Employment pool to be revitalized (EBRD): tax exemptions
Verified 01 July 2024 - Directorate for Legal and Administrative Information (Prime Minister)
Exemption scheme zone France Ruralités Revitalizations (FRR)
Published on 1 July 2024
As of 31 December 2024, the new France rural revitalization (FRR) replace the tax exemptions in the labor pool to be revitalized (BER).
The creation of activities carried out between 1er January 2007 and 31 December 2024 in a labor pool to be revitalized (BER) may benefit from exemption from income tax, property tax on built property (TFPB) and company property tax (CFE). The takeovers and transfers of activities are also affected under certain conditions. Two employment zones are concerned: the Meuse valley in the Grand-Est region and the Lavelanet employment zone in the Occitanie region.
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:
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 1er January 2007 and December 31, 2024
- 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
Please note
For activities created on or after 1er in january 2014, the benefit of the exemption is definitively lost from the financial year in which a profit distribution decision was taken.
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.
FYI
if the operator changes during the exemption period, the replacement shall continue to receive the same relief for the remaining period.
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.
Who shall I contact
Conditions for exemption from the EWC
An enterprise in an EBRD may be exempt from the Business Property Tax (BPE) for 5 years.
To do this, it must have carried out a establishment or extension of establishment in these basins between 1er July 2007 and December 31, 2024 .
As of 1er january 2025, the new zoning France ruralités revitalization (FRR) will replace the tax exemptions of the BER.
FYI
The communities may decide by deliberation that this exemption does not apply. This deliberation must be taken before 1er October to take effect on 1er January of the following year.
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 must 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).
Who shall I contact
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)
Who shall I contact
Conditions for exemption
A business located in an EBT may be exempted from property tax on built property (TFPB) for 5 years.
This exemption applies to buildings located in these basins and connected, between 1er July 2007 and December 31, 2024, to an establishment which qualifies for the exemption from CFE.
FYI
As of 1er january 2025, the new zoning France ruralités revitalization (FRR) will replace the tax exemptions of the BER.
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 Business Tax Service (SIE) before 1er January the year of exemption.
Property Tax Exemption on Built Property for Certain Buildings in a Labor Pool or RRDA
Who shall I contact
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Exemption from income tax
Property Tax Exemption on Built Property (TFPB)
Exemption from company real estate contributions (CFE)
Ministry of Finance
Prime Minister
Directorate of Legal and Administrative Information (Dila) - Prime Minister