Conditions for exemption

In order to benefit from the exemptions from income tax (IR) and business tax (IS), the company has to set up a new business and meet a requirement of employment or turnover.

Exemption rules differ depending on whether the company has a new activity or carries out a new and non-sedentary activity (i.e. which takes place outside the business premises, mainly at the customer's premises).

New activity

To qualify for the exemption, the company must set up a new activity, previously non-existent in the DRA.

This new activity must first exist for a period of 6 years.

This period starts on one of the following dates:

• From the date of publication of the decree delimiting the RDA
• If the date of this decree is after the activity, from 1^er January of the year preceding the year for which the DRA is recognized. For example, if the municipality in which the activity is carried out is recognized as an RDA in the course of 2020, then the period to benefit from exemptions starts on 1^er January 2019.

The new activity must relate to one of the following areas:

• Industrial, craft or commercial,
• Liberal if it is exercised in a business subject to the SI,
• Rental of professional buildings with their equipment (examples: factory with manufacturing machinery, restaurant with kitchen and equipment for the public, warehouse with storage and shipping equipment).

New and non-sedentary activity

In addition to the conditions associated with the new activity, the company that has non-sedentary activity but which is located in an RDA must also meet one of the following 2 conditions:

• Employ at least one full-time sedentary employee who performs duties on premises located in the DSA (no business travel outside the DSA)
• Achieve at least 25% of its HT turnover with customers located in the ZRD

If the activity is partly carried out outside the ZRD (taxis, building trades, personal services activities), the company is entitled to tax exemption only on its profit realized in the ZRD (office, workshop, etc.).

Amount of the exemption

The exemption from income tax or business tax is total for 5 years.

For the following 2 years, the exemption is equal to:

• 2/3 profit on 1^re year,
• 1/3 of profits on 2^e year.

How to benefit from the exemption?

You must attach a special return to your income tax return and complete the necessary elements that give you the right to this tax exemption.

Calculation sheet to be attached to the income statement - BOFIP - taxes - ZRD

General Directorate of Public Finance

Pour en savoir plus

These documents must be sent to the companies' tax office when the annual income tax return is filed.

Conditions for exemption

Exemption rules differ depending on whether the company has a new activity or carries out a new and non-sedentary activity (i.e. which takes place outside the business premises, mainly at the customer's premises).

New activity

To qualify for the exemption, the company must set up a new activity, previously non-existent in the DRA.

This new activity must first exist for a period of 6 years.

This period starts on one of the following dates:

• From the date of publication of the decree delimiting the RDA
• If the date of this decree is after the activity, from 1^er January of the year preceding the year for which the DRA is recognized. For example, if the municipality in which the activity is carried out is recognized as an RDA in the course of 2020, then the period to benefit from exemptions starts on 1^er January 2019.

The new activity must relate to one of the following areas:

• Industrial, craft or commercial,
• Liberal if it is exercised in a business subject to the SI,
• Rental of professional buildings with their equipment (examples: factory with manufacturing machinery, restaurant with kitchen and equipment for the public, warehouse with storage and shipping equipment).

New and non-sedentary activity

In addition to the conditions associated with the new activity, the company that has non-sedentary activity but which is located in an RDA must also meet one of the following 2 conditions:

• Employ at least one full-time sedentary employee who performs duties on premises located in the DSA (no business travel outside the DSA)
• Achieve at least 25%its HT turnover with customers located in the ZRD

If the activity is partly carried out outside the ZRD (taxis, building trades, personal services activities), the company is entitled to tax exemption only on its profit realized in the ZRD (office, workshop, etc.).

Amount of the exemption

The exemption from the CFE is total.

It lasts 5 years.

It shall begin either the year following the establishment of the company or the year following the extension of the establishment.

Procedure for obtaining exemption

The request is made to the company Tax Service (SIE).

The company must apply for the exemption for each of the establishments concerned:

• or in the initial declaration of the CFE (cerfa No 14187) by 31 December of the year of establishment or change of establishment operator:

Initial Declaration 1447-C-SD (CFE)

• or in the declaration of modification of the CFE (cerfa No 14031) by 2^e working day following 1^er May of the year after the extension of the establishment.

Amending Declaration 1447-M-SD (CFE)

Conditions for exemption

At the discretion of the local and regional authorities, where the company is eligible for the exemption from CFE, the exemption from property tax on built-up property for buildings located in ZRD is total for 5 years.

Procedure for obtaining 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

Conditions for exemption

To qualify for the exemption, the company must set up a new activity, previously non-existent in the DRA.

This new activity must first exist for a period of 6 years.

This period starts on one of the following dates:

• From the date of publication of the decree delimiting the RDA
• If the date of this decree is after the activity, from 1^er January of the year preceding the year for which the DRA is recognized. For example, if the municipality in which the activity is carried out is recognized as an RDA in the course of 2020, then the period to benefit from exemptions starts on 1^er January 2019.

The new activity must relate to one of the following areas:

• Industrial, craft or commercial,
• Liberal if it is exercised in a business subject to the SI,
• Rental of professional buildings with their equipment (examples: factory with manufacturing machinery, restaurant with kitchen and equipment for the public, warehouse with storage and shipping equipment).

If the activity is partly carried out outside the ZRD (taxis, building trades, personal services activities), the company is entitled to tax exemption only on its profit realized in the ZRD (office, workshop, etc.).

Neither the take-overs of existing activities in the RDA, nor the rental of residential buildings, make it possible to benefit from the exemptions.

Amount of the exemption

The exemption from employer contributions varies according to wages.

It is total for monthly gross earnings below €2,522.52 (corresponding to 1,4 Smic).

There is no exemption for monthly gross remuneration equal to €4,324.32 (or 2.4 Smic).

It is granted for 5 years from the establishment or creation of the company in the RDA. If the hiring takes place after that date, the exemption is not deferred accordingly.

For the first 3 years, the exemption is at full rate (at 100%). The 4^e year, it is reduced by 1/3, and the 5^e year of 2/3.

Procedure for obtaining exemption

The request for exemption is made to the Urssaf by following the following procedure:

Application for exemption from employer contributions by the social security procedure