TLDR: Leasing or lease-to-own (LOA) contracts for ships may benefit from the optional tonnage tax regime (Art. 209-0 B CGI), exceptional deductions for ecological equipment (Art. 39 decies C CGI) under retrocession conditions, deductions for investments in new ships (40% or 85% depending on the period), specific depreciation rules (Art. 39 C CGI), and special tax treatment of capital gains (Art. 39 duodecies CGI).
Optional tonnage tax regime
Leasing or LOA contracts for ships are eligible for the flat-rate tonnage tax regime (Art. 209-0 B CGI), provided that the lessee or the lessee under a finance lease opts for this regime and that the contracts are concluded in accordance with the provisions of Art. L. 313-7 of the Monetary and Financial Code. This regime also applies to contracts where the asset remains the property of the lessor, with an option to purchase at a price that takes into account the rentals paid.
Exceptional deductions for ecological equipment
If the lessee opts for the tonnage tax regime, the lessor may apply the exceptional deduction for equipment enabling the use of clean energy (Art. 39 decies C CGI). The tax advantage must be fully passed on to the lessee in the form of a reduction in rentals, applied at the same rate as the deduction. In the event of non-compliance, the parties must regularise the application of the scheme.
Deductions for investments in new ships
For leasing or LOA contracts for new ships, exceptional deductions are provided:
- 40% of the original value (excluding financial costs) for contracts concluded between 15 April 2015 and 14 April 2017, spread over the normal useful life (Art. 39 decies CGI).
- 85% of the original value (excluding financial costs) for contracts concluded from the date set by the decree of Art. 42 of Law No. 2023-1322 of 29 December 2023 and until 31 December 2027, spread pro rata temporis (Art. 39 decies C bis CGI).
Depreciation and tax regime
Companies leasing assets under leasing or LOA contracts may, by option, spread the depreciation of the assets over the duration of the corresponding contracts (Art. 39 C CGI). For companies acquiring a ship from a maritime shipping company to lease it out, depreciation is calculated on the reimbursed expenses, without exceeding 50% of the cost of the ship.
Treatment of capital gains
Capital gains realised on the transfer of a leasing contract are subject to the short-term capital gains regime for the fraction corresponding to the theoretical depreciation (calculated linearly on the acquisition price of the asset, net of the purchase option price, and for a period equal to that of the contract). For companies subject to corporate income tax, these capital gains are taxable in the ordinary result (Art. 219 CGI). The tax regime for capital gains does not apply to leasing companies or companies whose main activity is the leasing of equipment.
Assimilation to fixed assets
Leasing and LOA contracts for ships are assimilated to fixed assets for lessees if the rents have been deducted for the determination of non-commercial profit (Art. 93 quater CGI).