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Taxation
Young growth company (JEC): additional criteria
Publié le 02 août 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The Official Gazette of Public Finance (Bofip) has just provided details of the application of the new Young Growth company (JEC) statute. Explanations.
Additional criteria to be a Young Growth company (JEC)
A decree of May 24, 2024 in force since May 1er June 2024 specifies the qualification of Young Growth company.
To be considered a JEC, in addition to criteria already laid down in the 2024 budget, the company must also meet all of the following economic performance indicators:
- the number of employees in the company has increased by at least 100 % and by at least 10 full-time employees, compared with that recorded at the close of the previous year (the year preceding the previous year);
- the amount of the company's research expenditure must not have decreased compared to the previous year.
These criteria (and the company's JEI status) are assessed at the end of financial years ending on 1er June 2024.
Exemption from tax on the profits of Young Innovative companies (JEI)
Reminder
The JECs are part of the JEIs.
The 2024 budget limited the income tax exemption to JEI created before December 31, 2023.
This exemption shall be equal to:
- 100% during the 1er profitable year the company;
- 50% during thenext beneficiary year.
The Bofip states that as long as those companies retain the qualification of JEI, they may benefit from that exemption.
Please note
Exemptions from company property contributions (CFEs), on the other hand, relate to the JEIs set up before 31 december 2025.