Regional Aid Zones (AFR) — Corporate Income Tax Exemption for New Businesses
Amount or advantage indicated: an exemption from income tax or corporation tax on profits, from the year the company is created: years 1 and 2: 100%; year 3: 75%; year 4: 50%; year 5: 25%. For SMEs within the current EU definition, the exemption applies within the conditions and limits of the European regulation on State aid to SMEs; for large companies, within those of the European regulation on national regional investment aid.
Supports the creation of new companies in regional aid zones (ZAFR) through an exemption from tax on profits. The scheme applies to companies created until 31 December 2027. The public indicated in the catalogue is: SMEs within the current EU definition and companies subject, by right or by option, to a real tax regime on their profits and carrying out an industrial, commercial or craft activity. Excluded: companies created as part of a concentration, restructuring or extension of pre-existing activities, or that take over such activities. Excluded sectors: banking; financial activities; insurance; property management or rental; sea fishing activities created from 1 January 1997.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
SMEs within the current EU definition and companies subject, by right or by option, to a real tax regime on their profits and carrying out an industrial, commercial or craft activity. Excluded: companies created as part of a concentration, restructuring or extension of pre-existing activities, or that take over such activities. Excluded sectors: banking; financial activities; insurance; property management or rental; sea fishing activities created from 1 January 1997.
Eligibility conditions
The registered office and all the activity and operating resources must be located in an AFR zone. The capital of newly created companies must not be held, directly or indirectly, for more than 50% by other companies; it is considered held indirectly by other companies when at least one of the following applies: a shareholder legally or in fact holds a management or supervisory position in another company whose activity is similar or complementary to that of the new company; or a shareholder and their tax household hold at least 25% of the shares in another company whose activity is similar or complementary. The exclusion of extensions of pre-existing activities is characterised by a contract, whatever its name, organising a partnership in which the new company receives assistance from the partner — notably on using a sign, trade name, brand or know-how, supply conditions, or administrative, legal, commercial or technical management — such that it is placed in a position of dependency. Where a company carries out a non-sedentary activity partly outside these zones, the location condition is deemed met if it makes no more than 15% of its turnover outside them; above 15%, the profits are taxed under ordinary rules in proportion to the turnover made outside the zones. This turnover condition is assessed financial year by financial year.
What the scheme covers
Business creation in a regional aid zone (ZAFR).
Amount and funding terms
An exemption from income tax or corporation tax on profits, from the year the company is created: years 1 and 2: 100%; year 3: 75%; year 4: 50%; year 5: 25%. For SMEs within the current EU definition, the exemption applies within the conditions and limits of the European regulation on State aid to SMEs; for large companies, within those of the European regulation on national regional investment aid.
How to apply
Consult the scheme’s official source and check the current application arrangements before applying.
Timeline
No end date is recorded in the catalogue. Check the current status, application period and any deadlines on the official page before applying.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
- Type of funding
- Tax exemption
- Status
- Ongoing
- Funding rate
- 100%
- Automatically extracted — check the official source
- Geographic scope
- All of France
Frequently asked questions
What is this aid for?
Supports the creation of new companies in regional aid zones (ZAFR) through an exemption from tax on profits. The scheme applies to companies created until 31 December 2027.
Who can benefit?
SMEs within the current EU definition and companies subject, by right or by option, to a real tax regime on their profits and carrying out an industrial, commercial or craft activity. Excluded: companies created as part of a concentration, restructuring or extension of pre-existing activities, or that take over such activities. Excluded sectors: banking; financial activities; insurance; property management or rental; sea fishing activities created from 1 January 1997.
How much can be obtained?
An exemption from income tax or corporation tax on profits, from the year the company is created: years 1 and 2: 100%; year 3: 75%; year 4: 50%; year 5: 25%. For SMEs within the current EU definition, the exemption applies within the conditions and limits of the European regulation on State aid to SMEs; for large companies, within those of the European regulation on national regional investment aid.
Which costs are covered?
Business creation in a regional aid zone (ZAFR).
How do I apply?
Consult the scheme’s official source and check the current application arrangements before applying.
Official source
No official URL is available in our data for this grant.
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