In concrete terms, what is a "suramortissement"?
The suramortissement or supplementary depreciation is an exceptional tax depreciation measure on eligible productive investments, enabling companies to depreciate the asset for tax purposes over a percentage of its value. It applies to certain eligible assets for certain companies.
In other words, it allows you to reduce your taxable income by x% of the cost price of your investments.
- The amount is deducted from taxable income at the rate applied.
- Tax savings are definitive and can be combined with other schemes
This scheme enables companies to invest in certain categories of goods, according to the priorities set by the government. Eligible investments mainly concern equipment required for production or processing, such as machine tools, tractors, etc.
In 2020, the priorities are :
- Digital transformation in industrial SMEs
- The least polluting trucks
- Some shipowners' equipment, etc...
The depreciation allowance must not be confused with the accounting method of depreciation. Suramortissement is an entirely fiscal provision: it is never accounted for. It only allows the company to deduct a percentage of the value of its investment.
This percentage is spread over the asset's useful life. For trucks, buses or coaches, the scheme has been revised with the 2019 Finance Act. The rates range from 20% to 60% of the original value for all assets acquired before December 31, 2021.
Suramortissement for less polluting trucks in 2019
Over-amortization of less-polluting trucks in 2020
Which vehicles are eligible for the bonus for less polluting trucks?
L'Article 61 of French Finance Act no. 2019-1479 of December 28, 2019 for 2020 allows companies to deduct between 20% and 60% of the original value of vehicles with a gross vehicle weight rating (GVWR) of 2.6 tonnes or more that exclusively use one or more of the following energies:
- Natural gas and biomethane fuel
- ED95 fuel composed of a minimum of 90.0% ethyl alcohol of agricultural origin.
- Electrical energy
- Hydrogen
In additionarticle 62 of law no. 2019-1479 of December 28, 2019 on finance for 2020 extended the exceptional deduction applicable to heavy goods vehicles and light commercial vehicles to those using :
- For their engines, a combination of natural gas and diesel (type A1 dual-fuel engines).
- Or whose engines are designed and approved for exclusive use of B100 fuel (100% fatty acid methyl esters).
The scheme applies to vehicles purchased or leased (lease with purchase option or finance lease) from January 1, 2020 to December 31, 2021.
Good to know: For vehicles using B100 fuel, only those with engines designed and approved for exclusive and irreversible use of B100 are eligible. Exclusive use of B100 is guaranteed by technical proof provided by the manufacturers of the vehicles concerned.
