Optional three-year CFE exemption for new and extended establishments

Article 120 of the 2021 Finance Act reinstates Article 1478 bis of the General Tax Code: municipalities and inter-municipal bodies with their own taxation may, by resolution, exempt new and extended establishments from the business property contribution for three years, starting from the year following the creation or the second year following the extension. The exemption covers the whole share accruing to the authority that adopted the resolution and must be requested by the business within the filing deadlines. The same article redefines an establishment extension as the net increase in the tax base. It applies to creations and extensions occurring from 1 January 2021.