Taxation and social contributions

Implementation of the France Ruralités Revitalization (FRR) zoning on July 1, 2024

Publié le 28 juin 2024 - Mise à jour le 24 juillet 2024 - Directorate for Legal and Administrative Information (Prime Minister)

At 1er In July 2024, the new France Ruralités Revitalization (FRR) zoning will replace the Rural Revitalization Areas (RRAs). The aim of this change is to increase the attractiveness of vulnerable rural areas. It should be noted that some municipalities not reclassified as FRR zones will remain in ZRR.

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Image 1Crédits: forcdan - stock.adobe.com

In order to provide more tailored support to vulnerable rural areas and to promote the establishment of companies in these areas, the new RRF zoning replaces the RRZs and strengthens the tax exemptions for companies located in these areas.

FYI  

Discover with our simulator if your municipality is classified in an FRR or an ZRR.

What does the new FRR zoning change?

This reform, which is enshrined in the 2024 budget law, will apply to more than 17,700 municipalities in mainland France and overseas from 1er July 2024.

France Ruralités Revitalization replaces the ZRRs, the employment pools to be revitalized (BER) as of December 31, 2024 and the rural business revitalization zones (ZORCOMIR).

It will include 2 levels of zoning:

  • FRR zones (also called FRR “stand”);
  • FRR + boxes (from 2025), intended for municipalities most in difficulty. Increased aid will be granted to companies located in these territories.

To delimit these areas, population density and per capita disposable income were the 2 classification criteria used.

FRR zoning will be reviewed every 6 years.

2 orders of 19 June 2024 indicated that municipalities located in the FRR zone and the municipalities located in the ZRR to 1er July 2024.

Please note

The municipalities not reclassified FRR zones will remain in ZRR and retain their exemptions ZRR.

What are the benefits for companies located in an FRR zone?

Companies located in an RRF zone will be eligible for tax and social security exemption schemes.

Such exemptions may concern:

  • income or business tax;
  • company property tax (CFE), this exemption will be in case of deliberation of the municipality before 1er October N to apply from 1er January N+1;
  • the property tax on built-up property (TFPB), this exemption will be made in case of deliberation of the municipality before 1er October N to apply from 1er January N+1.
What are the conditions for benefiting from tax and social security exemptions?

For tax exemptions, the company must complete several conditions :

  • employ less than 11 employees ;
  • to engage in industrial, commercial, craft or professional activities;
  • have its registered office and all of its business and means of operation located in an RRF zone;
  • be automatically or on option subject to a actual taxation system ;
  • be created or resumed between 1er july 2024 and december 31, 2029.

Under the new RRF, the duration of all tax exemptions is harmonized.

Thus, the exemptions are applicable for 5 years at 100 % before being reduced degressively for the following 3 years (75 %, 50 % and then 25 %).

Concerning the social exemptions, the conditions are identical to those applicable to the RRs:

  • employ less than 50 employees ;
  • engage in craft, industrial, commercial, agricultural or non-commercial activities;
  • hire from an establishment located in FRR (employee on a permanent contract or permanent contract of at least 12 months);
  • ne not having made a dismissal for economic reasons within 12 months prior to employment.

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