Calculate French amortissement schedules for business assets using linear or degressive methods.
What is the difference between linear and degressive depreciation?
Linear depreciation spreads the cost evenly over the useful life (e.g., 20% per year for 5 years). Degressive depreciation applies a higher coefficient to the declining balance, allowing larger deductions in early years. The degressive method is available for assets with a useful life of at least 3 years, purchased new.
What are the standard useful lives for common assets?
Common useful lives include: Buildings (20-50 years), Office furniture (10 years), Vehicles (4-5 years), Computer equipment (3 years), Software (1-3 years), Industrial equipment (5-10 years), Patents and licenses (5 years or licence duration). These can vary by industry and specific usage.
What are the degressive coefficients?
The degressive coefficient depends on the useful life: 1.25 for assets with 3-4 year useful life, 1.75 for assets with 5-6 year useful life, and 2.25 for assets with 7+ year useful life. The degressive rate equals the linear rate multiplied by the coefficient.
How do I choose between linear and degressive?
Choose degressive if you want to maximize early-year deductions to reduce taxable profit sooner (common for profitable companies). Choose linear for a predictable, even expense pattern (simpler accounting) or when the asset genuinely loses value at a constant rate. Note: degressive is only available for new assets; used assets must use linear.
Compliance: This calculator uses official French tax rates for 2025. Results are indicative — for complex situations, consult a tax professional.
How French businesses write off the cost of equipment, vehicles, and other assets over time
What is amortissement in French tax?
Amortissement (depreciation) lets you spread the cost of a business asset over its useful life instead of deducting it all in one year. If you buy a computer for €2,000 with a 3-year life, you deduct €667 per year. This reduces your taxable profit each year the asset is in use. Only businesses under the régime réel can use amortissement — auto-entrepreneurs cannot.
What assets can be depreciated?
Any tangible asset used for business with a value above €500 HT (excluding VAT) and a useful life of more than one year. Common examples: vehicles (4–5 years), office furniture (5–10 years), computers (3 years), software (1–3 years), and buildings (20–50 years). Assets below €500 HT can be expensed immediately as a charge.
What is the difference between linear and declining balance depreciation?
Linear depreciation (amortissement linéaire) spreads the cost evenly — a €10,000 machine over 5 years means €2,000/year. Declining balance (amortissement dégressif) front-loads deductions using a multiplier (1.25x for 3–4 years, 1.75x for 5–6 years, 2.25x for 7+ years). On the same machine, the first-year deduction would be €3,500 using dégressif.
Are there limits on vehicle depreciation?
Yes. The deductible portion of a passenger vehicle (véhicule de tourisme) is capped at €18,300 for low-emission vehicles and €9,900 for high-emission vehicles (above 130g CO₂/km). If you buy a car for €35,000, you can only depreciate €18,300 over 4–5 years. Electric vehicles get a higher cap of €30,000. Commercial vehicles have no cap.
What is the suramortissement (super-depreciation)?
The suramortissement is an extra 40% deduction on top of normal depreciation for certain qualifying assets — mainly industrial equipment, digital transformation tools, and ecological investments. On a €50,000 qualifying machine, you can deduct an additional €20,000 over its useful life. This benefit is available to businesses of all sizes under certain conditions.
How do you record depreciation in your accounts?
Depreciation is recorded as a dotation aux amortissements (depreciation charge) in your profit and loss account, reducing your taxable profit. The asset stays on your balance sheet at its original cost minus accumulated depreciation (valeur nette comptable). Your expert-comptable normally handles this as part of the annual accounts preparation (bilan annuel).
DGFiP-Aligned: Based on 2025 DGFiP rates and thresholds. For personal advice, speak to a qualified expert-comptable (chartered accountant).
Disclaimer: This calculator provides estimates based on current French tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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