Have you created an establishment or made a land investment since January 1, 2021?
You are potentially eligible for a CET exemption! We tell you more.
Which companies are affected by the exemption?
The finance law for 2021 establishes several direct tax relief measures.
Some of these reductions are automatically applicable, while others are optional and require deliberation by local authorities or their groupings.
The article 120 of the finance law for 2021 introduces an optional exemption from CFE for newly created establishments or the realization of land investments generating an increase in the tax base as of January 1, 2021.
This exemption will be transposable to the contribution on the added value of companies (CVAE) due in respect of the establishment concerned.
And concretely what does this change?
The creation and extension of new facilities from 2021 onwards may therefore be subject to the approval of the beneficiary local authorities, be exempt for three years from CFE (and CVAE).
- the year following that of the creation of the establishment (the optional exemption would apply after the abatement of half of the taxable rental value)
- or the second year following that during which the extension of the establishment took place.
And concretely what does this change?
The creation and extension of new facilities from 2021 onwards may therefore be subject to the approval of the beneficiary local authorities, be exempt for three years from CFE and CVAE from:
- the year following that of the creation of the establishment (the optional exemption would apply after the abatement of half of the taxable rental value)
- or the second year following that during which the extension of the establishment took place.
the year following that of the creation of the establishment (the optional exemption would apply after the abatement of half of the taxable rental value)
or the second year following that during which the extension of the establishment took place.
How to benefit from it?
This exemption is subject to two conditions.
- Deliberation by the municipalities or EPCI before October 1 to be applicable the following year.
- The request from the taxpayer (1447C in case of creation or 1447 M in case of extension)
Our tax consultants are at your disposal to assist you in this process.
