CEGID GROUP Cegid, a key player in the digital transformation of the private and public sectors, supports companies and public entities in managing their finances, taxes and human resources. As the fiscal year draws to a close, staff at Cegid are working hard to ensure that their customers wishing to benefit from the exceptional depreciation offered under the Macron law on eligible investments can do so properly before the cutoff dates. This potentially concerns all companies.
As part of the Macron law, the French Senate adopted an exceptional 'additional depreciation' measure applying to certain industrial assets. Having entered into force on April 15, 2015 and valid for one year, this new tax measure allows companies to depreciate their newly acquired industrial assets by an additional 40%, which in turn reduces the taxable income of a business owner or a company subject to corporate income tax. This represents an estimated tax subsidy for companies of 13% of the value of these investments.
What many companies, and particularly SMEs, do not realize is that if they choose to not implement the Macron tax deduction by the close of the fiscal year during which the industrial asset was acquired or manufactured, their decision is definitive. They will not be able to correct their filing later to include the tax deduction which they chose to forego. The majority of French companies close their books on December 31. They therefore now have less than two months to decide to apply the Macron deduction to investments they made in 2015. Companies will, however, still have the choice as to whether they apply the additional depreciation under the Macron law to their industrial assets acquired between January 1 and April 14, 2016.
Cegid support
Cegid's solution Yourcegid Finance Fixed Assets includes a Macron Law module. The ready-to-use module facilitates and automates the treatment of the additional depreciation tax measure, regardless of the complexity of the deduction (management of asset components, capital leases, etc.). Using the software's multiple controls, customers can accurately monitor their additional depreciation and run simulations that will immediately calculate expected tax savings. They can also use the tax filing assistant.
The single secure application offers many benefits including time savings, data reliability, traceability and easily justifiable calculations in the event of a tax audit.
Cegid began informing companies early on of this new tax advantage of which many SMEs were unaware.
During the Cegid On Tour 2015, which took place from June 9 to October 22, Cegid met with close to 300 customers and prospects around many cities in France. Cegid's experts explained the legislative framework of the Macron Law and how it is handled in Yourcegid Finance Fixed Assets.
All of Cegid's experts have been trained in this new legislation in order to offer optimal support to customers during the implementation phase, both on the telephone and through on-site visits by trainers and consultants.
In response to customer demand, Cegid has created a training program presenting the Macron law's legal framework and principles governing its use in the Yourcegid Finance Fixed Assets application.
An informative guide on the Macron law is available on Cegid's website along with a schedule of webinars covering this topic.
Key points of the Macron law on additional depreciation
The Macron law allows for companies to depreciate their eligible industrial assets by an additional 40%, therefore offering companies an additional tax deduction.
This represents an estimated tax subsidy for companies of 13% of the value of these investments.
Investments eligible for the 40% additional depreciation are industrial assets that can be depreciated using the accelerated depreciation method and that fall into the following categories:
- equipment and tools used for manufacturing production or transformation
- handling equipment,
- sewage treatment or air cleaning facilities,
- steam, heat or energy producing systems,
- scientific and technical research equipment and tools,
- software that operates the eligible hardware or that contributes to manufacturing or transformation, To this end, the acquisition of Yourcegid Manufacturing, Cegid's production management software, is eligible.
- The assets must be new and must have been acquired between April 15, 2015 and April 14, 2016. They may have been acquired pursuant to a rental agreement with a purchase option or under a capital lease.
For example, if a company buys a machine worth €100,000 that has an estimated life of five years, it would normally recognize a depreciation expense of €20,000 each year. Under the new law, the company is permitted to depreciate an additional €40,000 (100,000 x 40%), which will reduce its taxable income by as much.
To learn more, download Cegid's guide to the Macron law:
http://www.cegid.fr/finance/comprendre-et-beneficier-de-la-loi-macron-sur-l-amortissement/r1-6381.aspx (in French)
Cegid is a leading player in the digital transformation of companies, providing cloud services and enterprise software to private companies and public entities alike.
Cegid addresses the management needs of companies and public entities of all sizes in the fields of finance, taxation and human resources, and offers industry-specific solutions to companies in the manufacturing, trade, services and retail sectors as well as to the accounting profession. Based on MoBiCloTM, its technological concept combining Mobility, Business Intelligence and the Cloud, Cegid's innovation strategy integrates the new ways in which people use software.
Cegid is an international group with more than 2,000 employees, 27 locations in France, and 15 subsidiaries and offices worldwide. Cegid serves more than 120,000 clients and 400,000 users, including over 120,000 in SaaS mode. In 2014, its revenues totaled €267 million. Cegid is listed on Euronext Paris.
Details of Cegid product lines can be found (in French) on our site: www.cegid.fr
To learn more about Cegid, please visit: www.cegid.com
Press contacts
Burson Marsteller i&e - Cegid press service - +33 (0)1 56 03 14 62 - cegid.presse@bm.com
Cegid: Isabelle Emerard +33 (0)4 26 29 52 39 - i.emerard@cegid.fr
Cegid Group SA issued this content on 2015-11-24 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2015-12-22 09:15:09 UTC
Original Document: http://en.cegid.com/News-medias/Press-releases/Only-one-month-left-for-SMEs-to-benefit-from-the-additional-depreciation-offered-under-the-Macron-law-Cegid-steps-up-its-support-as-customers-take-advantage-of-this-new-tax-benefit
