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Job pool to be re-energised (BER): tax and contribution exemptions

Verified 01 August 2022 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Labour

A company that settles or realises between 1to January 2007 and December 31, 2023 an extension of an establishment in a re-energising employment pool (BER) may benefit from exemptions. Two areas of employment are concerned: the Meuse valley in the Grand-Est region and the Lavelanet employment area in the Occitanie region. These are exemptions from income tax and local taxes and contributions.

You can find out if your company is located in a BER consult the list of municipalities belonging to a BER .

Installation between 2018 and 2023

Duration

A company settled in an EAR may be exempt from property tax and company Property Assessment (CFE) during 5 years

  • from the year following the year in which the activity was created
  • or from 2e year after the activity has been extended in the BER.
How do I apply?

For exemption from property tax, the company must apply to the property tax centre before 1to January ofre year of exemption.

For exemption from CFE, the company must apply to the tax department for each establishment

  • by 31 December of the year of establishment or resumption of establishment
  • or before 3 May of the year following the year of the extension of establishment.
Who shall I contact
Ceilings

The exemption from local taxes in an EAR shall be €200 000 over 3 fiscal years.

FYI  

if the operator changes during the exemption period, the replacement continues to receive the same relief during the remaining period.

Conditions for receiving

A company settled in an EAR is exempt from income or business tax for 5 years if it meets the following conditions:

  • It carries on a commercial, craft or industrial activity
  • It is implemented only or partially in a BER

Implementation means that the following 3 conditions are met:

  • Physical presence (e.g. rental of premises)
  • Means of operation
  • Actual

Activities excluded from exemption

  • Leasing activities of furniture, agriculture, construction-sale real estate or management of movable or real estate assets
  • Activities transferred to an EAR that have already benefited from other exemptions for 5 years
  • Activities created in the context of a transfer or restructuring of activities already carried out in the ERA.

How do I apply?

In order to benefit from the exemption, the company must send to the company Tax Service (EIS) a statement of its profit with its declaration of results .

Who shall I contact

Ceilings

The exemption from tax on profits in an EAR is capped at €200 000 over 3 fiscal years.

FYI  

if the operator changes during the exemption period, the replacement continues to receive the same relief during the remaining period.

Conditions for receiving

The employee must be hired in an establishment located in a BER: titleContent.

Implementation means that the following 3 conditions are met:

  • Physical presence (e.g. rental of premises)
  • Means of operation
  • Actual

In addition, the employee must have a real, regular and essential activity in order to fulfil the employment contract.

Finally, the employer must not have made an economic layoff within the 12 months preceding the hiring.

What are the exempt contributions?

The exemption covers the following contributions:

  • Social insurance contributions:
    • Maternity Health Insurance
    • Disability
    • Old Age Insurance
  • Family allowances
  • Contribution to End: titleContent
  • Transport mobility payment

What contributions are excluded?

The exemption does not apply to the following contributions:

Duration of exemption

The exemption lasts 5 years.

How do I apply?

In order to benefit from the exemption, the company must submit a labour movement statement for each following period:

  • The calendar year of establishment, establishment or extension of the establishment and the following calendar year
  • The 2 calendar years following the period covered byre declaration 
  • The 2 calendar years following the period covered bye declaration

The employer must send each return to the Dreets: titleContent and Urssaf by 30 April.

Annual Statement of Labour Movement (DMMO) in a Reinvigorating Labour Pool (BER)

In case of extension of establishment, the employer must send to the Urssaf a specific statementbefore the end ofe month following the effective date of the extension of the hotel.

Declaration for employees recruited during an extension of establishment in a BER

Ceilings

The exemption must be less than 1.4 Hourly Smic per paid hour, or less than €11.07 per paid hour.

Installation in 2016 or 2017

Duration

A company settled in an EAR may be exempt from property tax and company Property Assessment (CFE) during 5 years

  • from the year following the year in which the activity was created
  • or from 2e year after the activity has been extended in the BER.
How do I apply?

For exemption from property tax, the company must apply to the property tax centre before 1to January ofre year of exemption.

For exemption from CFE, the company must apply to the tax department for each establishment

  • by 31 December of the year of establishment or resumption of establishment
  • or before 3 May of the year following the year of the extension of establishment.
Who shall I contact
Ceilings

The exemption from local taxes in an EAR shall be €200 000 over 3 fiscal years.

FYI  

in the case of a change of operator during the exemption period, the replacement shall continue to benefit from the same relief during the remaining period.

Conditions for receiving

A company settled in an EAR is exempt from income or business tax for 5 years if it meets the following conditions:

  • It carries on a commercial, craft or industrial activity
  • It is implemented only or partially in a BER

Implementation means that the following 3 conditions are met:

  • Physical presence (e.g. rental of premises)
  • Means of operation
  • Actual

Activities excluded from exemption

  • Leasing activities of furniture, agriculture, construction-sale real estate or management of movable or real estate assets
  • Activities transferred to an EAR that have already benefited from other exemptions for 5 years
  • Activities created in the context of a transfer or restructuring of activities already carried out in the ERA.

How do I apply?

In order to benefit from the exemption, the company must send to the company Tax Service (EIS) a statement of its profit with its declaration of results .

Who shall I contact

Ceilings

The exemption from tax on profits in an EAR is capped at €200 000 over 3 fiscal years.

FYI  

if the operator changes during the exemption period, the replacement continues to receive the same relief during the remaining period.

Conditions for receiving

The employee must be hired in an establishment located in a BER: titleContent.

Implementation means that the following 3 conditions are met:

  • Physical presence (e.g. rental of premises)
  • Means of operation
  • Actual

In addition, the employee must have a real, regular and essential activity in order to fulfil the employment contract.

Finally, the employer must not have made an economic layoff within the 12 months preceding the hiring.

What are the exempt contributions?

The exemption covers the following contributions:

  • Social insurance contributions:
    • Maternity Health Insurance
    • Disability
    • Old Age Insurance
  • Family allowances
  • Contribution to End: titleContent
  • Transport mobility payment

What contributions are excluded?

The exemption does not apply to the following contributions:

Duration of exemption

The exemption lasts 5 years.

How do I apply?

In order to benefit from the exemption, the company must submit a labour movement statement for each following period:

  • Year 2018 and year 2019
  • Between 1to January 2020 and the end date of the exemption

The employer must send each return to the Dreets: titleContent and Urssaf by 30 April.

Annual Statement of Labour Movement (DMMO) in a Reinvigorating Labour Pool (BER)

In case of extension of establishment, the employer must send to the Urssaf a specific statementbefore the end ofe month following the effective date of the extension of the hotel.

Declaration for employees recruited during an extension of establishment in a BER

Ceilings

The exemption must be less than 1.4 Hourly Smic per paid hour, or less than €11.07 per paid hour.

Installation in 2014 or 2015

A company settled in an EAR may be exempt from property tax and CFE during 5 years

  • from the year following the year in which the activity was created
  • or from 2e year after the activity has been extended in the BER.

For exemption from property tax, the company must apply to the property tax centre before 1to January ofre year of exemption.

For exemption from company Property Assessment (CFE), the company must apply to the tax department for each establishment

  • by 31 December of the year of establishment or resumption of establishment
  • or before 3 May of the year following the year of the extension of establishment.
Who shall I contact

The exemption from local taxes in an EAR shall be €200 000 over 3 fiscal years.

FYI  

in the case of a change of operator during the exemption period, the replacement shall continue to benefit from the same relief during the remaining period.

Installation before 2014

A company settled in an EAR may be exempt from property tax and CFE during 5 years

  • from the year following the year in which the activity was created
  • or from 2e year after the activity has been extended in the BER.

For exemption from property tax, the company must apply to the property tax centre before 1to January ofre year of exemption.

Who shall I contact

For exemption from company Property Assessment (CFE), the company must apply to the tax department for each establishment

  • by 31 December of the year of establishment or resumption of establishment
  • or before 3 May of the year following the year of the extension of establishment.

The exemption from local taxes in an EAR shall be €200 000 over 3 fiscal years.

FYI  

if the operator changes during the exemption period, the replacement continues to receive the same relief during the remaining period.

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