Cap on the social contribution exemption in urban free zones at 1.4 times the minimum wage
Article 162 of the 2006 Finance Act amends Article 12 of Act No. 96-987 of 14 November 1996 on the urban recovery pact. For earnings and pay paid from 1 January 2006, the employer contribution exemption granted to employers located in an urban free zone (zone franche urbaine) is calculated within the limit of the number of paid hours multiplied by the minimum wage (SMIC) plus 40%. The scheme was amended later.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Employers located in urban free zones are only exempt on the share of pay up to 1.4 times the hourly minimum wage, for wages paid from 1 January 2006.
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
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle