Competitiveness clusters: exemptions from profit tax, minimum flat-rate tax, employer contributions and local taxes

Article 24 of the 2005 Finance Act defines competitiveness clusters and creates a regime for companies taking part in an approved R&D project located in a cluster's R&D zone: profit tax exemption for three financial years then a 50% allowance for two (Article 44 undecies of the General Tax Code), exemption from the minimum flat-rate tax (IFA), local business tax and land tax exemption for five years by local decision, and a 50% employer contribution exemption for SMEs (25% for others). Projects could not be submitted after 31 December 2007. Application requires the designation of clusters and zones by decree.