2 septies : Companies located in employment areas to be revitalised

I. - Taxpayers who create activities between 1 January 2007 and 31 December 2023 in the employment areas to be redynamised defined in 3 bis of article 42 of law no. 95-115 of 4 February 1995 on regional planning and development are exempt from income tax or corporation tax on profits from activities located in the employment area and made until the end of the eighty-third month following the start of activity in the employment area. Taxpayers who set up a business on or after 1 January 2014 benefit from the exemption referred to in the first sentence in respect of profits from businesses located in the employment area and generated until the end of the fifty-ninth month following the start of business in the employment area. The taxpayers referred to in the second sentence lose the benefit of the exemption from the financial year in which they distribute dividends to their shareholders.

The benefit of the exemption is reserved for taxpayers carrying on an industrial, commercial or craft activity within the meaning of Article 34 and 5° of I of the article 35, with the exception of equipment leasing and the leasing of buildings for residential or agricultural use within the meaning of article 63, under the conditions and within the limits set by this article. The exemption applies under the same conditions and limits to companies subject to corporation tax carrying on a non-commercial professional activity within the meaning of 1 of Article 92.

The exemption does not apply to the creation of activities in employment areas to be redynamised following the transfer of a business previously carried on by a taxpayer who benefited in respect of one or more of the five years preceding that of the transfer from articles 44 sexies, 44 septies, as it stood prior to Finance Act no. 2021-1900 of 30 December 2021 for 2022, 44 octies, as it read prior to the same law, 44 octies A, 44 quindecies, 44 sexdecies and 44 septdecies or the regional development premium.

The exemption does not apply to taxpayers who create an activity as part of a transfer, concentration or restructuring of pre-existing activities carried out in employment areas to be redynamised or who take over such activities, except for the remaining period, if the activity taken over or transferred benefits or has benefited from the exemption scheme provided for in this article.

When a taxpayer whose non-sedentary business is located in an employment area to be redynamised but carried on in whole or in part outside such an employment area, the exemption applies if that taxpayer employs at least one full-time sedentary employee, or equivalent, carrying out his duties in the premises allocated to the business or if that taxpayer achieves at least 25% of his turnover from customers located in such an employment area.

II. - The profit exempted in respect of a tax year or financial year is that declared in accordance with the procedures set out in articles 50-0,53 A, 96 à 100,102 terand 103, less the following gross proceeds, which remain taxable under the conditions of ordinary law:

a) Income from shares or units in companies, income from companies or bodies subject to the regime provided for in Article 8, when they do not derive from an activity carried out in a redynamising employment area, and income from the sale of company shares;

b) Income corresponding to subsidies, gifts and debt waivers ;

c) Income from receivables and financial transactions for the amount that exceeds the amount of financial expenses incurred during the same financial year or the same tax year if the taxpayer is not a credit institution or finance company referred to in article L. 511-1 of the Monetary and Financial Code;

d) Income from industrial and commercial property rights where these rights do not originate in the activity carried out in a redynamising employment area.

Where the taxpayer does not carry out all of its activity in a redynamising employment area, the exempt profit is determined by allocating the amount resulting from the calculation thus made to the ratio between, on the one hand, the sum of the business property tax assessment items defined in article 1467 relating to the activity carried out in a regeneration employment area and relating to the period for which the profits are taxed and, on the other hand, the sum of the taxpayer's business property tax assessment items defined in the same article for the said period. For the determination of this ratio, the rental value of fixed assets liable to property tax is that determined in accordance with Article 1467 on 1 January of the year in which the financial year is closed or on 1 January of the year in which the profits are taxed.

By way of exception to the sixth paragraph, a taxpayer engaged in the business of letting buildings is only exempt in respect of profits from buildings located in a redynamising employment area. This provision applies regardless of where the lessor is established.

The benefit of the exemption is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. However, at the option of companies carrying out the operations mentioned in I in a regional aid area, the benefit of the exemption is subject to compliance with Article 14 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.

The option mentioned in the eighth paragraph is irrevocable for the duration of the exemption. It must be exercised within six months of the transactions mentioned in I.

III. - Where the taxpayer referred to in I is a company that is a member of a tax group referred to in Article 223 A or Article 223 A bis, the exempted profit is that of that company determined in accordance with the conditions set out in II, within the limit of the group's overall profit.

When meeting the conditions required to benefit from the provisions of one of the schemes provided for in articles 44 sexies, 44 octies A, 44 quindecies, 44 sexdecies or 44 septdecies and the scheme provided for in this article, the taxpayer may opt for the latter scheme within six months of starting business. The option is irrevocable.

IV. - The reporting obligations of the persons and organisations concerned by the exemption are set by decree.

V. - (disjoint)