© Jacob Wackerhausen - Amanda Rohde - Zlatko Kostic SPECIAL EDITION
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THE ADVANTAGES :HOW-TO-GUIDE - TAX FREE ZONE I It’s themoment O N RENS: THE GOODREASONS ARDENNES FRANCE € - THE DIFFERENT EXEMPTIONS Ardenne économique Special edition - 2008 2 ©Michel Tuffery - Charleville-Mézières created inthesame region. Ardennes’ municipalities concernedby thisorforall jobs butions forallinvestments localized inoneofthe362 It allows thereduction oftaxes andsocialsecuritycontri- voted unanimouslyattheFrench National Assembly. rective financialtaxdebatefortheyear 2006,andwhichwas was created by anamendmentthatItabledduringacor- » Tax Free Zone The plantoboosttheemployment area called« President for the Law Commission at the NationalAssembly LawPresident Commissionatthe the for Ardennes the Deputy for Jean-Luc Warsmann to invest in There has ecm oalpoetbaes!!!! Welcome toallproject bearers In the362 Ardennes’ this hasalready departments beendone. taxes andsocial securitycontributions. In allcountries,companiesare demanding areduction in encouraging investment projects tobesetupintheArdennes. companies, orby beingmore competitive thanothers, fabric eitherby simplifyingthedevelopment ofexisting :boostthedepartment’s economic The objective iseasy a better ©Michel Tuffery - Sedan
never been 3 moment the Ardennes Géraud Spire President of the Chamber of Commerce of the Ardennes With this plan to boost the employment market area, French The CCI of the Ardennes is doing all that is possible to and European company directors in the Ardennes, have an guarantee the success of these measures and provide the advantage available which we hope, they will benefit from. necessary technical support to project bearers. These new measures, whose advantages will remain open for several years, are not only intended for people who set There has never been a better moment to invest in the up companies but also for those who have already invest- Ardennes! ed and who would like to continue their development. Therefore, take advantage of these grants. Ardenne économique Special edition - 2008 4 mi :[email protected] email :0033324566268 Telephone Rosoy,Hubert : contact the CCIofthe Ardennes aids,please about financial For more information the goodreasons : Ardennes (food processing industry, tourism). processing(food industry, - aswellsectionalaids: development, and sustainable environment protection ofthe - the exchanges- international developing transfer, andtechnology - innovation andinvestment, - development andworkingconditions, - safety - hiringandtraining, over acompany, ortaking - founding : aidsfor financial conditions. There are particular from, undercertain benefit range ofaidswhich companies can awide and the municipalitiesoffer Council Council, the Departmental Europe, the State, the Regional framework,In alegal andstatutory Aids of Financial A widerange bottom of the balancesheet, ofthe bottom the to top from the financing for The CCI and CMAfiles2007 We suggest that you discover it in the following pages. following youdiscoverWe itinthe that suggest Ardennes department. companies andbusinessmenare allthat inthe to lookingfor strength gives additional »planbyitsexceptional character Tax Free Zone The « attractiveness. region’s inthe European community-participates the -even state Moreover, andthe publicauthorities placebythe planputinto the 20years. more surplusfor than abalanceoftrade taining have companies main- to that dynamismofallthe contributed the to thanks French departments exporting first asoneofthe It isalsolisted requirements. and meetcustomers’ andquality,nological innovation widenproduction inorder to offers direction tech- towards adifferent take same timeithasbeenableto butatthe sector workingpopulationinthis 40%ofthe and employs inFrance industrialized most remains oneofthe Thedepartment - tradition. industrial itself,byastrong The Ardennes distinguishes East.). the to West andGermany the to Paris North, Beneluxinthe the (going towards European)service -TGV sinceJune2007, East network andmotorway air, (highspeedtrain railways isserved bywaterways, The department in fullexpansionandadirect market ofsome250millioninhabitants. ofaEuropean Union heart continent. Therefore, inthe itissituated European East entire situation,openingdirectly North the graphical onto hasaunique geo- Ardennes Department the ofFrance, north In the by sector ofactivity Job distribution of the Ardennes population ore: Source ore :INSEE Sources Distribution 15,5 Industry % 16,2 Construction % from 24years 0to 33,6 34,4 Trade % % 33,9 Transport % 30,4 % from 40 to 59 years 60 years oldand+ 60years from 59years 40to 14,1
Food industry 28,4 % 21,2 Production % % 34,2
Building 27,3 % % 30,5 Transports/services % 17,8 of theArdennes, 2007 The Chamberof Trade : Sources industries of Smallcraft Distribution % 23,6 % LONDON
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ANTWERPEN The Ardennes (08) : BRUSSEL KÖLN LIÉGE LILLE FRANKFURT CHARLEROI A3
A26 Charleville A4 LLUXEMBOURGUXEMBOURG a privileged geographical Mézières 4 Sedan A3 Sedan
A31 METZ PARIS A4 A6 REIMS A4 A5 and strategic situation A4
A26
TROYES NANCY STRASBOURG The Ardennes in Europe Industrial parks Brussel National
BELGIUM High Speed train TGV Brussel South Givet Charleroi
River port Meuse
E411
Airport E25 Revin LUXEMBOURG Bogny-sur-Meuse 5 A34 Boating A34 Charleville Luxembourg Mézières * From Charleville Mézières Tournes-Cliron E411 Signy-L'Abbaye Sedan
Poix-Terron Mouzon E46
dennes A34 Ar s l de Cana Rethel Aisne TGV East : 45 min* Vouziers A26 Reims Metz
Roissy Charles de Gaulle A4 A4
A4 Nancy
Châlons-en-Champagne Paris A26 TGV East : 1h30* An attractive operational land offer 5 industrial parks with a logistical and indus- trial vocation situated near to the A34 The advantages motorway offering improved land : Rethel : 70 hectares 15 minutes from Reims (extension to 380 hectares). Bazeilles : 100 hectares (extension to 280 hectares). Ardennes Emeraude in Tournes-Cliron : 80 hectares alongside the west branch of the A34. Ardennes Azur à Donchery : 80 ha alongside the east branch of the A34 Givet : 52 hectares in the north of the department. Village PME-PMI in Douzy : 3 000 square metres situated to the east of Sedan. Poix-Terron : 8 hectares to the south of Charleville Mézières. Industry: tradition, The CCI of the Ardennes innovation, diversification represents a cooperative A department with a strong industrial tra- fertile ground where dition, the Ardennes from a very early stage all the forces involved was recognized as the pioneer of techno- logical innovation and was able to bring have for their objectives, its numerous qualities to the forefront www.cci.sfia.fr : the internet site of progression and success. which makes this department a privileged the Ardennes’ industrial Know-How 6 On the other side of implantation for national and internatio- This catalogue, an interactive window of nal investments. the Ardennes Industrial know- 2008 this page, are some of Numerous high security parts, either for how, lists not less than the successful realizations the launch rocket Ariane, the high speed 343 companies in all and other projects train (TGV), Airbus, or automobile indus- sectors of industrial try are made in the department. Special edition - activity as varied as : that are underway. With a strong industrial know-how pas- timber, household If you are company directors, sed on from generation to generation, the equipment, food- project bearers, craftsmen, Ardennes Department is a leader as far as processing, auto- industrial employment is concerned. mobile, plastics or shopkeepers, researchers Ecobiz : a collaborative Platform connection. Ardenne économique économique Ardenne or investors… to generate business You are welcome This collaborative platform put into place Ascott’s (Ardennes Territorial Skills) : to our department. by the CCI of the Ardennes allows all its national members to access rapidly to the the integrator of the Ardennes department’s economic news and to confi- Industrial know-how dential information concerning their sec- Created on the 12th October 2006 on the tors of activity. initiative of a group of company directors Ecobiz also generates a volume of business from the Ardennes, Ascott’s leads to the between them. manufacturing of complete sets or subsets, encouraging collaborative engineering and allowing companies to land markets which before were inaccessible. 1 600 collaborators 34 companies. Poles of competitiveness for a global influence Genuine levers dedicated to support com- « Ardenne Accueille » : panies and research establishments, the an association which helps with poles of competitiveness encourage the the newcomers’ installation cooperation between international indus- trialists and our company directors and This association which was created in 1967 therefore perpetuate the economic fabric by some young executives has for vocation of the Ardennes. the welcoming and accompanying of new executives and their families that are set- Castle of Sedan - The Pole « P2MI » (Deals with the ting up home in the department. Tourism and Culture : a way of life implementing of innovating materials) 3 306 small craft industries The vocation of this pole of competitive- The Ardennes department has consider- ness leads to an opening into the research This sector participates actively in the crea- ably improved its accessibility over the past and development of all materials : metal, tion of the Ardennes richness. Jobs in the years and has adapted its supply to an ever plastic, wood or new materials. food trade, metalworking, textiles, wood, increasing waterway tourism with 210 km paper, building, joinery, excavation, trans- of inland navigation. port… These craftsmen occupy all sectors of the economy. The international Puppet theatre festival and Arthur Rimbaud have given to the Ardennes their letters patent of nobility. 6 sports and recreation parks, 3 golf cours- © Don Bayley es, an imposing architectural patrimony, and abundant nature make our depart- ment a place where it is good to live. - The pôle IAR (agro-resources industry) The pole IAR which joins together The Picardie and the Champagne-Ardenne region mobilizes researchers, universities and com- 7 panies in order to develop agro-resources. This pole which has a global vocation helps companies to materialize their research and development projects and The services : to accompany them up to the industrial Evolution and diversification More than 200 kms of waterways for tourism. production stage. A boat hire base, and 6 river ports. With a high rate of employment, the The CRITT-MDTS : Ardennes’ service companies continue the Ardennes industrial innovation force development and diversification of their activities. The CRITT is a research and expertise The new perspectives concerning water- laboratory specialized in the development way transport (logistic plate form in Givet), of new products and surface processing, rail transport (TGV) but also the motor- integrating basic metallic, ceramic and way contribute to stimulating this sector. polymer materials. Its teams, made up of doctors, engineers, and technicians, propose complete services to companies ranging from calculated studies to the implementation of innova- tion programs.
The department has been served by the TGV East European since June 2007.
The international puppet theatre festival attracts more than 145 000 spectators over a ten day period How-to guide to investing in
The tax exemption and social security contributions exemption plan that companies situated on the territory of a municipality in the Boost Employment Area (BEA) of the Meuse Valley can apply for, came into force on January 1st, 2007 and is valid until December 31st 2011.
The areas concerned are mainly the district of Chaumont-Porcien, the subdivsions of Charleville –Mézières, Sedan and Vouziers ( with the exception of the district of Machault, highlighted on the map). Givet In this area specific social and fiscal benefits are provided in order to assist economic development.
The area concerned Revin Bogny-sur-Meuse 8 Charleville-Mézières 2008 Tournes-Cliron Signy-L'Abbaye Sedan
Special edition - Donchery Bazeilles-Douzy
Poix-Terron Mouzon Ardenne économique économique Ardenne
Rethel
Vouziers
The list of municipalities concerned can be consulted at the Chamber of Commerce and Industry of the Ardennes at : -1- The area concerned www.ardennes.cci.fr a tax-free employement zone -2- To whom does it apply ? This plan was introduced for the benefit of companies setting up a business on the territorial zone of the BEA (which implies premises, machines or materials needed for the company to operate, verifiable business operations in the zone), For existing companies or for existing companies expanding into the territorial zone of a BEA. in the Ardennes Existing companies in the Ardennes The plan concerns every tax payer working in the industrial, commercial can benefit from some of the or small crafts sector as well as companies paying corporation tax measures of the BEA plan and involved in the non - commercial sector (self-employed activities, (exemption from business tax, responsibilities and functions where the person concerned is not property tax and social officially a tradesman, etc). security contributions) The categories that may apply for this plan are : within the framework of a business • Individual entrepreneurs that pay income tax in the category of industrial development. or commercial profits ; In the case of new companies, • Companies or organisations under the partnership system ; (new business set-ups or • Companies or organisations subject to corporation tax by default new operations) these will also or by option. be able to benefit from the other exemptions stated in the plan : 9 corporation tax and fixed annual These measures do not apply to the leasing sector, tax. nor to the rental of buildings for housing or farming . Similarly, association activities cannot benefit from this system.. € 200,000 -3- • The common law system - called « de minimis » - • Company size is determined stipulates that public subsidies granted to eligible companies according to EU regulations : under the tax exemption plan of the Boost Employment Area - small companies re companies that employ under 50 of the Meuse Valley are limited to € 200,000 over a 3-year employees and that have a turnover or total balance below period. € 10M. At least 75% of their capital must be permanently - • No minimum size of company is required in order owned by one or more people, or companies that satisfy the to benefit from these measures. same conditions. ; • However, there is a dispensatory system - medium-sized companies are those that employ under 250 employees and that have a turnover below € 50M or for projects situated in a Regional Assistance Zone on the a total balance below € 43M. BEA. In this case, the upper limit of subsidies is determined At least 75% of their capital must be permanently - owned by according to the size of the company and relevant costs of the one or more people, or companies that satisfy the same project. conditions. Relevant costs are investments ( excluding goods financed through leasing) or salaries for jobs created over a 2 – year • However, if a company wants to opt for the full BEA period. plan, it must notify its Tax Authority and Social Security Consequently, the subsidy limit is equal to X% of the rele- Office within a 6-month period following the start of vant costs.(X being determined according to company size, business in a BEA. 35% for small companies, 25% for medium-sized companies and 15% for big companies.) 10 Ardenne économique Special edition - 2008 -4- All new companies or company developments set up from January 1 All newcompanies orcompany setupfrom developments January EXEMPTION • BUSINESSRATE activity occursintheBEA. This measure appliesbothto newcompanies andto newactivitiesofexistingcompanies, ifallthebusiness The FAT CTexemption. ofthe asthat exemption same duration the appliesfor BEA. inthe activity occurs areCompanies exempt that Tax from Corporate are alsoexempt from AnnualTax, Fixed business allthe provided that • FIXEDANNUAL TAX EXEMPTION ofthisexemption onlyappliesfortheremaining duration oftheplan. the benefit Where thenewbusinessfollows This measure appliesbothto newcompanies andto newactivitiesofexistingcompanies. BEAare exempt. inthe businessessituated inthe generated profits Only the conditions. measure undercertain this eligible for be BEA,canstill inthe outonlypartially cases,suchasso-calledmobilebusinessesorcarried BEA. Specific businessactivityinthe ofthe exemption start the following ofCTover from aperiodof7years atotal benefit opt into Tax are areCompanies Corporation involved orbyoption,andthat subjectto that inaeligiblesector, bydefault can • CORPORATION TAX EXEMPTION This measure appliesbothto newcompanies andto newactivitiesofexistingcompanies. conditions. under certain measure this beeligiblefor BEA,canstill inthe outonlypartially so-called mobilebusinessesorcarried cases,suchas exemption ofIncomeTax businessinaBEA.Specific launchofthe the following over aperiodof7years from atotal benefit canoptto category, andCommercial Profits” “Industrial Individual entrepreneurs comeunderthe that • INCOME TAX EXEMPTION each businessconcerned. To from thebusinessrate exemption, have taxpayers to benefit applyfor itto therelevant Tax Authority for can cancelitforitsownpart. The exemption from businessrates isalegal right,butalocalcouncilordistrictoperating itsowntaxsystem This measure appliesbothto newcompanies andto newactivitiesofexistingcompanies. comparedlevel previous year, the to Insee. asobserved bythe consumer priceindexvariation multipliedbythe businessrate expansionasbeinganetincrease inthe this Tax the measure bevalid, to For this define Authorities of5years. a duration for from businessrates How-to guidetoinvestingin The different exemptions tax a company takeover, abusinesstransfer, abusinessmerger orarestructuration, st 2007 to December312007 to st 2011 willbeexempt a tax-free employement zone
• PROPERTY TAX EXEMPTION Companies that benefit from business rate exemption may also opt to benefit from property tax exemption on buildings situated within the perimeter of the BEA on January 1st of the tax year, if those buildings belong to a company operating in one of the eligible business sectors between January 1st 2007 and December 31st 2011. This exemption is valid for 5 years from January 1st of the year following the end of construction, or 5 years from January 1st of the year which follows that of the building’s new purpose/activity. This measure applies both to new companies and to new activities of existing companies. The exemption from property tax is a legal right, but a local council or district council operating its own tax system can cancel it for its own part.*. • SOCIAL SECURITY CONTRIBUTIONS EXEMPTION This concerns an exemption from employer contributions due, concerning social security insurance cover, family benefits, as well as transport payments and contributions to the National Housing Assistance Fund, for salaries paid within the limit of numbers of hours paid at the Minimum Wage Rate increased by 40%. This exemption applies to new recruitments and new business activities in the BEA, as well as to company developments giving entitlement to business rate exemption, for a duration of 7 years from the date of the business implantation, setup or development. 11 This measure applies both to new companies and to new activities of existing companies. In order to benefit from this exemption within the framework of a business development, this development must be considered in the fiscal sense of the term. Namely, investments have to be carried out before the recruitments for which the social security contributions exemption is being requested. *The list of municipalities where the benefit of this exemption is valid or cancelled is available at the CCI of the Ardennes. Our acknowledgements to Clément Brochon, chartered accountant, of the KPMG Corporate office, for his technical assistance in the preparation of this document.
To sum up : A committed organisation Within the framework of a business start-up : The main aim of the “Zone Franche Ardennes Exemption : Duration organisation, created in October 2007 and coordi- Income Tax and Corporate tax 7 years nated by Sébastien Docq, is to enhance and pro- Fixed Annual Tax 7 years mote the BEA plan present in the Ardennes Business Rates 5 years department amongst the local population and Property Tax 5 years neighbouring regions and abroad. SS Contributions 7 years While not wishing to infringe on any entity, the Within the framework of a business development : « Zone Franche Ardennes » sorganisation offers its Exemption: Duration services in partnership with all local councils that Business Rates 5 years share the same determination and dynamism to Property Tax 5 years promote the assets of the Ardennes department. Social Security Contributions 7 years Where to get help ? The CCI of the Ardennes is « the check-in point » in the Boost Employment Area plan. For further details, please contact :, Hubert Rosoy, Telephone : 00 333 24 56 62 68 - email : [email protected] Chamber of Commerce and Industry of the Ardennes www.ardennes.cci.fr
The Chamber of Commerce and Industry of the Ardennes is the check-in counter of the Boost Employment Area plan. For further details, please contact: Hubert Rosoy, Telephone : 00 333 24 56 62 68 email : [email protected]
Everything you need to know on “How-to-guide to investing in a tax-free employment zone”.
Everything you need to know about the Ardennes economy and the portfolio of subsidies that you may claim.
“Ardenne économique”, spécial investisseurs, numéro spécial du magazine Ardenne Economique édité par la CCI des Ardennes 18 A, avenue Georges Corneau 08000 Charleville-Mézières. Tél : 03 24 56 62 62 - Fax : 03 24 56 62 22. e-mail : [email protected] Directeur de la Publication : Géraud SPIRE. Comité de rédaction : Géraud SPIRE - Jean-Claude CHEF - Jean-Pierre LEGROS Jean-Claude SAVOY - Stella DMYTRYK - Emmanuelle LESIRE. Agence Conseil : Essentiel SDM - Tél : 03 26 04 04 07. Direction Artistique : Michel COLOMBO. Impression : SOPAIC. Tirage : 20 000 exemplaires en 3 langues Dépôt légal : février 2008 - Publication membre de l’U.J.J.E.F. Reproduction interdite sauf accord préalable.