2 nonies: Businesses located in business tax-free zones in overseas departments

I. - The profits of businesses from operations located in Guadeloupe, French Guiana, Martinique, Mayotte or La Réunion may be subject to an allowance under the conditions set out in II or III when these businesses meet the following conditions:

1° They employ fewer than two hundred and fifty employees and have annual sales of less than €50 million;

2° The main activity of the business falls within one of the sectors of activity eligible for the tax reduction provided for in Article 199 undecies B;

3° They are subject either to a real taxation system or to one of the systems defined in Articles 50-0 , 64 bis and 102 ter;

The conditions provided for in 1° and 2° are assessed at the close of each financial year in respect of which the allowance provided for in the first paragraph is applied. The condition provided for in 3° must be satisfied for each financial year in respect of which this allowance is applied.

II. - The profits referred to in I, made and declared in accordance with the procedures set out in articles 50-0,53 A, 64 bis, 72,74 to 74 B, 96 to 100,102 ter and 103by companies meeting the conditions set out in I, with the exception of capital gains recognised on the revaluation of assets, are subject to an allowance, up to a limit of €150,000, in respect of each financial year commencing on or after 1 January 2008.

The rate of the allowance is set at 50%.

III. - The limit and the rate of the allowance referred to in II are increased in the following cases:

1° For profits from farms located in French Guiana and Mayotte;

2° (repealed)

3° For profits from farms located in Guadeloupe, Martinique or La Réunion and which carry out their main activity in one of the following sectors:

a) Research and development;

b) Information and communication technologies;

c) Tourism, including related leisure and water sports activities;

d) Agro-nutrition;

e) Environment;

f) Renewable energy;

g) Buildings and public works;

h) Processing of products for construction and cosmetic and pharmaceutical production.

4° For the profits of businesses from holdings located in Guadeloupe, Martinique or Réunion when these businesses:

a) (repealed)

b) Benefit from the inward processing arrangements defined in Article 256 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 establishing the Customs Code of the Union, provided that at least one third of the holding's turnover, in respect of the financial year during which the allowance is applied, results from operations involving goods that have benefited from these arrangements

The allowance limit is set at €300,000. The rate of the allowance is set at 80%.

IV. (repealed)

IV bis. - 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 profit that is subject to an allowance is that determined as if the company were taxed separately, without exceeding that determined under the conditions of 4 of article 223 I.

For all the companies in the same group, the cumulative amount of the allowances may not exceed:

1° Neither the group's overall income;

2° Nor the amount mentioned in the first paragraph of II. For the assessment of this condition, half of the amount of the allowances whose amount is limited by the last paragraph of III is retained.

V. - (repealed)

VI. - The deductions provided for in II and III are deducted from the results of the farms declared in application of article 53 A.

VII. - When it meets the conditions required to benefit from the scheme provided for in articles 44 sexies, 44 nonies, 44 terdecies, 44 sexdecies or 73 B and the scheme provided for in this article, the company may opt for the latter scheme within six months of starting business. The option is irrevocable and entails definitive renunciation of the other schemes. If the company does not exercise this option within this period, it will automatically benefit, at the end of the period of application of one of these other schemes from which it benefited, from the scheme provided for in this article for the period remaining until its end and in accordance with the terms and conditions governing it.

VIII. - The reporting obligations of companies are set by decree.

IX. - The benefit of the allowance referred to in I is subject to compliance with 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.