What useful life should be considered when estimating the TAB factor of an intangible asset?

Amortisation of intangible assets is not always tax deductible. Its deductibility depends on the corporate income tax legislation of single countries. Most countries define maximum amortisation rates or minimum number of years in which the amortisation of intangible assets can be deducted, if at all. This page displays the legal tax amortisation periods of the main types of intangible assets.

Summary Table

CountryPatentsTechnologyTrademarkCustomer relationships GoodwillLast update
FranceRUL (≥5)RUL (≤5)no TABno TABno TABApr 2016

Further Detail and Source Legislation

Tax amortisation of intangibles in France is explained in the French Income Tax Law.[1]

Chapter 2[2] of Title 1 of Subsection Amortisations of Section Corporate Income defines which assets are subject to tax amortisation.

According to paragraph 320, as a general rule most of the intangible assets are not amortised and only in exceptional circumstances can the value of an intangible asset be deductible. The following intangible assets are explicitly mentioned by the Law:

  1. Patents can be amortised over a minimum period of 5 years, provided that the same depreciation accounting is retained (Paragraph 380).
  2. Development cost and software development costs must be amortised over a maximum period of 5 years (Paragraph 440).
  3. Goodwill is not subject to tax amortisation (Paragraph 330).

  1. ^ French Income Tax Law
  2. ^ Chapter 2 of Title 1 of Subsection Amortisations of Section Corporate Income of the French Income Tax Law

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