French Degressive Depreciation

Degressive depreciation is used to compute the French tax depreciation. The French Degressive depreciation method is similar to the declining balance method. This method uses Acquisition/Pro-rata as the depreciation rule. The depreciation amount for the first year is prorated based on the number of months remaining for the fiscal year.

Formula: PB * ((FC_RATE / AL)~(1 / (AL - CEIL(CP) + 1)))

Depreciation Period: Annually

FC_RATE is the Fiscal Coefficient Rate provided by the French Government. The rate should be manually entered and converted to decimal format. A new Degressive depreciation method must be created for each new rate.

In the Tax Method, make sure that you have set the values to the following fields:

• Depreciation Rules: Pro-rata

• Depreciation Start Date: 1^st day of the Month

The annual depreciation is computed as:

PB * MAX(Degressive Rate, Linear Rate)

The following sample shows the expected depreciation values using the formula for degressive depreciation, with a Fiscal Coefficient Rate of 1.75.

General Notices