Creation of new urban tax-free zones on 1 January 2004

Article 23 of the Act of 1 August 2003 creates, from 1 January 2004, new urban tax-free zones (zones franches urbaines) in the neighbourhoods listed in its Annex 2, inserted as I bis of the annex to Act No. 96-987 of 14 November 1996. Businesses operating or set up there between 1 January 2004 and 31 December 2008 receive the profit tax exemption of Article 44 octies of the General Tax Code (Art. 26), a five-year property tax exemption unless the local authority decides otherwise (Art. 27), five-year employer social contribution exemptions (Art. 31) and, for the self-employed, health contribution exemptions (Art. 33); Article 34 extends the social exemption to associations. According to the Senate finance committee opinion, the bill provided for forty-one new neighbourhoods.