French General Tax Code
In forceI. - Companies operating in Mayotte and taxed on the basis of their actual profits or exempt pursuant to Articles 44 sexies, 44 sexies A, 44 octies A and 44 duodecies to 44 septdecies may benefit from a tax credit aimed at financing the improvement of their competitiveness through, in particular, efforts in the areas of investment, research, innovation, training, recruitment, prospecting for new markets, ecological and energy transition and rebuilding their working capital. In its annual accounts, the company shall track the use of the tax credit in accordance with the objectives mentioned in the first sentence. Information relating to the use of the tax credit for competitiveness and employment must appear, in the form of a literary description, in the appendix to the balance sheet or in a note attached to the accounts. The tax credit may not be used to finance an increase in the share of profits distributed, nor to increase the remuneration of persons exercising management functions in the company. Public establishments, local authorities and not-for-profit organisations may benefit from the tax credit referred to in this I in respect of the remuneration they pay to their employees assigned to profit-making activities. The organisations mentioned in Article 207 may also benefit from the tax credit mentioned in this paragraph in respect of the remuneration they pay to their employees assigned to their activities that are not exempt from income tax. These organisations may also benefit from it in respect of remuneration paid to employees assigned to their exempt activities after the European Commission has declared this provision compatible with European Union law.
II. - The tax credit referred to in I is based on the remuneration paid by companies to their employees assigned to operations located in Mayotte during the calendar year. Remuneration, as defined for the calculation of social security contributions in article L. 242-1 du code de la sécurité sociale, not exceeding two and a half times the minimum growth wage calculated for one year on the basis of the legal working time increased, where applicable, by the number of hours of overtime or additional hours, without taking into account the increases to which they give rise. For employees who are not employed full-time or who are not employed throughout the year, the minimum growth wage taken into account is that which corresponds to the working time provided for in the contract in respect of the period during which they are present in the company.
To be eligible for the tax credit, the remuneration paid to the employees must be deducted for the purposes of calculating income tax or corporation tax under the conditions of ordinary law and must have been duly declared to the social security bodies.
III. - The rate of the tax credit is set at 9%.
IV. - The tax credit calculated by the partnerships mentioned in articles 8,238 bis L, 239 ter and 239 quater A or the groupings mentioned in articles 238 ter, 239 quater, 239 quater B, 239 quater C, 239 quater D and 239 quinquies which are not subject to corporation tax may be used by their members in proportion to their rights in these companies or groupings, provided that they are liable for corporation tax or natural persons participating in the operation within the meaning of 1° bis of I of l'article 156.
V. - The bodies responsible for collecting the social security contributions due for employing the persons mentioned in I are authorised to receive, as part of the declarations that companies are required to make to them, and to verify, as part of the checks that they carry out, the data relating to the remuneration giving rise to the tax credit. These data relating to the calculation of the tax credit are forwarded to the tax authorities.
VI. - A decree sets out the conditions for application of this article, in particular the reporting obligations incumbent on companies and the bodies responsible for collecting social security contributions.
VII. - The benefit of the tax credit mentioned in I is subject to compliance with Article 15 of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
