Exemption from income tax

One GAME: titleContent created before december 31, 2023 can benefit from a exemption from income tax equal to 100% during its 1^er beneficiary year.

It can then benefit from an exemption from income tax equal to 50% for the following beneficiary year.

When the GAME no longer meets one of the required conditions, it loses the benefit of the total exemption income tax for its first profit year. On the other hand, it will be able to benefit from a tax exemption on profits up to 50%for the financial year in which it ceased to fulfill one of the requirements and for the following financial year.

Tax exemption on built-up properties

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt from property tax on properties built on the totality of their share of buildings belonging to GAME: titleContent, created before 31 December 2028.

To obtain the exemption, the company must Subscribe to a declaration with the company Tax Office (SIE) on which it depends:

That statement must be made before 1^er January of the first year in the course of which it wishes to benefit from that exemption.

It lasts 7 years.

Exemption from company property tax (CFE)

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt GAMBLING created before 31 December 2028.

This exemption relates to the share of the companies' property tax payable by each municipality or EPIC with its own tax system.

It lasts 7 years.

The company must apply for an exemption for each establishment to the company Tax Service (SIE)the establishment of which is subject to:

The request must be made not later than one of the following dates depending on the company's situation:

• The 2^e working day next to 1^er May of the previous year the one for which the exemption is requested
• In the event of establishment, change of operator or activity during the year: on 2^e working day after 1^er May of the following year that of creation or change. You must provide an interim declaration before 1^er January of the year following the year of creation or change.

Is it possible to cumulate exemptions?

One GAME: titleContent who benefits from the income tax exemption may also apply for the research tax credit (RIC).

However, she won't be able to benefit any more exemptions and benefits granted to:

• new company
• Rural Revitalization Area (RRA) company
• Company created in a dynamic urban basin (BUD)
• Company set up in a priority development zone (PDZ)

If the company qualifies for one of these schemes, it must opt to benefit from the status of the GAME. By default, it is subject to the rules of one of the categories mentioned above. By opting for the GAMBLING regime, it renounces the exemptions provided to it by its other regime.

This option can be taken at any of the following times:

• In the 9 months following the start of its activity
• In the 9 first months of the accounting year in which the option is exercised

This option is irrevocable.

A young university company (GAME) before 31 December 2028 may benefit from an exemption from employer's social security contributions and family allowances.

The exemption applies if the following two conditions are met:

• The part of the monthly remuneration taken into account must not exceed €8,401.58.
• The amount of the exemption shall not exceed €240,300 by establishment and by calendar year.

The remuneration concerned shall be that paid to the following persons:

• Employees performing any of the following functions:
  
  • Research Engineer
  • Technician
  • R&D Project Manager
  • Lawyer responsible for industrial protection and technology agreements related to the project
  • Pre-competitive testing staff
  • Personnel directly involved in prototype design operations or pilot installation of new products
• Corporate officers who are principally involved in the following activities:
  
  • Company Research and Development Project
  • Conducting prototype design operations or pilot installations of new products

For establishments created or abolished during the year, the limit of the exempt contributions per establishment and per year shall be calculated in proportion to the number of months of the year in the course of which remuneration has been paid to an employee or agent.

If, in a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question. It also loses it for the following years as long as it does not meet all the conditions of a GAME: titleContent.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social security contributions.

To benefit from the exemption, the company does not need to make a prior declaration to the Urssaf. The exemption shall apply every month from the beginning of the financial year from the moment the company considers that it satisfies the conditions required to benefit from this exemption.

The company applies the exemption itself by filling in the contribution summary slip.

A company that wants to know if it meets the conditions to be a GAME: titleContent may send to the tax authority a request for opinion.

This request must be made taking into account the template next:

Template for request for opinion for university young company status (JEU)

It must be addressed by registered letter with acknowledgement of receipt or by direct delivery against discharge to the Departmental Directorate of Public Finances, on which the company depends:

To have the status of young growth company (JEC), the company must meet the following conditions:

• Be a SMES: titleContent : it employs less than 250 people and performs a turnover less than €50 million or to a total balance less than €43 million
• It must have been created since under 8 years old to benefit from social and tax exemptions (the company permanently loses the status of JEI in the year of its 8^e birthday)
• She's done some R&D expenditure representative between 5-20% charges. Foreign exchange losses and net expenses on sales of investment securities, which are tax deductible for the current accounting year, are not taken into account. Charges to other young growth companies or young innovative companies carrying out research and development projects are also not taken into account
• It fills the economic performance criteria following:
  
  • The company's workforce has increased by at least 100% and at least 10 full-time equivalent (FTE) employees, as compared to the one recorded at the close of the year preceding the penultimate fiscal year .
  • The amount of its research expenditures in the year for which the number of staff increased did not decrease compared to the previous year
• Its capital must be held for 50% at least by any of the following:
  
  • Natural person : Individual contractor (IC), private individual
  • Other JEI detained at least at 50% by natural persons
  • Association or foundation recognized as being of public utility and of a scientific nature
  • Public research and educational institution or a subsidiary thereof
  • Investment business
• It exercises a new activity : that is, it was not created as part of a concentration, a restructuring, an extension of existing activities or a resumption of such activities.

Exemption from income tax

One JEC: titleContent created before 1^er January 2024 may benefit from exemption from income tax equal to 100% during its 1^er beneficiary year.

It can then benefit from an exemption from income tax equal to 50% for the following beneficiary year.

The exemption from income tax applies to closed financial years from 1^er June 2024.

When the JEC no longer fulfills one of the required conditions, it shall lose the benefit of total exemption income tax for its 1^er beneficiary year. On the other hand, it may benefit from an exemption from income tax in the amount of 50%for the financial year in which it ceased to fulfill one of the requirements and for the following financial year.

Tax exemption on built-up properties

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt from property tax on properties built on the totality of their share of buildings belonging to JEC: titleContent, created before 31 December 2028.

To obtain the exemption, the company must Subscribe to a declaration with the company Tax Office (SIE)on which it depends:

This statement must be subscribed before 1^er January of the first year in the course of which it wishes to benefit from that exemption.

It lasts 7 years.

Exemption from company property tax (CFE)

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt JEC created before 31 December 2028.

This exemption relates to the share of the companies' property tax (CFE) that belongs to each municipality or EPIC with its own tax system.

It lasts 7 years.

The company must apply for an exemption for each establishment to the company Tax Service (SIE)the establishment of which is subject to:

The request must be made not later than one of the following dates depending on the company's situation:

• The 2^e working day next to 1^er May of the previous year the one for which the exemption is requested
• In the event of establishment, change of operator or activity during the year: on 2^e working day after 1^er May of the following year that of creation or change. An interim statement must be provided by 1^er January of the year following the year of creation or change.

Is it possible to cumulate exemptions?

One JEI: titleContent who benefits from the income tax exemption may also apply for the research tax credit (RIC).

However, she won't be able to benefit any more exemptions and benefits granted to:

• new company
• Company set up in France ruralités revitalizations (FRR)
• Company created in a dynamic urban basin (BUD)
• Company set up in a priority development zone (PDZ)

If the company qualifies for one of these schemes, it must opt to benefit from the JEI scheme. By default, it is subject to the rules of one of the categories mentioned above. By opting for the JEI scheme, it renounces the exemptions provided by its other scheme.

This option can be taken at any of the following times:

• In the 9 months following the start of its activity
• In the 9 first months of the accounting year in which the option is exercised

This option is irrevocable.

A young growth company (JEC) before 31 December 2028 may benefit from an exemption from employer's social security contributions and family allowances.

The exemption applies if the following two conditions are met:

• The part of the monthly remuneration taken into account must not exceed €8,401.58.
• The amount of the exemption shall not exceed €240,300 by establishment and by calendar year.

The remuneration concerned shall be that paid to the following persons:

• Employees performing any of the following functions:
  
  • Research Engineer
  • Technician
  • R&D Project Manager
  • Lawyer responsible for industrial protection and technology agreements related to the project
  • Pre-competitive testing staff
  • Personnel directly involved in prototype design operations or pilot installation of new products
• Corporate officers who are principally involved in the following activities:
  
  • Company Research and Development Project
  • Conducting prototype design operations or pilot installations of new products

For establishments created or abolished during the year, the limit of the exempt contributions per establishment and per year shall be calculated in proportion to the number of months of the year in the course of which remuneration has been paid to an employee or agent.

If, in a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question. It also loses it for the following years as long as it does not meet all the conditions of a JEC: titleContent.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social security contributions.

To benefit from the exemption, the company does not need to make a prior declaration to the Urssaf. The exemption shall apply every month from the beginning of the financial year from the moment the company considers that it satisfies the conditions required to benefit from this exemption.

The company applies the exemption itself by filling in the contribution summary slip.

To have the status of Young Innovative Impact company (JEII), the company must complete the following conditions :

• Be a SMES: titleContent : it must use less than 250 people and to realize a turnover less than €50 million or must have a total balance less than €43 million
• To benefit from tax and social exemptions : it must have been created since:
  
  • Under 8 years old (the company permanently loses JEII status in the year of its 8^e birthday) if the company is set up after 1^er January 2023
  • Under 11 (the company permanently loses JEII status in the year of its 11th birthday) if the company is set up before 1^er January 2023
• It must carry out R&D expenditure representative enter 5% and 20% of charges. The calculation of this rate does not take into account the costs of disposals of shares or bonds, foreign exchange losses and expenses incurred with other JEIs carrying out R&D projects.
• Its capital must be held for 50% at least by any of the following:
  
  • Natural person (individual contractor, private individual, etc.)
  • Other JEI detained at least at 50% by natural persons
  • Association or foundation recognized as being of public utility and of a scientific nature
  • Public research and educational institution or a subsidiary thereof
  • Investment business
• It exercises a new activity : that is, it was not created as part of a concentration, a restructuring, an extension of existing activities or a resumption of such activities

In order to qualify for JEII status, the company must also ESUS criteria « solidarity company of social utility » or the conditions required by commercial businesses to be covered by thesocial and solidarity economy (SSE).

Here are the procedures to apply for ESUS accreditation :

What is the approval « solidarity Company of social utility »?

Ministry of Economy

Pour en savoir plus

Exemption from income tax

One JEII: titleContent created before 31 December 2023 may benefit from exemption from income tax equal to 100% during its 1^er beneficiary year.

When JEII no longer meets one of the required conditions, it shall lose the benefit of total exemption income tax for its 1^er beneficiary year. On the other hand, it may benefit from an exemption from income tax in the amount of 50%for the financial year in which it ceased to fulfill one of the requirements and for the following financial year.

Tax exemption on built-up properties

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt from property tax on properties built on the totality of their share of buildings belonging to JEII: titleContent created before 31 December 2028.

To obtain the exemption, the company must Subscribe to a declaration with the company Tax Office (SIE)on which it depends:

This statement must be subscribed before 1^er January of the first year in the course of which it wishes to benefit from that exemption.

It lasts 7 years.

Exemption from company property tax (CFE)

Municipalities and their public institutions for intercommunal cooperation (EPCI) with their own taxation may, on deliberation, decide to exempt JEII created before 31 December 2028.

This exemption relates to the share of the companies' property tax (CFE) that belongs to each municipality or EPIC with its own tax system.

It lasts 7 years.

The company must apply for an exemption for each establishment to the company Tax Service (SIE)the establishment of which is subject to:

The request must be made not later than one of the following dates depending on the company's situation:

• The 2^e working day next to 1^er May of the previous year the one for which the exemption is requested
• In the event of establishment, change of operator or activity during the year: on 2^e working day after 1^er May of the following year that of creation or change. You must provide an interim declaration before 1^er January of the year following the year of creation or change.

Can a JEII combine several tax advantages?

One JEII: titleContent who benefits from the income tax exemption may also apply for the research tax credit (RIC).

However, she won't be able to benefit any more exemptions and benefits granted to:

• new company
• Company set up in France ruralités revitalizations (FRR)
• Company created in a dynamic urban basin (BUD)
• Company set up in a priority development zone (PDZ)

If the company qualifies for one of these schemes, it must opt to benefit from the JEI scheme. By default, it is subject to the rules of one of the categories mentioned above. By opting for the JEI scheme, it renounces the exemptions provided by its other scheme.

This option can be taken at any of the following times:

• In the 9 months following the start of its activity
• In the 9 first months of the accounting year in which the option is exercised

This option is irrevocable.

An innovative young impact company before 31 December 2028 may benefit from an exemption from employer's social security contributions and family allowances.

The exemption applies if the following two conditions are met:

• The part of the monthly remuneration taken into account must not exceed €8,401.58.
• The amount of the exemption shall not exceed €240,300 by establishment and by calendar year.

The remuneration concerned shall be that paid to the following persons:

• Employees performing any of the following functions:
  
  • Research Engineer
  • Technician
  • R&D Project Manager
  • Lawyer responsible for industrial protection and technology agreements related to the project
  • Pre-competitive testing staff
  • Personnel directly involved in prototype design operations or pilot installation of new products
• Corporate officers who are principally involved in the following activities:
  
  • Company Research and Development Project
  • Conducting prototype design operations or pilot installations of new products

For establishments created or abolished during the year, the limit of the exempt contributions per establishment and per year shall be calculated in proportion to the number of months of the year in the course of which remuneration has been paid to an employee or agent.

If, in a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question. It also loses it for the following years as long as it does not meet all the conditions of a JEI: titleContent.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social security contributions.

To benefit from the exemption, the company does not need to make a prior declaration to the Urssaf. The exemption shall apply every month from the beginning of the financial year from the moment the company considers that it satisfies the conditions required to benefit from this exemption.

The company applies the exemption itself by filling in the contribution summary slip.