during the calendar year and not exceeding 44K€ per employee.

  • Tax credit for phonographic works (20% of expenses), for movies (20% of expenses) and video games (20%  of expenses)
  • Tax credit for recent innovative firms (less than eight years). These firms must expense in research charges, more than 15% of their total charges for taking benefit of a three years’ tax exemption, then a two-year 50% tax relief period,
  • Tax credit for firms located on a “Pôle de compétitivité” (Competitive research site) and taking part in an agreed project. These firms will also take benefit of a three years’ tax exemption, followed by a two-year 50% tax relief period.

Latest version updated 16th October 2017

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