Paris - Bastia - Porto-Vecchio

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Consequences of the coronavirus pandemic (COVID-19) on the allocation of the tax credit for investment in Corsica

The tax credit for investment in Corsica expires on December 31, 2020. Will companies that have not completed their work by this date risk being denied the tax credit?

Reminder of the system

Provided for in Article 244 quindecies of the French General Tax Code, this mechanism allows small and medium-sized companies that make certain investments to benefit from a tax credit of 20% of the cost price of the investments.

This rate is increased to 30% for VSEs under the following conditions:

The tax regime of the mixed compensatory benefit deemed unconstitutional, but not repealed (Cons. const. 31-1-2020 no. 2019-824 QPC)

Seized by the Council of State with a QPC, the Constitutional Council, in a decision of January 31, 2020, ruled that the tax regime of the mixed compensatory benefit provided for in paragraph II of Article 199 octodecies of the CGI resulting from Law 2004-439 of May 26, 2004 on divorce was unconstitutional, while specifying however that the provisions declared contrary to the Constitution were no longer in force (Cons. const. 31-1-2020 No. 2019-824 QPC).

The tax reduction would therefore remain excluded today in the case of a mixed compensatory benefit, until a new decision of the Constitutional Council.

Pacte Dutreil: The Conseil d'Etat overturns the criteria set by the Administration for assessing the preponderance of a commercial activity

A company with a mixed activity (civil activity and operational activity) can benefit from the provisions of Article 787 B of the CGI if the operational activity is preponderant.

In order to assess the predominant nature of the operational activity, the administrative doctrine uses two cumulative criteria: 

Coronavirus (Covid-19): suspension of time limits for tax litigation

Order 2020-306 of 25 March 2020, published in the Official Journal of 26 March 2020, lays down the principle, in Article 10 of Title II, of a freeze on procedural deadlines, which runs from 12 March to 24 June 2020.

This order includes specific measures for tax audits, which have been commented on by the French tax authorities in its BOFIP documentation (BOI-DJC-COVID19-20-20200403).


Marie-Paule DIONISI-NAUDIN est avocate d’affaires, spécialisée en droit fiscal et droit douanier.



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