Specific cap on income tax reductions for overseas investment (Girardin)

Article 87 of the finance act for 2009 creates Article 199 undecies D of the General Tax Code. The total income tax reductions for overseas investment (Articles 199 undecies A and 199 undecies B) that can be used in a given year is capped at €40,000. Some reductions for productive investments are counted for only 40% or 50% of their amount, and a separate cap applies to operators investing directly for their business. By option, taxpayers can instead use a limit of 15% of their taxable income. The cap applies to investments made and works completed from 1 January 2009, except for approval applications and operations started before that date.