Réunion: increased activity free zone allowances in six municipalities of intermunicipal bodies with a poverty rate above 40%
Article 18 of the 2026 budget act restores, within the new-generation activity free zones regime (ZFANG, Articles 44 quaterdecies, 1388 quinquies and 1466 F of the General Tax Code), an increased allowance for businesses located in Réunion municipalities belonging to an intermunicipal body that is particularly disadvantaged in terms of poverty rate. Decree No. 2026-421 of 29 May 2026 sets the threshold at a poverty rate (share of the population below 60% of median disposable income, 2021 INSEE data) above 40% and designates six municipalities: Bras-Panon, La Plaine-des-Palmistes, Saint-André, Saint-Benoît, Sainte-Rose and Salazie.
Measure originators
No official estimate found for this measure.
Measure impact
Businesses in eligible sectors located in these six municipalities benefit, according to the decree's explanatory note, from allowances raised to 80% (instead of 50%) on their taxable profit and property tax, and to 100% (instead of 80%) on their business property contribution (CFE): for profit taxes for 2025 to 2029, and for property tax and CFE from 2026 to 2030.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Entry into force
Immédiate ou à la date prévue
Publication in Official Journal
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration