Creation of fifteen third-generation urban free zones and exemptions open until 2011

Articles 26 to 35 of the Equal Opportunities Act create urban free zones (ZFU) from 1 August 2006 in neighbourhoods of more than 8,500 inhabitants; Decree No. 2006-930 of 28 July 2006 lists them (14 in mainland France, 1 in Réunion). Businesses with no more than 50 employees that set up or operate there between 1 January 2006 and 31 December 2011 are exempt for five years from tax on profits (CGI art. 44 octies A, exempt profit capped at €100,000 a year plus €5,000 per hired employee living in a ZUS or ZFU), business tax (art. 1466 A I sexies) and property tax (art. 1383 C bis), unless local authorities decide otherwise, and from employer contributions and, for the self-employed, health and maternity contributions. The opening periods of existing ZFUs are extended to 31 December 2011.