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Rural Revitalisation Area (RBA) Tax Exemptions

Verified 01 January 2022 - Legal and Administrative Information Directorate (Prime Minister)

A company located or wishing to establish itself in a Rural Revitalisation Area (RBA) benefits from tax exemptions under certain conditions. These criteria are linked in particular to the number of employees and the nature of the company's activity. This scheme is extended until 31 December 2023. Applications for exemption may be made until that date.

To find out if your company is in a ZRR, you can map of the areas concerned .

Companies concerned

Exemption from income tax or business tax is granted to a company that is created or resumed before 31 December 2023 and meets the following 5 conditions:

  • Carrying out an industrial, commercial, craft or liberal activity
  • Have its head office and activities located in an RBA
  • Be under the actual tax regime
  • Have fewer than 11 employees CDI: titleContent or CDD: titleContent 6 months minimum
  • Have less than 50%of its capital held by other businesses

Reminder

self-employed persons are excluded from this exemption. They are not under the actual tax system, but under the simplified tax system.

If the company achieves more than 25% of its CA (turnover) outside the ZRR, the share that exceeds 25% is imposed.

Companies excluded

A company that meets any of the following characteristics is excluded from the exemption:

  • Have a financial, banking, insurance, rental management of buildings or marine fishing activity
  • Be a micro company
  • Making Agricultural Profits
  • Be created by extending an activity that already existed
  • Be created by transferring an activity carried on in an already exempt company

FYI  

in case of family transmission, only themother transmission is exempt. In addition, the resumption and restructuring of staff must have taken place after 30 December 2017.

Amount and Duration

  • The first 5 years, the exemption is total.
  • 6e year, the exemption is 75% tax.
  • 7e year, the exemption is 50%
  • 8e year, the exemption is 25%

The maximum amount of the exemption is less than €200 000 over 3 fiscal years.

If this is a transport company, it is less than €100 000 over 3 fiscal years.

Approach

The contractor does not have a particular approach to take.

The exemption is automatic after completing the line in the tax result.

The company can check with the tax department to see if it meets the conditions. No reply for 3 months is accepted.

Who shall I contact

Please note

if the company is entitled to several different exemption schemes (ZRRQPVZFU-TE, BER Revitalisation zones for rural shops, etc.), it has 6 months to choose the one linked to a PBA. This choice is final.

Companies concerned

The CFE is one of the 2 components of the economic and territorial contribution (CET). It's a business tax based only on property subject to property tax. It is due by professionals who regularly engage in a self-employed activity at 1to January of the taxation year.

The company is exempt from EFC if it meets any of the following:

  • Extension or establishment, conversion or takeover of establishments engaged in industrial or scientific and technical research, or management, study, engineering and computer services
  • Creation of activities by craftsmen, registered in the trade register, carrying out manufacturing, processing, repair or service work and for which the remuneration of the work represents more than 50% turnover
  • Creation of commercial activity and resumption of commercial or craft activity carried out by a company carrying out the same type of activity, with less than 5 employees and settled in a municipality of less than 2 000 inhabitants

FYI  

a territorial authority or EPCI: titleContent may grant partial or total exemption from CET and property tax on built properties (TFPB) to an SME carrying on a commercial or craft activity in a PBA. The CFE exemption is automatic unless the community removes it.

Amount and Duration

The exemption is automatic and applies to the entire TRC (CFE and CVAE).

Its duration is 5 years maximum.

The exemption must be less than €200 000 over 3 fiscal years.

Approach

In order to qualify for the exemption of CET, the company must send the following 2 forms to the company Tax Service (EIS):

  • form cerfa 10694 at the tax centre with the sending of the annual declaration of CFE on May 3 following the year of completion of the exempt transaction,
  • form cerfa 14187, no later than 31 December of the year of creation, in case of the creation of an activity.
    In the case of the extension or establishment of industrial establishments or scientific and technical research, the exemption shall apply without formality. In other cases, it is subject to authorisation.

Temporary Exemption from company Assessment (CFE)

Initial Statement for company Property Assessment (CFE) and Flat Tax on Network companies (IFER)

Who shall I contact

Local authorities and EPCI: titleContent may exempt built property tax (TFPB), the following companies located in a PBA:

  • Hotels
  • Tourist furniture
  • Bed & breakfasts

The company must meet the following 2 criteria:

  • Employ fewer than 11 employees in the penultimate year before tax
  • Realise annual revenue (excluding taxes) less than €2 million in the penultimate year before the tax or in the last 12-month fiscal year (year ended).

The exemption applies to premises used solely for the accommodation activity.

The company must fill in the form cerfa n°15532 and send it to the property tax centre responsible for its municipality.

Exemption from Property Tax on Built Property (TFPB): hotels, tourist furnished or guest rooms located in rural revitalisation area (ZRR)

Who shall I contact

Local authorities and EPCI: titleContent the following companies in an RBA may be exempt from residential tax:

  • Hotels
  • Tourist furniture
  • Bed & breakfasts

The exemption applies to premises used solely for the accommodation activity.

The company must fill in the form cerfa n°13567 and send it to the property tax centre responsible for its municipality.

Apply for exemption from the residential tax for guest rooms and tourist accommodation located in rural revitalisation area (RBA)

Who shall I contact

To small and medium-sized and micro-entreprises, do you have a business project, a difficulty or a question ?

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