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What are the exemptions in urban areas to be revitalized (BUD)?

Verified 01 January 2022 - Directorate for Legal and Administrative Information (Prime Minister)

Small and medium-sized companies (SMEs) settled in a urban basin to be dynamised (some municipalities in the Nord and Pas-de-Calais regions) are eligible for tax exemptions. They concern income tax (IR), business tax (IS), company property tax (CFE) and property tax.

A company created in some communes of the Nord and Pas-de-Calais may benefit from total and then partial exemption from income tax (IR). It must have settled there between the 1er January 2018 and December 31, 2023 and conduct its activities there.

What's this about?

A company located in a BUD can benefit from an income tax exemption.

The exemption from realized profits shall be total from the date of establishment of the company until the 23e month after the company is created.

For the next 3 years, the company benefits from a abatement equal to:

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

What are the conditions?

General case

In order to benefit from this exemption, the company must meet all of the following conditions:

  • The company is a SMB engaged in an industrial, commercial or craft activity
  • The company was created between 1er January 2018 and December 31, 2023 in a BUD
  • The head office and all its activities are located in the BUD
  • The capital of the company shall not be held, directly or indirectly, for more than 50% by other businesses
  • It is not a takeover, transfer, concentration, restructuring or extension of pre-existing activities
  • Half of the company's employees have a CDI or a CDD of at least 1 year and reside in the BUD
mobile company

In order to benefit from this exemption, the company must meet all of the following conditions:

  • The company is a SMB engaged in an industrial, commercial or craft activity
  • The company was created between 1er January 2018 and December 31, 2023 in a BUD
  • 85% minimum turnover is achieved in the BUD
  • The capital of the company shall not be held, directly or indirectly, for more than 50% by other businesses
  • It is not a takeover, transfer, concentration, restructuring or extension of pre-existing activities
  • Half of the company's employees have a CDI or a CDD of at least 1 year and reside in the BUD

A company created in some communes of the Nord and Pas-de-Calais may benefit from total and then partial exemption from business tax (IS). It must have settled there between the 1er January 2018 and December 31, 2023 and conduct its activities there.

What's this about?

A company located in a BUD can benefit from a business tax exemption.

The exemption from realized profits shall be total from the date of establishment of the company until the 23e month after the company is created.

For the next 3 years, the company benefits from a abatement equal to:

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

What are the conditions?

General case

In order to benefit from this exemption, the company must meet all of the following conditions:

  • The company is a SMB engaged in an industrial, commercial or craft activity
  • The company is created between 1er January 2018 and December 31, 2023 in a BUD
  • The head office and all its activities are located in the basin
  • The capital of the company shall not be held, directly or indirectly, for more than 50% by other businesses,
  • It is not a takeover, transfer, concentration, restructuring or extension of pre-existing activities
  • Half of the company's employees have a CDI or a CDD of at least 1 year and reside in the BUD
mobile company

In order to benefit from this exemption, the company must meet all of the following conditions:

  • The company is a SMB engaged in an industrial, commercial or craft activity
  • The company is created between 1er January 2018 and December 31, 2023 in a BUD
  • 85% minimum turnover is achieved in the BUD
  • The capital of the company shall not be held, directly or indirectly, for more than 50% by other businesses
  • It is not a takeover, transfer, concentration, restructuring or extension of pre-existing activities
  • Half of the company's employees have a CDI or a CDD of at least 1 year and reside in the BUD

An SME which is exempt from income tax may benefit from an exemption from company tax (CFE) from the year following its establishment. The company must be implanted in the BUD between 1er January 2018 and December 31, 2023 and conduct its activities there.

The exemption is total for 7 years. It concerns half the value of the property imposed on the CFE.

For the next 3 years, the company benefits from a abatement equal to:

  • 75% 8re year,
  • 50% 9e year,
  • 25% 10e year.

An SME owning a building in a BUD can benefit from a property tax exemption on built properties (TFPB) from the year following its creation. The company must be implanted in the BUD between 1er January 2018 and December 31, 2023 and conduct its activities there.

The exemption shall be total for 7 years. It relates to half the value of the property taxed.

For the next 3 years, the company benefits from a abatement equal to:

  • 75% 8re year,
  • 50% 9e year,
  • 25% 10e year.

Form 15975 must be sent to the tax department of the companies on which the company depends in order to obtain the TFPB exemption.

Property tax on built-up property - Arrangements for certain buildings in an urban area to be revitalized

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