Tax exemptions in rural revitalization areas (RRZ)
Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)
A company located or wishing to set up in a Rural Revitalization Area (RRZ) benefit from tax exemptions under certain conditions. These criteria relate in particular to the number of employees and the nature of the activity carried out. This arrangement is being extended until June 30, 2024. Exemption requests can be made until that date.
To find out if your company is located in an RRZ, you can consult the map of the areas concerned.
Companies concerned
The exemption from income tax (IR) or business tax (SI) is granted to a company that has been created or taken over before june 30, 2024 and that respects 5 conditions following:
- Engage in an industrial, commercial, craft or professional activity
- Have its registered office and activities located in an RRZ
- To be under the effective taxation regime
- Have less than 11 employees in DTA: titleContent or CSD: titleContent minimum 6 months
- Have less than 50%its capital held by other businesses
Please note
As of 1er July 2024, a new zoning, called zones France Ruralités Revitalization (ZFRR), will be put in place in support of territories in difficulty in replacement of ZRR zoning.
If the company realizes more than 25% of its turnover outside of the ZRR, the part that exceeds 25% is imposed.
Example :
A road haulage business may benefit from the tax exemption scheme if the place where the vehicles are normally based, the place where maintenance facilities are located and the place where actual management is located are in the ZRR. Account must also be taken of the proportion of turnover achieved in the ZRR.
In order to calculate the actual turnover in the ZRR, the place where the service is provided must be considered. For goods transport activities, the place of performance of the service is located in ZRR if the place of loading and/or delivery is located in ZRR.
Excluded companies
A company that meets any of the following characteristics is excluded exemption:
- Have a financial, banking, insurance, property rental management or sea fishing activity
- Being a micro-company
- Making agricultural profits
- Be created by extending an activity that already existed
- Be set up by transfer of an activity carried on in a company which is already exempt
FYI
In cases of familial transmission, only 1re transmission is exempt. In addition, the take-over and restructuring of staff must have taken place after 30 December 2017.
Amount and Duration
- For the first 5 years, the exemption is total.
- The 6e year, the exemption is 75% tax.
- The 7e year, the exemption is 50%
- The 8e year, the exemption is 25%
The maximum amount of the exemption is less than €300,000 over 3 fiscal years.
The exemption from income tax shall be limited to €300,000 over 3 rolling fiscal years. This is the application of the de minimis rule.
The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of the date of granting each new de minimis aid. For each new de minimis aid granted, account should be taken of the total amount of aid de minimis granted during the previous 3 years.
Approach
The entrepreneur doesn't have to take any particular steps.
Exemption is automatic after completing the line in income tax.
The company can check with the tax office to see if it meets the conditions. Failure to respond for 3 months is deemed acceptance.
Who shall I contact
Companies concerned
The CFE is one of the 2 components of the Economic and Territorial Contribution (ETC). It is a business tax based only on property subject to property tax. It is payable by professionals habitually engaged in self-employed activity on 1er January of the taxation year.
The company shall be exempt from CFE if it meets one of the following conditions:
- Extension or creation, conversion or takeover of establishments engaged in industrial activities or in scientific and technical research, or in the provision of management, studies, engineering and data-processing services
- Creation of activities by craftsmen, registered in the National Register of companies (RNE), who carry out manufacturing, processing, repair or service work and for whom the remuneration for the work represents more than 50% of 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 a EPCI: titleContent may grant partial or total exemption from TEC and Property Tax on Built Property (TFPB) to an SME carrying on a commercial or craft activity in an RRZ. The CFC exemption is automatic unless the community eliminates it.
Amount and Duration
The exemption is automatic and concerns the whole of the CET (CFE and CVAE).
Its duration is up to 5 years.
Exemption must be less than €300,000 over 3 rolling fiscal years. This is the application of the de minimis rule.
The period must therefore include the current fiscal year, as well as the 2 previous fiscal years. Compliance with this ceiling shall be assessed at the time of the date of granting each new de minimis aid. For each new de minimis aid granted, account should be taken of the total amount of aid de minimis granted during the previous 3 years.
Approach
In order to benefit from the exemption from the CET, the company must send the following two forms to the companies Tax Office (SIE):
- the form cerfa no. 10694 at the tax center with the sending of the annual declaration of CFE on 3 May following the year of completion of the exempt transaction,
- the form cerfa no. 14187, by 31 December of the year in which the activity was created.
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 authorization.
Specific amending declaration 1465-SD (CFE)
Initial Declaration 1447-C-SD (CFE)
Who shall I contact
Local authorities and EPCI: titleContent The following companies located in an RRZ may exempt from property tax on built-up property (TFPB):
- Hotels
- Furniture for tourism
- Bed and Breakfast
The company must meet the following 2 criteria:
- Employ fewer than 11 employees in the penultimate year before taxation
- Earn an annual turnover (excluding taxes) of less than €2 million in the penultimate year before taxation or in the last 12-month fiscal year (closed fiscal year).
The exemption applies to premises which are used solely for the accommodation activity.
The company must complete the form cerfa n° 15532 and send it to the property tax center responsible for his municipality.
In RRZs, local and regional authorities and EPCI: titleContent may exempt of residential tax on second homes, the following premises:
- Furniture for tourism
- Bed and Breakfast
The exemption applies to premises which are used solely for the accommodation activity.
The company must complete the form cerfa n° 13567 and send it to the property tax center responsible for his municipality.
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- Land and cadastre tax center
- Company Tax Service (SIE)
- Departmental Directorate for Employment, Labor and Solidarity (DDETS or DDETS-PP, ex-Direct)
- Town Hall
Exemption from ZRR benefits
Property tax
Residential tax on second homes
Extension of the scheme until 2027
Classification of municipalities in rural revitalization areas (RRZ)
National Agency for Territorial Cohesion (ANCT)
National Agency for Territorial Cohesion (ANCT)