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This chapter is not exhaustive and is limited to broadly outline the tax consequences of the main events occurring when doing business in France. It does not constitute a tax advice or a client - attorney relationship. Materials are not suitable for tax analysis. Visitors are invited to consult a tax lawyer before taking any decision.
 Areas providing tax incentive
 Areas providing tax incentive
Should certain conditions be met, newly created enterprises located in specific areas designed by decree (for example Dunkerque), in Corsica or in overseas departments benefit from tax holidays.
These tax incentives are granted in income tax and corporate tax but also in business tax, real estate tax, registration duties and may also be granted in social taxes.
The different types of providing tax incentives are :
Zones d’aménagement du territoire (ZAT)
Territoires ruraux de développement prioritaire (TRDP)
Zones de revitalisation rurale (ZRR)
Zones urbaines sensibles (ZUS)
Zones de redynamisation urbaine (ZRU)
Zones franches urbaines (ZFU)
Corsica
DOM (Overseas districts)
Pôles de compétitivité (Business area for competitiveness)
Creation of business area for competitiveness
When conditions are met, companies participating to research and development project and located in business area for competitiveness are exempt from income tax and alternative minimum income tax during the 3 first profitable fiscal years, the period of which cannot exceed 36 months. The 2 following profitable tax years will benefit from a 50% exemption. If conditions are met, the eligible entities may also benefit from a 5 years holidays for business tax and real property tax. The consolidated exemption (CIT/AMT/BT/RPT) cannot exceed 100 000 euros per 36 months period.
In addition some categories of employees may benefit of a social tax rebate (SME = 50%; other = 25%).
The list of the specific areas is available at the tax departmental directorate, or at a department of the Ministry of social affairs whose address and phone number are the following:
Ministère des affaires sociales
194, av. du Président Wilson
93217 La Plaine Saint Denis
FRANCE
Téléphone +33 1 49 17 46 46
Télécopie +33 1 55 93 17 94
Depressed urban area "ZFU"
On June 22, 2006, the European Commission approved the extension of the existing aid scheme for depressed area "ZFU". This aid scheme provides for exemptions of income tax, business tax, local taxes and employer social contribution for business up to 50 employees.
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