If you are a newly established SME located in an Urban Renewal Area (BUD) in the Hauts-de-France region, you can benefit from a full exemption from the Cotisation Foncière des Entreprises (CFE) for seven years, followed by gradual reductions. This initiative aims to ease the tax burden on businesses while promoting investment in revitalization zones. For specific details, contact Direction Départementale des Finances Publiques.
Objectives
The CFE exemption significantly reduces the tax burden for new businesses, supporting their growth and sustainability. By alleviating costs associated with the CFE, this scheme encourages the establishment of companies in strategic areas, contributing to the economic revitalization of Urban Renewal Areas.
Beneficiaries
This scheme is aimed at SMEs that meet the following criteria:
- Headquarters and activities located in a BUD in Hauts-de-France
- Annual turnover below €50 million or total balance sheet below €43 million
- Employee count below 250
- At least 50% of employees on permanent or fixed-term contracts of at least one year residing in the BUD
Excluded: businesses resulting from takeovers, mergers, restructurings, or expansions of existing activities.
Eligible operations
The exemption applies to the Cotisation Foncière des Entreprises (CFE) on half of the taxable base. Businesses can enjoy a full exemption for seven years, followed by reductions of 75%, 50%, and 25% on the taxable base over the next three years.
Eligibility conditions
Eligibility conditions include:
- Located in an Urban Renewal Area (BUD) within municipalities that are part of contiguous Public Establishments (EPCI) with their own taxation, totaling at least 1 million inhabitants, and meeting specific demographic and economic criteria:
- Population density above the national average
- Median disposable income per consumption unit below the national median
- Unemployment rate above the national average
- 70% of the EPCI’s population residing in municipalities meeting the above criteria
- Capital not more than 50% owned by other companies
- Compliance with employee residency conditions (at least 50% residing in the BUD)
Grant amount
The CFE exemption is total for seven years, followed by progressive reductions. Municipalities may also choose to exempt the second half of the taxable base under the same conditions. For specific amounts, contact Direction Départementale des Finances Publiques.
Can I benefit from the CFE exemption if my business is a takeover?
No, businesses created as part of a takeover, merger, restructuring, or expansion of existing activities are not eligible for this exemption.
How long does the CFE exemption last?
The exemption lasts for seven years from the year following the establishment of the business, followed by reductions of 75%, 50%, and 25% on the taxable base over the next three years.
What are the conditions to benefit from the exemption?
Businesses must be SMEs located in a BUD, meeting defined employee and turnover thresholds, with at least 50% of employees residing in the BUD.
Can municipalities exempt the second half of the taxable base?
Yes, municipalities and EPCIs can choose to exempt the second half of the taxable base under the same conditions as the total exemption.
Where can I get more information about this exemption?
For more details on the conditions and procedures, contact Direction Départementale des Finances Publiques.