Young innovative companies: smoother phase-out of social exemptions and shorter profit-tax exemption

The fourth amending finance law for 2011 softens the phase-out of employer contribution exemptions for young innovative companies introduced in 2011: after the full exemption, the rate is set at 80%, 70%, 60% and then 50% from the fourth to the seventh year, and the per-establishment ceiling is raised from three to five annual social security ceilings. In return, the full profit-tax exemption, previously granted for the first three profitable financial years and then at 50% for the next two, is limited to the first profitable financial year (twelve months at most), followed by one year exempt at 50%.