Tax exemptions for businesses created in 'urban areas to revitalise' (BUD)
Creation of urban areas to revitalise (BUD), made of municipalities in groups of inter-municipal bodies with at least one million inhabitants combining density, low income and high unemployment, designated by order for three years from 1 January 2018. SMEs created there between 1 January 2018 and 31 December 2020 are exempt from income tax or corporate tax for two years, then taxed on 25%, 50% and 75% of their profits over the next three years. They also benefit from exemptions from the business property contribution (CFE) and property tax, partly optional for local authorities. The scheme was later extended and now covers businesses created up to 31 December 2026.
Measure originators
European origin
EUA positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Newly created industrial, commercial or craft SMEs in a BUD, with their head office and activity located there and at least half of their employees living there: profits fully exempt for 24 months then on a declining basis; half of the CFE base exempt for seven years from the year after creation. Cost estimated at €15m in 2019, up to €43.3m in 2021.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)