Employer Social Contribution Exemption for Overseas Territory Companies
Purpose: Develops economic activity and employment in the overseas territories by offering certain employers (those with fewer than 11 employees and those in certain sectors whatever their headcount) an exemption from employer social security contributions (with a standard regime and an enhanced regime). Beneficiaries listed: under the competitiveness scale, companies with fewer than 11 employees in press, audiovisual production, air and sea transport, building and public works; under the enhanced competitiveness scale, companies with fewer than 250 employees and turnover below €50 million in sectors such as industry, restaurants, environment, agri-food, renewable energy, ICT, fishing, aquaculture, agriculture, tourism, hotels and R&D. Point to watch: the employer must be up to date with its declaration and payment obligations to the CGSS (general social security fund) and must not have been convicted of tax fraud or undeclared work.
Exemption from employer social contributions for companies in the French overseas territories is a tax or social mechanism, not a grant paid directly. Develops economic activity and employment in the overseas territories by offering certain employers (those with fewer than 11 employees and those in certain sectors whatever their headcount) an exemption from employer social security contributions (with a standard regime and an enhanced regime). The conditions depend on the applicable text, the situation of the employer or establishment and, in some cases, local decisions.
Funded by Ministère des Outre-Mer, URSSAF
Run a personalised scan to identify the public grants and funding your company may be able to access.
Who can apply
The catalogue mentions: COMPETITIVENESS SCALE: companies with fewer than 11 employees in press; audiovisual production; air and sea transport; building; public works. ENHANCED COMPETITIVENESS SCALE: companies with fewer than 250 employees and annual turnover below €50 million that: are in industry, restaurants, environment, agri-food, renewable energy, information and communication technologies and call centres, fishing, marine farming, aquaculture, agriculture, tourism (including related leisure activities), boating, hotels, research and development; or, in French Guiana, are in sectors eligible for tax relief on productive investment or carry out accounting, business consultancy, engineering or technical studies; or benefit from the inward processing regime under Article 256 of Regulation (EU) 952/2013 of 9 October 2013 laying down the Union Customs Code. Scale for innovative businesses in information technology: employers with fewer than 250 employees and annual revenue below €50 million whose employees mainly work on innovative ICT projects. The organisation’s structure, activity, location and size must be checked against the funder’s current criteria or the applicable text.
Eligibility conditions
Conditions listed: To benefit from the exemption, two conditions must be met: the employer must be up to date with its declaration or payment obligations to the CGSS (the payment condition is met if it has agreed and is complying with a repayment plan for contributions still due and is paying current contributions on time); and neither the company nor its head may have received a final criminal conviction for tax fraud, undeclared work, illegal labour subcontracting or illegal lending of labour. The exemption also depends on a headcount condition or on carrying out an activity in a specified sector. The information above comes from the catalogue. It does not replace the rules in force, the applicable texts or written confirmation from the competent body.
What the scheme covers
Operations or costs mentioned: Social contributions for employees of private-law companies, employers and bodies due from 1 January 2019. Excluded: contributions for work accidents and occupational diseases (AT/MP). Check the exclusions, the cost eligibility date, combination rules and any requirement to apply before the project starts.
Amount and funding terms
Amount indicated in the catalogue: SCALE FOR GUADELOUPE, FRENCH GUIANA, MARTINIQUE AND RÉUNION — competitiveness scale: full exemption when annual earnings are below 1.3 times the SMIC; above this threshold, the exemption decreases progressively and falls to zero at 2.2 times the SMIC. Enhanced competitiveness scale: full exemption when annual earnings are at or below 2.7 times the SMIC. Scale for innovative ICT companies: full exemption when annual earnings are below 1.7 times the SMIC; between 1.7 and 2.5 times the SMIC, the portion of pay equal to 1.7 times the SMIC is fully exempt; above 2.5 times the SMIC, the exemption decreases progressively until it falls to zero at 2.2 times the SMIC. Enhanced competitiveness scale: full exemption where annual earnings are at or below 2.7 times the SMIC. Scale for innovative ICT businesses: full exemption where annual earnings are below 1.7 times the SMIC; where earnings are at or above 1.7 and below 2.5 times the SMIC, the part of pay equal to 1.7 times the SMIC is fully exempt; above 2.5 times the SMIC, the exemption decreases progressively and falls to zero at 3.5 times the SMIC. Scale for Saint-Barthélemy and Saint-Martin. Competitiveness scale: full exemption where annual earnings are below 1.4 times the SMIC; from this threshold the exemption decreases progressively and falls to zero at 3 times the SMIC. Enhanced competitiveness scale: full exemption where annual earnings are below 1.4 times the SMIC; from this threshold the exemption decreases progressively and falls to zero at 3 times the SMIC. Scale for innovative ICT businesses: full exemption where annual earnings are below 1.7 times the SMIC; where earnings are at or above 1.7 and below 2.5 times the SMIC, the part of pay equal to 1.7 times the SMIC is fully exempt; above 2.5 times the SMIC, the exemption decreases progressively and falls to zero at 4.5 times the SMIC. This amount is not presented as guaranteed: it must be confirmed in the current version of the rules or official page. For tax and social exemptions, the benefit depends on the basis, the legal criteria and the beneficiary’s actual situation.
How to apply
1. Identify the body reviewing the application and obtain the current version of the rules. 2. Check the eligibility of the organisation, project, costs and timetable. 3. Prepare the required supporting documents (identity of the organisation, financial data, quotes or invoices depending on the scheme, project description). 4. Apply following the official procedure and keep the acknowledgement of receipt. 5. Do not commit costs before the application or approval where the rules require it. These steps are a general checklist; the exact procedure for this aid still needs to be confirmed.
Timeline
This is a tax or social mechanism with no application window recorded in the catalogue. No real-time availability is stated here: ask the competent body whether the scheme is currently being applied and check the applicable deadlines.
Key facts
- Funder
- Ministère des Outre-Mer, URSSAF
- Type of funding
- Tax exemption
- Status
- Ongoing
- Geographic scope
- All of France
Frequently asked questions
What is the “Exemption from employer social contributions for companies in the French overseas territories” scheme for?
The catalogue describes the following objective: develops economic activity and employment in the overseas territories by offering certain employers (those with fewer than 11 employees and those in certain sectors whatever their headcount) an exemption from employer social security contributions (with a standard regime and an enhanced regime). The exact scope must be checked in the official documentation in force.
Who can benefit?
The beneficiaries listed are: under the competitiveness scale, companies with fewer than 11 employees in press, audiovisual production, air and sea transport, building and public works; under the enhanced competitiveness scale, companies with fewer than 250 employees and turnover below €50 million in sectors such as industry, restaurants, environment, agri-food, renewable energy, ICT, fishing, aquaculture, agriculture, tourism, hotels and R&D. The organisation must check each criterion and exclusion with the competent body.
What amount or advantage is provided?
The catalogue indicates: in Guadeloupe, French Guiana, Martinique and Réunion: under the competitiveness scale, full exemption below 1.3 times the SMIC, decreasing to zero at 2.2 times the SMIC; under the enhanced scale, full exemption up to 2.7 times the SMIC; for innovative ICT companies, full exemption below 1.7 times the SMIC, then partial exemption decreasing above 2.5 times the SMIC. For tax or social schemes, the benefit depends on the applicable conditions and basis.
What should be checked before applying?
Check first: to benefit from the exemption, two conditions must be met: the employer must be up to date with its declaration or payment obligations to the CGSS (the payment condition is met if it has agreed and is complying with a repayment plan for contributions still due and is paying current contributions on time); and neither the company nor its head may have received a final criminal conviction for tax fraud, undeclared work, illegal labour subcontracting or illegal lending of labour. The exemption also depends on a headcount condition or on carrying out an activity in a specified sector. Also confirm that the scheme applies, the eligible costs, combination rules, dates and whether you must apply before any commitment.
Official source
No official URL is available in our data for this grant.
Other grants of type “tax exemption”
ACRE: who can benefit from the exemption?
Ministère du Travail et des Solidarités, URSSAF
Innovation tax credit (ITC): rates, expenses and declaration
Ministère de l'Enseignement Supérieur, de la Recherche et de l'Espace, Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
Up to €400,000
Craft trades tax credit (crédit d’impôt métiers d’art): check eligibility before filing
Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
Up to €30,000
Related needs and funding
Competitive calls for projects
Ecological transition and CSR
Capital and investment funds
Support and acceleration
Diagnostics and audits
Takeover and transfer
Discover the funding that fits your company
Check your eligibility for public grants
This scheme is only one of the grants your company may be able to access. Run a personalised scan to identify the funding opportunities that match your activity, location and project.
See the opportunities identified by the scan, then access your personalised report.