Rural Revitalisation Area (RBA) Tax Exemptions

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

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

Amount and Duration

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

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 1^to 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

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)