Exemption from income tax

One GAME: titleContent established before 31 December 2023 may benefit from exemption from income tax equal to 100% during sound 1^er profitable year.

It can then benefit from a tax exemption on profits equal to 50% for the following financial year.

When the GAME no longer meets one of the requirements, it loses the benefit of total exemption of income tax for its first profitable financial year. On the other hand, it will be able to benefit from an exemption from income tax of up to 50%for the financial year in which it ceased to fulfill one of the required conditions and for the following financial year.

Tax exemption on built properties

Municipalities and their own-tax public inter-municipal cooperation establishments (EPCIs) may, on deliberation, decide to exempt buildings owned by GAME: titleContent.

In order to obtain the exemption, the company must subscribe to a return with the company tax office (SIE) on which it depends:

That statement must be made before 1^er January of the first year during which it wishes to benefit from that exemption.

It lasts 7 years.

Exemption from real estate contributions by companies (CFE)

Municipalities and their own tax-based public institutions for inter-municipal cooperation (EPCI) may, on deliberation, decide to exempt JEIs created before 31 december 2025.

This exemption relates to the share of the companies’ property contribution which goes to each municipality or EPIC with its own taxation system.

It lasts 7 years.

The company must submit an application for exemption for each establishment to company Tax Service (SIE)the establishment of which is responsible for:

The request has to be made on or before one of the following dates depending on the company's situation:

• The 2nd^e working day following 1^er May of the previous year that for which exemption is sought
• In the case of establishment, change of operator or activity during the year: on 2^e working day after 1^er May of the following year creation or change. You must provide an interim return before 1^er January of the year following the year of creation or change.

Is it possible to combine exemptions?

One GAME: titleContent who benefits from the income tax exemption may also apply for the research tax credit (RIC).

However, she won't be able to benefit from it exemptions and benefits granted to the following companies:

• new company
• Company set up in an urban free zone (ZFU-TE: titleContent)
• Company set up in rural revitalization areas (ZRR: titleContent)
• Company in a dynamic urban basin (BUD: titleContent)
• Company created in priority development area (ZDP: titleContent)

If the company qualifies for one of these schemes, it must opt for to benefit from the GAME status. By default, it is subject to the regime of one of the categories mentioned above. By opting for the GAME scheme, it renounces the exemptions granted to it by its other scheme.

This option can be taken at any of the following times:

• In the 9 months after the start of business
• In the First 9 months of the accounting year in which the option is exercised

This option is irrevocable.

A young university company (GAME) set up before 31 december 2025 may benefit from exemption from employer's social security contributions and family allowances.

The exemption applies if the following 2 conditions are met:

• The proportion of the monthly remuneration taken into account must not exceed €8,108.10.
• The amount of the exemption may not exceed €231,840 by establishment and by calendar year.

The remuneration concerned shall be that paid to the following persons:

• Employees performing any of the following functions:
  
  • Research engineer
  • Technician
  • R&D Project Manager
  • Legal officer in charge of industrial protection and technology agreements related to the project
  • Pre-competitive testing staff
  • Personnel directly involved in prototype design or pilot installation of new products
• Agents of the company which are principally engaged in the following activities:
  
  • Company Research and Development Project
  • Performing prototype design operations or pilot installations of new products

For establishments created or abolished during the year, the limit of the exempt contributions per establishment and per year is calculated in proportion to the number of months in the year during which remuneration was paid to an employee or agent.

If, during a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question. It also loses it for the following years as long as it does not meet all the conditions of a GAME: titleContent.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social contributions.

In order to benefit from the exemption, the company does not need to make a prior declaration to the Urssaf. The exemption is applicable every month from the beginning of the financial year from the moment the company considers that it meets the conditions required to benefit from this exemption.

The company applies itself the exemption by filling out the summary statement of contributions.

A company that wants to know if it meets the conditions to be a GAME: titleContent may send to the tax authority a request for an opinion.

This request must be made taking into account the model next:

Model Request for Opinion for Young University company (GAME) Status

It must be addressed by registered letter with acknowledgement of receipt or by direct delivery against discharge to the departmental directorate of public finance on which the company depends:

To have the status of young growth company (JEC), the company must meet the following conditions:

• Being a SMB: titleContent : it employs less than 250 people and carries out a less than turnover €50 million or has a total balance less than €43 million
• It must have been created since then under 8 years to benefit from social and tax exemptions (the company permanently loses the status of JEI in the year of its 8^e birthday)
• She's made R&D expenditure representative between 5-15% charges. Foreign exchange losses and net expenses on disposals of investment securities, which are tax deductible for the current accounting year, shall not be taken into account. Expenses incurred by other young growth companies or young innovative companies carrying out research and development projects are also not taken into account
• She fills the economic performance criteria following:
  
  • The number of employees in the company has increased by at least 100% and at least 10 full-time equivalent (FTE) employees, compared to the one recorded at the end of the financial year preceding the penultimate financial year .
  • The amount of its research expenditures in the fiscal year for which the number of staff increased did not decrease from the previous year
• Its capital must be held for 50% at least by one of the following persons or entities:
  
  • Natural person : Individual entrepreneur (IS), individual
  • Other IED held at least at 50% by natural persons
  • Association or foundation recognized as being of public interest of a scientific nature
  • Public research and teaching establishment or one of its subsidiaries
  • investment business
• She exercises a new activity : that is, it was not created as part of a concentration, restructuring, extension or take-over of existing activities.

Exemption from income tax

One JEC: titleContent created before 1^er january 2024 may benefit from exemption from income tax equal to 100% during sound 1^er profitable year.

It can then benefit from a tax exemption on profits equal to 50% for the following financial year.

The exemption from income tax applies to financial years ended from 1^er june 2024.

When the JEC no longer fulfills one of the requirements, it loses the benefit of total exemption income tax on its 1^er beneficiary year. On the other hand, it may benefit from an exemption from income tax of up to 50%for the financial year in which it ceased to fulfill one of the required conditions and for the following financial year.

Tax exemption on built properties

Municipalities and their own-tax public inter-municipal cooperation establishments (EPCIs) may, on deliberation, decide to exempt buildings owned by JEC: titleContent.

In order to obtain the exemption, the company must subscribe to a return with the company tax office (SIE)on which it depends:

This statement must be endorsed before 1^er January of the first year during which it wishes to benefit from that exemption.

It lasts 7 years.

Exemption from real estate contributions by companies (CFE)

Municipalities and their own tax-based public institutions for inter-municipal cooperation (EPCI) may, on deliberation, decide to exempt the JECs created before 31 december 2025.

This exemption relates to the share of the companies' property levy (CFE) that goes to each municipality or EPIC with its own taxation system.

It lasts 7 years.

The company must submit an application for exemption for each establishment to company Tax Service (SIE)the establishment of which is responsible for:

The request has to be made on or before one of the following dates depending on the company's situation:

• The 2nd^e working day following 1^er May of the previous year that for which exemption is sought
• In the case of establishment, change of operator or activity during the year: on 2^e working day after 1^er May of the following year creation or change. An interim return must be provided by 1^er January of the year following the year of creation or change.

Is it possible to combine exemptions?

One JEC: titleContent who benefits from the income tax exemption may also apply for the research tax credit (RIC).

However, she won't be able to benefit from it exemptions and benefits granted to the following companies:

• new company
• Company set up in an urban free zone (ZFU-TE: titleContent)
• Company set up in rural revitalization areas (ZRR: titleContent)
• Company in a dynamic urban basin (BUD: titleContent)
• Company created in priority development area (ZDP: titleContent)

If the company qualifies for one of these schemes, it must opt for to benefit from the JEIC scheme. By default, it is subject to the regime of one of the categories mentioned above. By opting for the JEIC scheme, it renounces the exemptions granted to it by its other scheme.

This option can be taken at any of the following times:

• In the 9 months after the start of business
• In the First 9 months of the accounting year in which the option is exercised

This option is irrevocable.

A young growth company (JEC) before 31 december 2025 may benefit from exemption from employer's social security contributions and family allowances.

The exemption applies if the following 2 conditions are met:

• The proportion of the monthly remuneration taken into account must not exceed €8,108.10.
• The amount of the exemption may not exceed €231,840 by establishment and by calendar year.

The remuneration concerned shall be that paid to the following persons:

• Employees performing any of the following functions:
  
  • Research engineer
  • Technician
  • R&D Project Manager
  • Legal officer in charge of industrial protection and technology agreements related to the project
  • Pre-competitive testing staff
  • Personnel directly involved in prototype design or pilot installation of new products
• Agents of the company which are principally engaged in the following activities:
  
  • Company Research and Development Project
  • Performing prototype design operations or pilot installations of new products

For establishments created or abolished during the year, the limit of the exempt contributions per establishment and per year is calculated in proportion to the number of months in the year during which remuneration was paid to an employee or agent.

If, during a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question. It also loses it for the following years as long as it does not meet all the conditions of a JEC: titleContent.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social contributions.

In order to benefit from the exemption, the company does not need to make a prior declaration to the Urssaf. The exemption shall apply every month from the beginning of the financial year from the moment when the company considers that it meets the conditions required to benefit from this exemption.

The company applies itself the exemption by filling out the summary statement of contributions.