A re-energized employment area (BER) is an area of French territory characterized by a demographic decline and an unemployment rate higher than the national rate.

There are 2 employment zones to be revitalized:

• Vallée de la Meuse employment area in the Grand-Est region
• Lavelanet employment area in Occitanie region.

To find out if your company is located in an EBRS, you can consult the list of municipalities belonging to an EBRS:

List of municipalities in the 2 employment areas BER

Prime Minister

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The company located in an EBRD can benefit from tax exemptions: income tax, company property tax (CFE) and property tax on built property (TFPB).

It also benefits fromexemptions from social contributions .

Conditions for exemption

Creating an Activity

A company settled in an RTB is exempt from business tax (SI) or income tax (IR) for 5 years. To do so, it must meet the following conditions:

• Its activity must have been created between 1^er January 2007 and December 31, 2027
• It is a commercial, craft, industrial or rental activity of buildings for industrial or commercial use with their equipment when located in the EBRO.
• The activity must be effectively located in a BER. This means that there is a physical location (commerce, firm, local, etc.), means of exploitation allowing the exercise of the profession (stocks, etc.)
  Where the company operates outside a BER, exemption is possible if at least one of the following two criteria is met:
  
  • An employee works in premises used for the company’s activities located in the area, works there all his working time and is employed there at full or equivalent pay
  • Or the company earns at least 25% of its turnover from customers in such a pool

Pre-existing business resumption

A company which takes over an activity may benefit from the exemption from income tax where that activity was placed under the exemption prior to resumption . The exemption shall then apply for the remainder of the term of office.

When the company resumes an activity which was not subject to the BER regime, it may benefit from a new exemption period from the date of take-over provided that a new business or new establishment is created.

Transfer of pre-existing business and concentration or restructuring of business

One transfer corresponds to the total or partial cessation of an activity followed by the creation of a similar activity in an EBRD. Where the creation of an activity in an BER follows the transfer of an activity previously carried out in another BER, exemption is possible only for the remaining term of the scheme.

For activities created within a BER within the framework of a concentration or a restructuring of an activity already carried on in an EBRO, exemption is possible only for the remaining term of the scheme.

Activities excluded from exemption

Companies carrying out the following activities shall not benefit from of this exemption:

• Real estate, agricultural, construction-sale or management of movable or immovable property
• Activities transferred to an EBRO that has already benefited from other exemptions for 5 years
• Activities created as part of a transfer or restructuring of activities already carried out in the EBRS.

Amount of the income tax exemption

The income tax exemption is total during the first 5 years of operation according to the creation or establishment in the employment area to be revitalized.

This exemption is subject to the de minimis rule. This means that it is limited to €300,000 over 3 rolling fiscal years.

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.

Request for exemption

In order to benefit from the income tax exemption, the company must send the company Tax Office (SIE) a statement of the determination of its profit with its declaration of results.

Conditions for exemption from the EWC

A company settled in an EBRD may be exempt from company Land Assessment (CFE) for 5 years.

To do this, it must have carried out a establishment or extension of establishment in these basins between 1^er July 2007 and December 31, 2027 .

Amount of the exemption

The exemption is total during the first 5 years of operation following the creation or extension of an establishment in the employment area to be revitalized.

This exemption is subject to the de minimis rule. This means that it is limited to €300,000 over 3 rolling fiscal years.

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.

Application for exemption from CFE

To benefit from the exemption in the case of establishment, the company shall make the request in the Declaration No 1447-C-SD (initial declaration) and in theAnnex No 1447-E :

Initial Declaration 1447-C-SD (CFE)

Initial Declaration, Annex 1447-E (CFE)

This statement shall be sent no later than 31 December the year in which the establishment was set up or took over by the company tax office (SIE).

In case extension of establishment, the company must complete an amending declaration (Declaration 1447-M-S-D)before 3 May of the year following that in which the establishment was extended.

Amending Declaration 1447-M-SD (CFE)

Conditions for exemption

A company settled in a BBT may be exempt from property tax on built property (TFPB) for 5 years.

This exemption applies to buildings located in these basins and connected, between 1^er July 2007 and December 31, 2027 to an establishment which qualifies for the exemption from CFE.

Amount of the exemption

The local tax exemption shall not exceed €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.

Request for exemption

The company must complete the property tax return on built property form n°6693-SD . This form should be sent to the company Tax Office (SIE) before 1^er January the year of exemption.

Property Tax Exemption on Built Property for Certain Buildings in a Labor Pool or RRDA