Defence Restructuring Zones (ZRD) — Corporate Income Tax Exemption for New Businesses
Amount or advantage indicated: an exemption from income tax or corporation tax on profits from activities located in the ZRD and made up to the end of the fifty-ninth month after the start of activity in the zone, i.e. a 5-year exemption period. The exemption then tapers: one third of profits are taxed in the 6th year and two thirds in the 7th year. The scheme is granted under the European “de minimis” regime, which limits total public aid per company to €200,000 over 3 consecutive financial years.
Supports, through an exemption from tax on profits, the creation of establishments in areas affected by defence restructuring (defence restructuring zones, ZRD) where the ongoing restructuring risks seriously harming employment. The exemption concerns any company created before 31 December 2020. The public indicated in the catalogue is: business creation in a defence restructuring zone (ZRD) during a 3-year period starting either on 1 September 2009 or on 1 January of the year before the one in which the area or municipality is recognised as a ZRD. The new activity must be industrial, craft or commercial; or liberal if carried out by a company subject to corporation tax; or the rental of equipped business premises (for example a factory with its manufacturing machinery, a restaurant with kitchen and customer equipment, a warehouse with storage and shipping equipment).
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
Business creation in a defence restructuring zone (ZRD) during a 3-year period starting either on 1 September 2009 or on 1 January of the year before the one in which the area or municipality is recognised as a ZRD. The new activity must be industrial, craft or commercial; or liberal if carried out by a company subject to corporation tax; or the rental of equipped business premises (for example a factory with its manufacturing machinery, a restaurant with kitchen and customer equipment, a warehouse with storage and shipping equipment).
Eligibility conditions
The company must employ at least one full-time employee working in premises located in the ZRD (no business travel outside the ZRD) and make at least 25% of its turnover excluding VAT with customers located in the ZRD.
What the scheme covers
Business creation in a ZRD.
Amount and funding terms
An exemption from income tax or corporation tax on profits from activities located in the ZRD and made up to the end of the fifty-ninth month after the start of activity in the zone, i.e. a 5-year exemption period. The exemption then tapers: one third of profits are taxed in the 6th year and two thirds in the 7th year. The scheme is granted under the European “de minimis” regime, which limits total public aid per company to €200,000 over 3 consecutive financial years.
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
- Geographic scope
- All of France
Frequently asked questions
What is this aid for?
Supports, through an exemption from tax on profits, the creation of establishments in areas affected by defence restructuring (defence restructuring zones, ZRD) where the ongoing restructuring risks seriously harming employment. The exemption concerns any company created before 31 December 2020.
Who can benefit?
Business creation in a defence restructuring zone (ZRD) during a 3-year period starting either on 1 September 2009 or on 1 January of the year before the one in which the area or municipality is recognised as a ZRD. The new activity must be industrial, craft or commercial; or liberal if carried out by a company subject to corporation tax; or the rental of equipped business premises (for example a factory with its manufacturing machinery, a restaurant with kitchen and customer equipment, a warehouse with storage and shipping equipment).
How much can be obtained?
An exemption from income tax or corporation tax on profits from activities located in the ZRD and made up to the end of the fifty-ninth month after the start of activity in the zone, i.e. a 5-year exemption period. The exemption then tapers: one third of profits are taxed in the 6th year and two thirds in the 7th year. The scheme is granted under the European “de minimis” regime, which limits total public aid per company to €200,000 over 3 consecutive financial years.
Which costs are covered?
Business creation in a ZRD.
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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