Employment pool to be revitalized (BER): tax and contribution exemptions
Verified 01 May 2023 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Labor
A company that settles or is made between 1er January 2007 and 31 December 2023 an extension of an establishment in an employment pool to be revitalized (BER) may benefit from exemptions. Two employment zones are concerned: the Meuse valley in the Grand-Est region and the Lavelanet employment zone 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 an EBRO in consulting the list of municipalities belonging to an EBRD.
Installation between 2018 and 2023
Duration
A company settled in an EBRD may be exempted from property tax and company property tax (CFE) during 5 years
- from the year following the year in which the activity was created
- or from 2e year following the extension of the activity in the BER.
How do I apply?
For the exemption from the property tax, the company must apply to the property tax center before 1er January of 1re exemption year.
For the exemption from the CFE, the company must submit the application for each establishment to the tax office
- no later than 31 December the year in which the establishment was created or took over
- or before 3 May of the year following that in which the establishment was extended.
Ceilings
Exemption from local taxes in an RTB is limited to €200,000 over 3 fiscal years.
FYI
if the operator changes during the exemption period, the replacement shall continue to receive the same relief for the remaining period.
Conditions for receiving it
A company settled in an RTB is exempt from income or business tax for 5 years it fulfills the following conditions:
- It carries on a commercial, craft or industrial activity
- It is implanted only or partly in an EBRD
Implantation means that the following 3 conditions are met:
- Hardware presence (e.g. rental of premises)
- Means of exploitation
- Actual activity
Activities excluded from 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.
How do I apply?
In order to benefit from the exemption, the company must submit to the companies Tax Office (SIE) a statement of the determination of its profit with its declaration of results.
Who shall I contact
Ceilings
The exemption from income tax in an EBRD is limited to €200,000 over 3 fiscal years.
FYI
if the operator changes during the exemption period, the replacement shall continue to receive the same relief for the remaining period.
Conditions for receiving it
The employee must be employed in an establishment situated in a BER: titleContent.
Implantation means that the following 3 conditions are met:
- Hardware presence (e.g. rental of premises)
- Means of exploitation
- Actual activity
In addition, the employee must have a real, regular and indispensable activity in the performance of the employment contract.
Finally, the employer must not have made an economic dismissal within the 12 months preceding the hiring.
What are the exempt contributions?
The exemption covers the following contributions:
- Social insurance contributions:
- Sickness and maternity insurance
- Disability, death
- Old-age insurance
- Family allowances
- Contribution to Final: titleContent
- Transport Mobility Payment
What are the excluded contributions?
The exemption does not apply to the following contributions:
- Accidents at work
- Occupational diseases
- Solidarity contribution for autonomy (CSA))
- CSG-CRDS
- Supplementary pension
- Unemployment
Duration of the exemption
The exemption lasts 5 years.
How do I apply?
In order to benefit from the exemption, the company must submit a declaration on movement of labor for each subsequent 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 by the 1re statement
- The 2 calendar years following the period covered by the 2e statement
The employer must send each return to the Dreets: titleContent and the Urssaf no later than 30 April.
Annual Labor Movement Report (WMD) in a labor pool to be revitalized (BER)
In case of extension of establishment, the employer must send to the Urssaf a specific declarationbefore the end of the 12the month after the effective date of the extension of the establishment.
Declaration for employees recruited during an extension of establishment in an EBRD
Ceilings
The exemption must be less than 1.4 hourly minimum wage per hour paid, i.e. less than €11.52 per hour paid.
Installation in 2016 or 2017
Duration
A company settled in an EBRD may be exempted from property tax and company property tax (CFE) during 5 years
- from the year following the year in which the activity was created
- or from 2e year following the extension of the activity in the BER.
How do I apply?
For the exemption from the property tax, the company must apply to the property tax center before 1er January of 1re exemption year.
For the exemption from the CFE, the company must submit the application for each establishment to the tax office
- no later than 31 December the year in which the establishment was created or took over
- or before 3 May of the year following that in which the establishment was extended.
Ceilings
Exemption from local taxes in an RTB is limited to €200,000 over 3 fiscal years.
FYI
in the event of a change of operator during the exemption period, the replacement shall continue to benefit from the same relief for the remaining period.
Conditions for receiving it
A company settled in an RTB is exempt from income or business tax for 5 years it fulfills the following conditions:
- It carries on a commercial, craft or industrial activity
- It is implanted only or partly in an EBRD
Implantation means that the following 3 conditions are met:
- Hardware presence (e.g. rental of premises)
- Means of exploitation
- Actual activity
Activities excluded from 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.
How do I apply?
In order to benefit from the exemption, the company must submit to the companies Tax Office (SIE) a statement of the determination of its profit with its declaration of results.
Who shall I contact
Ceilings
The exemption from income tax in an EBRD is limited to €200,000 over 3 fiscal years.
FYI
if the operator changes during the exemption period, the replacement shall continue to receive the same relief for the remaining period.
Conditions for receiving it
The employee must be employed in an establishment situated in a BER: titleContent.
Implantation means that the following 3 conditions are met:
- Hardware presence (e.g. rental of premises)
- Means of exploitation
- Actual activity
In addition, the employee must have a real, regular and indispensable activity in the performance of the employment contract.
Finally, the employer must not have made an economic dismissal within the 12 months preceding the hiring.
What are the exempt contributions?
The exemption covers the following contributions:
- Social insurance contributions:
- Sickness and maternity insurance
- Disability, death
- Old-age insurance
- Family allowances
- Contribution to Final: titleContent
- Transport Mobility Payment
What are the excluded contributions?
The exemption does not apply to the following contributions:
- Accidents at work
- Occupational diseases
- Solidarity contribution for autonomy (CSA))
- CSG-CRDS
- Supplementary pension
- Unemployment
Duration of the exemption
The exemption lasts 5 years.
How do I apply?
In order to benefit from the exemption, the company must submit a declaration on movement of labor for each subsequent period:
- 2018 and 2019
- Between 1er January 2020 and the date on which the exemption ends
The employer must send each return to the Dreets: titleContent and the Urssaf no later than 30 April.
Annual Labor Movement Report (WMD) in a labor pool to be revitalized (BER)
In case of extension of establishment, the employer must send to the Urssaf a specific declarationbefore the end of the 12the month after the effective date of the extension of the establishment.
Declaration for employees recruited during an extension of establishment in an EBRD
Ceilings
The exemption must be less than 1.4 hourly minimum wage per hour paid, i.e. less than €11.52 per hour paid.
Installation in 2014 or 2015
A company settled in an EBRD 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 following the extension of the activity in the BER.
For the exemption from the property tax, the company must apply to the property tax center before 1er January of 1re exemption year.
For the exemption from the company property tax (CFE), the company must submit the application for each establishment to the tax office
- no later than 31 December the year in which the establishment was created or took over
- or before 3 May of the year following that in which the establishment was extended.
Exemption from local taxes in an RTB is limited to €200,000 over 3 fiscal years.
FYI
in the event of a change of operator during the exemption period, the replacement shall continue to benefit from the same relief for the remaining period.
Installation before 2014
A company settled in an EBRD 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 following the extension of the activity in the BER.
For the exemption from the property tax, the company must apply to the property tax center before 1er January of 1re exemption year.
For the exemption from the company property tax (CFE), the company must submit the application for each establishment to the tax office
- no later than 31 December the year in which the establishment was created or took over
- or before 3 May of the year following that in which the establishment was extended.
Who shall I contact
Exemption from local taxes in an RTB is limited to €200,000 over 3 fiscal years.
FYI
if the operator changes during the exemption period, the replacement shall continue to receive the same relief for the remaining period.
Who can help me?
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- General Tax Code: Article 44kExemptions from income tax
- General Tax Code: Article 1383 HProperty Tax Exemption on Built Property (TFPB)
- General Tax Code: Article 1466AExemption from companies' property contributions
- Decree n°2007-648 of 30 April 2007 on the application of Law n°2006-1771 creating employment pools to be revitalized (BER)List of municipalities of the EBRS
- Decree 2018-551 of 29 June 2018 amending Decree 2007-648 of 30 April 2007 on the VII of Article 130 of the amending Finance Law for 2006 creating the employment pools to be revitalized (BER)
- Decree No. 2018-550 of 29 June 2018 amending Decree No. 2007-228 of 20 February 2007 establishing the list of employment areas to be revitalized and the statistical references to determine these areas