A special deduction on income tax or corporation tax in favour of press companies is provided for by the articles 39 bis A and 39 bis B of the General Tax Code.
This deduction applies to businesses that operate:
- a daily newspaper;
- a publication with a maximum monthly frequency and devoted largely to the IPG;
- an online press service devoted largely to the IPG, or developing professional information or promoting access to knowledge and training and the dissemination of thought, debate of ideas, general knowledge and scientific research.
In all cases, the character of publication or press site and the content of IPG must be recognised by the Joint Commission on Publications and News Agencies (CPPAP).
These securities are allowed to constitute a provision deductible from taxable income, in order to cover various investment expenses.
There are two conditions:
- provisioned expenditure must take place before the end of the fifth year following the provision;
- Only expenditure on the part of newspapers and publications printed by enterprises in a Member State of the European Union is taken into account.
The amounts deducted are limited:
- 30% of the profit for the year for the generality of publications and for online press services;
- 60% for daily newspapers and “similar publications” (this applies to regional weekly headlines). This percentage is increased to 80% for daily newspapers with a turnover of less than €7,600,000.
The amounts deducted must represent only a fraction of the cost price of the fixed assets, i.e., not more than:
- 40% for the generality of publications and for online press services;
- 90% for daily newspapers and similar publications.
The benefit of the provision 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.
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