Deductible depreciation capped at €9,900 for cars emitting more than 200 g CO2/km

Article 17 of the 2006 Finance Act amends Article 39, 4 of the General Tax Code: for passenger cars emitting more than 200 grams of CO2 per kilometre, depreciation deductible from taxable profit is calculated on a fraction of the price capped at €9,900, instead of €18,300 for other cars. The same cap applies to rents for cars under finance leases or rentals of more than three months. The measure covers vehicles acquired from 1 January 2006 and first registered after 1 June 2004. The Government's bill set €12,300; the €9,900 figure results from an amendment by MP Philippe Auberger.