Tax Relief in Priority City Areas (QPV)
Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)
Very small companies (TPEs) and small companies located in priority areas of the city (QPV) can benefit from exemptions from company property tax (CFE) and property tax on built property (TFPB).
TYPE
These are the companies that are being created between 1er January 2015 and December 31, 2023 (or already settled to 1er january 2015) in a city policy priority area (QPV), and satisfying the following 3 conditions:
- Commercial activity (listed in SCR: titleContent and the RNE: titleContent)
- Less than 11 employees
- Annual turnover or balance sheet below €2 million
- The capital and voting rights shall not be held in 25%by several companies meeting all of the following conditions:
- Staff of 250 or more
- Annual turnover HT: titleContent greater than €50 million or annual balance sheet exceeding €43 million
FYI
the establishment which was established from january 2016 cannot benefit from an exemption from the company property tax (CFE) and the property tax on built property (TFPB) only if city contract to 1er January of the year of implementation.
Small company
These are the companies between the 1er January 2017 and December 31, 2023 (or already settled to 1er january 2017) in a city policy priority area (QPV), and satisfying the following 3 conditions:
- Commercial activity (listed in SCR: titleContent and the RNE: titleContent)
- Less than 50 employees
- Annual turnover or annual balance sheet below €10 million
- The capital and voting rights shall not be held in 25%by several companies meeting all of the following conditions:
- Staff of 250 or more
- Annual turnover excluding VAT greater than €50 million or annual balance sheet exceeding €43 million
The establishment which was established from January 2016 will only be eligible for an exemption from the CFE and TFPB if there is a city contract to 1er January of the year of implementation.
Warning
The right to the exemption is definitively lost if no application has been made before 31 December 2017.
Commercial establishment across the track from a PVQ
Commercial establishments located on the other side of the track delimiting a city policy priority area (QPV) may also benefit from tax exemptions.
The postal address is the eligibility criterion.
Exemption period from the EWC
The exemption from CFE is total for 5 years.
Secondly, the taxable amount shall benefit from a abatement which gradually decreases:
- 60% 6e year
- 40% 7e year
- 20% 8e year
A company which is exempt from the CFE may also apply for an exemption from the company value added tax (VAAC).
Amount of the CEEC exemption ceilings
For 2020 | For 2021 | For 2022 | For 2023 | |
|---|---|---|---|---|
Creation or extension of QPV establishments | €29,532 | €29,886 | €29,796 | €30,630 |
Commercial activities already established in N-1 | €79,661 | €80,617 | €80,375 | €82,626 |
The total amount of aid (including CFE and TFPB) must not exceed €200,000 out of 3 drills tax.
Warning
Municipalities and their public institutions for inter-municipal cooperation (EPCI) with their own tax system may abolish the exemption by deliberation before 1er October of a year. This deletion shall apply in the following year.
How to benefit from the exemption
The company must report annually the items (business premises) that fall within the scope of the CFC exemption. It must indicate that it wishes to benefit from the exemption in one of the following 2 declarations:
- In case of creation of company, the 1447C declaration
- In case extension, the 1447M declaration
On which premises does the TFPB exemption apply?
The exemption applies to premises located in the QPVs that meet one of the following conditions:
- The facility exists at 1er january 2017 and is attached on that date to an establishment which qualifies for the exemption from CFE
- The room has been attached between on 1er January 2017 and December 31, 2023 to an establishment benefiting from an exemption from CFE.
What is the TFPB exemption period?
The exemption lasts 5 years.
It shall cease to apply from one of the following two dates:
- The 1er January of the year following the year in which the buildings are no longer used for commercial purposes
- The 1er January of the 2e year which follows the reference period during which the company no longer fulfills the conditions for exemption
Warning
In the event of a change of operator during an exemption period, the exemption shall be maintained for the remainder of the period under the conditions laid down for the predecessor.
Is there a condition on the amount of the TFPB?
The amount of aid granted to the company must not exceed €200,000 out of 3 drills tax.
Warning
Municipalities and their public institutions for inter-municipal cooperation (EPCI) have their own tax system can remove the exemption by deliberation before 1er October of a year. This deletion shall apply in the following year.
How do I apply for exemption?
The company wishing to benefit from the exemption from the property tax on built property must send a declaration to the tax office of the place where the premises are situated. This shall include the following particulars identifying the premises concerned:
- Activity carried out principally on the premises
- Number of employees of the operating company as at 1er January 2015 or on the date of its creation or commencement of activity in the immovable, whichever is later
- Option for the exemption scheme
- Amount of annual turnover net of VAT during the reference period for the taxation of CFEs established for the year 2015 for the establishment operating in the premises eligible for the exemption
- Balance sheet total, end of same period
Who shall I contact
The company must apply for exemption in accordance with the model issued by the tax authorities.
- General Tax Code: Article 1383c bProperty Tax Exemption on Built Property (TFPB)
- General Tax Code: Article 1466AExemptions from property contributions by companies: Art 1466 A I F