Which municipalities are concerned?

A company set up in an urban catchment area (BUD) may benefit from total and then partial exemption from income tax (IR) or business tax (IS).

The company must be established there between 1^er January 2018 and December 31, 2026 and conduct its activities there.

The municipalities classified in a BUD are located in the departments of Nord and Pas-de-Calais.

What are the conditions for the exemption?

In order to benefit from an exemption from income tax, the company must meet certain conditions which are different when the company's activity is non-sedentary. This is the case when the activity is largely carried out outside business premises, for example at the customer's premises or in public spaces (building contractors, babysitting and personal services, commercial agent, street trader, taxis, etc.).

What is the exemption?

A company located in a BUD may benefit from an exemption from income tax. We are talking about a preferential system.

The income tax exemption is total to be counted date of creation and until the end of 23^e month after the company is created.

The Next 3 years, the company benefits from deductions following:

• 75% 3^re year
• 50% the 4^e year
• 25% the 5th^e year.

Future heads of company can ask the tax administration whether the company can benefit from the tax relief scheme. The request must be addressed by post, under registered post with acknowledgement of receipt, or deposed with the company Tax Service (SIE) against discharge.

Such consultation of the administration shall be prerequisite the creation of the company.

The administration has 3 months to respond.

How do I get the exemption?

The company that meets the conditions must postpone the amount of exempt profit on its statement of result. This income statement differs according to the tax system of the company: actual taxation system, simplified system of taxation or micro-company system.

Where the company is eligible for other exemption schemes, it must make an election. In order to benefit from the exemption scheme in a BUD, it must then opt for this exemption scheme within 6 months of starting business. This option results in the final waiver of the other schemes: Defense Restructuring Areas (DRAs), young innovative company (JEI), Rural Revitalization Areas (RRZs) or Areas France Rural Revitalization (FRRs), urban free zones-entrepreneur territories (ZFU-TE).

The option is sent to the company Tax Service (SIE) on which the company depends.

One SMB may benefit from temporary exemption company property contributions (CFE) and company value added contributions (CVAE) from the year following its establishment.

The CFC exemptions apply if both of the following conditions are met:

• The place of taxation is located in a BUD
• The company benefits from the income tax exemption. It must therefore be implanted exclusively in BUD. If the activity is not sedentary, it must meet the conditions for implantation in a BUD. The company must be implanted in the BUD: titleContent between 1^er January 2018 and December 31, 2026 and conduct its activities there.

CVAE and CFE Exemption Mechanism

This exemption concerns the establishment of establishments, i.e. any new establishment of a company where it does not result from a transfer of activity and does not constitute a change of operator.

It exists 2 types of exemption :

• Exemption automatic (de jure) relating to the half the value of the property imposed on the CFE. She's total for 7 years from the year following that in which the establishment was established. For the next 3 years, the net taxable base of the last exemption year is subject to the deductions following: 75% 8^e year, 50% 9^e year, 25% 10^e year. The automatic exemption may be supplemented by an optional exemption.

• Optional exemption relating to the other half of the taxable amount. It shall be decided on the basis of the deliberations of the municipalities and EPCI: titleContent. It is total for 7 years and then a reduction is applicable for the following 3 years. This deliberation of optional exemption from CFE extends to the CVAE.

Application for exemption from CFE and CVAE

A company wishing to benefit from the exemptions must apply by completing the following forms:

• In case of establishment, the company fills out the form 1447-C-SD and the following Annex 1447-E:

Initial Declaration 1447-C-SD (CFE)

Initial Declaration, Annex 1447-E (CFE)

That request is being made before 31 December the year following the year in which the establishment was established. It must be filed with the company Tax Service (SIE)

• In other cases, the company fills out the form 1447-M-SD and the following Annex 1447-E:

Amending Declaration 1447-M-SD (CFE)

Amending Declaration, Annex 1447-E (CFE)

These forms must be submitted by the 2nd working day on 1 May with the company Tax Service (SIE) on which the company depends.

One SMB, owner of a building situated in a BUD: titleContent, may be exempted from property tax on built property (TFPB) from the year following its establishment.

The company must be implanted in the BUD between 1^er January 2018 and December 31, 2026 and conduct its activities there.

It exists 2 types of exemption :

• Automatic Exemption (or of right) in respect of half the value of the property taxed. She's total for 7 years from the year following that in which the establishment was established. For the next 3 years, the net taxable base of the last exemption year is subject to the deductions following: 75% 8^e year, 50% 9^e year, 25% 10^e year.
• Optional exemption for the other half of the tax base. This exemption applies if the municipality and the EPCI: titleContent with their own tax system have voted for it. It applies for 7 years, then for the next 3 years it takes the form of the following reductions: 75% 8^e year, then from 50% 9^e year and 25% 10^e year.

Form No. 6766-SD to benefit from the exemptions must be sent to the company tax office (SIE) on which the company depends.

Claiming the benefit of the arrangements in favor of certain buildings located in an urban basin to be revitalized for the property tax on built-up properties