Reform of new-generation enterprise zones (ZFANG) in the overseas departments

Article 19 of the 2019 Finance Act reforms overseas enterprise zones (Art. 44 quaterdecies, 1388 quinquies, 1395 H and 1466 F of the General Tax Code): the profit allowance and the property tax and business property contribution allowances become permanent and non-decreasing, with a higher rate for certain territories and priority sectors, while urban free zone and rural revitalisation zone exemptions no longer apply to activities created in the overseas departments after 31 December 2018. The list of eligible sectors is changed and some sectors (accounting, consulting, engineering) leave the scheme after a transitional period.