G/SCM/N/315/EU/Add.10  
17 July 2017 
(17-3841) Page: 1/21 
Committee on Subsidies and Countervailing Measures  Original:  French  
 
 
  SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994  
AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND  
COUNTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to the subsidy 
programmes  of France . 
 
_______________  
 
 
 G/SCM/N/315/EU/Add.10  
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 FRANCE  
 
TABLE OF CONTENTS  
1  SPECIFIC SCHEMES  ................................ ................................ ................................ ...... 3 
1.1  Framework scheme No. SA.39252 for regional aid for the period 2014 -2020 ........................  3 
2  REGIONAL SCHEMES  ................................ ................................ ................................ .... 4 
2.1  Metropolitan France  ................................ ................................ ................................ ...... 4 
2.1.1   Tax reduction for new enterprises  ................................ ................................ ................  4 
2.1.2   Tax reduction for enterprises located in rural revitalization areas  ................................ ..... 5 
2.1.3   Land-Use Management Premium (PAT)  ................................ ................................ .........  6 
2.2  Corsica  ................................ ................................ ................................ ........................  7 
2.2.1   Tax credit for certain invest ments made and exploited in Corsica  ................................ ..... 7 
2.3  French Overseas Departments (DOMs)  ................................ ................................ ............  8 
2.3.1   VAT deduction for certain exempted produc ts ................................ ................................  8 
2.3.2   Tax aid for investments in French Overseas Departments and Territories  ..........................  9 
2.3.3   Tax reduction for profits from opera tions in Overseas France  ................................ ........  11 
2.3.4   Transport support measure for the French Overseas Departments  ................................ . 12 
2.4  Urban areas in difficul ty ................................ ................................ ..............................  13 
2.4.1   Measures on behalf of urban free zones – entrepreneurship territories (ZFU -TE) ..............  13 
3  R&D SCHEMES  ................................ ................................ ................................ ............  15 
3.1  Tax credit to promote research  ................................ ................................ ....................  15 
3.2  National Research Agency (ANR)  ................................ ................................ ..................  16 
3.3  Support for institutions engaged in research for the sustainable development of air 
transport  ................................ ................................ ................................ .........................  18 
3.4  Research for innovation and the sustainable development of air transport  .........................  19 
4  SECTORAL SCHEMES ................................ ................................ ................................ ... 20 
4.1  Tonnage -based tax scheme  ................................ ................................ .........................  20 
4.2  Ultrafast Bro adband Plan for France  ................................ ................................ ..............  21 
 G/SCM/N/315/EU/Add.10  
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 1  SPECIFIC SCHEMES  
1.1  Framework scheme No. SA.39252 for regional aid for the period 2014 -2020   
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
In 2014 t he European Commission  amended  the rules governing  member State intervention  for 
the period  2014-2020. Under this  revised framework , aid scheme  No. SA.39252 provides  for the 
granting of investment aid  to promote the economic develo pment of regions ( areas eligible for 
regional aid ) where the standard of living is abnormally low or where there is serious 
under -employment in view of  their structural, economic and social situation . The aim of the 
scheme is to close the development gap b etween regions in the European Union (equity and 
cohesion ) with a view to achiev ing inclusive, sustainable growth . 
 
3. Legal basis (reference, date ) 
 
Scheme  No. SA.39252.  
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Grant , loan, repaya ble advance . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
Beneficiaries (who receives the subsidy, the producer, the exporter, other ): SMEs and 
large enterprises . Aid for large enterprises is restricted to initial investments in new economic 
activities . 
Eligible base: tangible and intangible assets . 
 
Maximum aid levels : 
30% for small enterprises;  
20% for medium -sized enterprises;  
10% for large enterprises . 
 
6. Subsidy per unit or, in cases where this is not poss ible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
 Amount for 2015: €96.7 million ; 
 Amount for 2016: data not yet available . 
7. Duration of the subsidy and/or a ny other time -limits attached to it  
 
The scheme applies until 31 December 2020.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Scheme designed to help  close the economic development gap between regions . G/SCM/N/315/EU/Add.10  
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 2  REGIONAL SCHEMES  
2.1  Metropolitan France  
2.1.1   Tax reduction for new enterprises  
Title of the aid scheme  
 
Profits tax exemption for new enterprises set up in areas eligible for regional aid, rural 
revitalization areas and urban redevelopment areas  (G/SCM/N/284/EU/Add.10 ). 
 
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote the creation of new enterprises in areas with geographical, economic or social 
disadvantages . 
 
3. Legal basis (reference, date ) 
 
Article 44 sexies  of the General Taxation Code, deriving from Article 14A of Law No. 88 -1149 of 
23 December 1988, extended by Article 92 -I of Law No. 99 -1172 of 30 December 1999 and then 
by Article 92 of Law No. 2003 -1311 of 30 December 2003, as amended by Ar ticle 87 of Amending 
Finance Law for 2006 No. 2006 -1771 of 30 December 2006, by Article 45 of Amending Finance 
Law for 2007 No.  2007-1824 of 25 December 2007, by Article 62 of Amending Finance Law for 
2009 No.  2009-1674 of 30 December 2009, by Articles 108  and 129 of Finance Law for 2011 
No. 2010-1657 of 29 December 2010, by Article 47 of Amendin g Finance Law for 2014 
No. 2014-1655 of 29 December 2014 and by Article 78 of Amending Finance Law No. 2015-1786 
of 29 December 2015.  
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Exemption from profits tax until the end of the twenty -third month following the month of set -up, 
followed by a reduction for profits earned over the three subsequent 12 -month periods (75%, then 
50%, then 25%) . 
 
Eligibil ity for the benefit is subject to compliance with Commission Regulation (EU) No  1407/2013 
of 18 December 2013 on de minimis  aid. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the su bsidy, the producer, the exporter, other) : New 
enterprises in the legal and economic sense (excluding resumption, merging, restructuring, and 
extension of pre -existing activities), at least 50% of the share capital of which is held directly or 
indirectly b y natural persons, and which are set up in specified areas . 
- Allocation mechanism : By operation of law . 
- Conditions : Genuinely new enterprises set up in eligible areas and the headquarters and all 
activities and operating resources of which are establish ed in the area concerned. However, in the 
case of enterprises exercising a non -sedentary activity, conditions of establishment are considered 
to have been met if turnover generated outside eligible areas does not exceed 15% of total 
turnover (above this th reshold, profits are taxed but on the basis of turnover generated outside 
such areas) . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsi dy per unit in the 
previous year ) 
 
Total amount for 2015: €108 million (€110 million i n 2016).  
Average subsidy per unit: around €4, 800 in 2015.  G/SCM/N/315/EU/Add.10  
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7. Duration of the subsidy and/or any other time -limits attached to it  
 
Five years, the scheme being applicable  to enterprises set up by 31 December 2020 in areas 
eligible for regional aid.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Around 22, 500 beneficiary enterprises in 2015.  
 
2.1.2   Tax reduction for enterprises located in rural  revitalization areas  
Title of the aid scheme  
 
Tax exemption on profits earned by enterprises created or taken over in rural revitalization areas . 
 
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote the creation or takeover of enterprises in areas with geographical, economic or social 
disadvantages . 
 
3. Legal basis (reference, date ) 
 
Article 44 quindecies  of the General Taxation Code derived from Article 129 of Finance Law for 
2011 No. 2010 -1657 of 29 December 2010,  extended by Article  29 of Amending Finance Law for 
2013 No. 2013 -1279 of 29 December 2013 , by Article 47 of Am ending Finance Law for 2014 
No. 2014-1655 of 29 December 2014 and by Article 45 of Am ending Finance Law fo r 2015 
No. 2015-1786 of 29 December 2015, as amended  by Article 15 of Finance Law for 2016 
No. 2015-1785 of 29 December 2015.  
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Tax concession. Exemption from profits tax until the end of the fifty-ninth month following the 
month of set -up or takeover, followed by a reduction for profits e arned over the subsequent 
three  12-month periods (75%, then 50%, then 25%).   
 
Eligibility for tax exemption  and partial tax exemption is subject to compliance  with Commission 
Regulation (EU) No 1407/2013 of 18 December 2013 on de minimis  aid. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Enterprises with less than eleven employees, 50% of the share capital of which is directly or 
indirectly held by natural persons, and which are created or taken over in rural revitalization areas . 
 
- Allocation mechanism : By operation of law . 
 
- Conditions : Enterprises with less than eleven employees, not engaged in excluded activities 
(e.g. banking, finance, insurance, management or property leasing), created or taken over 
(excluding extension of pre -existing activities) in eligible areas, and the headquart ers and all 
activities and operating resources of which are established in the area concerned. However, in the 
case of enterprises exercising a non -sedentary activity, conditions of establishment are considered 
to have been met if turnover generated outsid e eligible areas does not exceed 25% of total 
turnover (above this threshold, profits are taxed but on the basis of turnover generated outside 
such areas ). 
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 6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
Total amount for 2015: €28 million ; 
Total amount for 2016: €33 million . 
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
The scheme applies to enterprises created or taken over up to 31 December 2020.  
 
8. Statistical data permitting an assessment of the t rade effects of the subsidy  
 
6,400 beneficiary enterprises in 2015.  
 
Average subsidy per unit : around €4,375 i n 2015.  
 
2.1.3   Land -Use Management Premium (PAT)  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsi dy (or aid scheme ) 
 
Creation, extension or takeover of production activities in priority areas (areas eligible for regional 
aid). 
 
3. Legal basis (reference, date ) 
 
Since 19 September 2014 (date of entry into force), the current scheme has been governed by  a 
decree : 
 
 Decree No. 2014 -1056 of 16 September 2014 concerning the land -use management 
premium for industry and services.  
An order implementing the aforementioned decree is currently under preparation .  
 
4. Form of the subsidy (i.e. grant, loan, tax conc ession, etc .) 
 
Subsidy . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries : enterprises the sector of activity of which is listed in Annex 2 to Decree 
No. 2014-1056.  
 
- Allocation mechanism : Decision by the Minister responsible for town and country 
planning . 
 
- Conditions :  
 
Land-use management premium (PAT) for industry and services  
 
The three categories of eligible project and the eligibility thresholds in terms of jobs created or 
maintained or inves ted amounts are summarized in the table below . 
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 Type of project  Eligibility thresholds  
Setting up of an establishment   20 net jobs created and investment of €3 million  
Extension, diversification or fundamental 
change of process   20 net jobs, representing a t least 50% of the 
company's workforce, and investment of €3 million; 
or 
 40 net jobs and investment of €3  million; or  
 Investment of €10 million  
Acquisition of assets   Dire employment situation  
 Sustainable and structural recovery of the 
company's competitiv eness  
 Significant number of jobs maintained within the 
company  
 Takeover of 50 jobs and investment of €3 million  
 
6. Total annual amount  
 
2015: €23,400,000 ;  
2016: €13,100, 000.  
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
Gener al scheme valid until 31 December 2020.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
 2015  2016  
Number of assisted jobs 
created or maintained  6,127  2,836  
Productive investments 
assisted  €441,800,000  €348,100,000  
 
2.2  Corsica  
2.2.1   Tax credit for certain investments made and exploited in Corsica  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote investment in Corsica . 
 
3. Legal basis (reference,  date) 
 
Article 244 quater  E, 199 ter D and 220 D of the General Taxation Code, deriving from Article 48 of 
Law No. 2002 -92 of 22 January 2002 on Corsica. Article 244 quater  E was last amended by 
Article  39 of Amending Finance Law for 2011 No. 2011 -71978 of 2 8 December 2011, by Article 32 
of Amending Finance Law for 2012 No. 2012 -1510 of 29 December 2012, by Article 20 of 
Amending Finance Law for 2014 No. 2014 -891 of 8 August 2014, by Article 78 of Amending 
Finance Law for 2014 No. 2014 -1655 of 29 December 201 4, by Article 145 of Law No. 2015-990 of G/SCM/N/315/EU/Add.10  
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 6 August  2015 on growth , activity  and equal economic opportunities and by Article  78 of Amending 
Finance Law for 2015 No. 2015-1786 of 29 December 2015.  
 
4. Form of the subsidy (i.e. grant, loan, tax concession, et c.) 
 
Tax concession. Tax credit equivalent to 20% of pre -tax investment costs . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Small 
and medium -sized industrial, commercial, crafts, liberal -professional and agricultural enterprises 
exploiting investments in Corsica . 
 
The tax credit  is subject to compliance with Article 14 of Commission Regulation (EU) No 651/2014 
of 17 June 2014 declarin g certain categories of aid compatible with the internal market in 
application of Articles 107 and 108 of the Treaty.  
 
- Allocation mechanism : Upon option by the enterprise . 
 
- Conditions : Investments eligible for tax credit are those used in Corsica, oth er than 
replacement investments, and at least 25% of which is financed without State aid. Investments 
made in certain sectors of activity subject to Community constraints are excluded. Eligible 
investments must be used in Corsica for at least five years . 
 
For certain categories of enterprise (new enterprises, failing businesses, young innovative 
enterprises, SMEs covered by Community law, etc.), receivables ( amounts due ) for tax credits 
calculated in respect of investments made as of 1 January 2012 are imme diately repayable.  
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
Total amount of tax credit for 2015 and 2016: €54 million in 2015 and €54 million in 2016.  
 
Number of beneficiaries in 2015: 4, 836 enter prises.  
 
Average subsidy per unit  in 2015: around €11, 166. 
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
This aid scheme appli es to investments made between 1 January 2002 and 31 December 2020 . 
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
2.3  French Overseas Departments ( DOMs ) 
2.3.1   VAT deduction for certain exempted products  
1. Period covered by the n otification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote economic development in French Overseas Departments and investment by local 
enterprises, by enabling new capital goods purchased by these enterprises  to benefit from the 
uncollected recoverable VAT (TVA NPR) special mechanism.   
 
3. Legal basis (reference, date ) 
 
Articles 295 and 295 A of the General Taxation Code (CGI) and Articles 50 undecies and 
50duodecies  of Annex IV to the CGI . G/SCM/N/315/EU/Add.10  
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4. Form of the subs idy (i.e. grant, loan, tax concession, etc .) 
 
Tax concession. Persons eligible under the TVA NPR mechanism are authorized to increase their 
VAT deduction by a VAT amount calculated fictitiously, based on the value of new capital goods 
exempt from VAT on pu rchase or import (in accordance with the provisions of Article 295.1  and 
295.5  of the General Taxation Code ). These goods are listed in Articles 50 undecies  and 
50duodecies  of Annex IV to the CGI . 
 
5. Beneficiaries of the aid and allocation mechanism (calcu lation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Enterprises subject to VAT that purchase new capital goods for use in their economic activities. 
These enterprises must also be established in the  French Overseas Departments  of Guadeloupe, 
Martinique or Réunion and engage in activities there which are eligible for the deduction by 
application of Article 271 of the General Taxation Code .  
 
- Allocation mechanism : Deduction of VAT.  
 
- Conditions : Unc ollected VAT is deducted on the statement of turnover filed for the period 
during which the import or purchase of exempted new capital goods took place .  
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount bu dgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
• Total amount for 2015: €100 million  (fiscal expenditure ); 
• Total amount for 2016: €100 million  (fiscal expenditure ). 
 
7. Duration of the subsidy and/or  any other time -limits attached to it  
 
31 December  2020.   
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not available .  
 
2.3.2   Tax aid for investments in French Overseas Departments and Territories  
1. Period covered by the no tification  
 
2015 and 2016 .  
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To contribute to the economic development of French Overseas Departments and Territories . 
 
3. Legal basis (reference, date)  
 
- Article 199 undecies  A and 199 undecies B of the  General Taxation Code ( CGI); Article 244 quater  
W of the  CGI; and Article 217 undecies  of the  CGI. 
 
4. Form of the subsidy  (grant, loan, tax concession , etc.) 
 
Tax concession. Deduction of the amount of the eligible investment from the profits subject to 
corporation tax, or an income tax reduction for taxpaying natural persons ; or a tax credit  for 
enter prises subject to income tax or corporation tax . 
 G/SCM/N/315/EU/Add.10  
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 5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Natural or 
legal persons domiciled in France that invest in any of the five Overseas Departments ( DOMs , 
including Mayotte since 2013), Saint Barthélemy, Saint Martin, Saint Pierre an d Miquelon, 
French  Polynesia, New Caledonia, the Wallis and Futuna Islands or the French Southern and 
Antarctic Territories; or take out shares in a business which itself makes a productive investment 
in one of these territories; or lease an investment ben efiting from the tax aid and operate it or 
lease it in turn to an enterprise operating in these territories, provided, inter alia , that part of the 
tax concession is passed on  to the  operator . Enterprises and partners in a company subject to the 
tax regime  provided for in Article 8 of the General Taxation Code (partnerships) or members of a 
grouping which make productive investments overseas intended for use in certain sectors of 
activity, or, solely in respect of enterprises subject to corporation tax, whi ch subscribe in cash for 
shares in companies subject to corporation tax that invest overseas in those sectors or for shares 
in regional development companies in the French Overseas Departments . Operators  also benefit 
from a  tax credit  for the acquisition o r leasing of an  eligible investment within the framework of 
their activities . 
 
- Allocation mechanism : If the turnover  of the operating company exceeds  €20 million , the only 
form of fiscal support  for which it is eligible in respect of  its productive investment s is tax credit . 
However , if its turnover is less than  €20 million , it is eligible for the  tax credit  provided for in 
Article 244 quater  W of the  CGI, the tax reduction  provided for in Article  199undecies  B of the  CGI 
or the tax deduction provided for in Article 217 undecies  of the  CGI. If the operating company 
wishes to  benefit from the tax credit , it must exercise th is option , which  constitutes a wai ver of its 
entitlement to the other forms of relief . 
Tax credits, l ike tax reductions and deductions from taxable income, may be subject to prior 
authorization from the Ministry responsible for the budget.  
 
Authorizati on is automatic for investments below the statutory thresholds , with the exception of 
investment s in the following: the transport, recreational boating, agriculture, sea fishing and 
aquaculture sectors, the coal and iron and steel industries, the shipbuilding or synthetic fibres 
sectors and th e automotive industry; investment in relation to the restoration and rehabilitation of 
graded hotels, tourist accommodation and holiday villages or in failing businesses, or investment 
required for the exploitation of a concession for local public services  of an industrial or commercial 
nature; with some exceptions, such investments require authorization as of the first euro .  
 
- Conditions : Fixed assets, which must be tangible, new and redeemable, must be acquired, 
created or leased by an enterprise engage d in agricultural, industrial, commercial or crafts 
activities outside the following sectors: trade; cafés, tobacconists and bars/public houses, as well 
as catering1; business advisory services and consultancy; education, health and social welfare; 
banking , finance and insurance; all real estate activities; the cruise industry, car repair, 
rental/leasing services without operators2; business services3; leisure, sporting and cultural 
activities4; postal services; and investments in installations generating e lectricity from solar 
radiation . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
• Total amount for 2015: €655 million ; 
• Amount for 2016: as yet unknown .  
 
                                                
1 With the exception of restaurants which are run by a person who has been awarded the title of 
maître  restaurateur  and which have been audited for the purposes of the award of that title and, where 
applicable, tourist restaurants which were graded on the date of public ation of Law No. 2009 -888 
of 22 July 2009 on the development and modernization of tourism services.  
2 With the exception of the direct rental of pleasure boats or to natural persons using, for a period not 
exceeding two months, private motor vehicles within the meaning of Article 1010 of the CGI.  
3 With the exception of maintenance, cleaning, packaging on  a toll basis and call centres.  
4 With the exception, on the one hand, of activities which are a direct and key component of hotel or 
tourism activities and which do not involve games of chance or gambling and, on the other hand, of audiovisual 
and cinemat ographic production and broadcasting; and associative activities.  G/SCM/N/315/EU/Add.10  
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 7. Duration of the subsidy and/or any other time -limits attached to it  
 
The current scheme is in force until 31 December 2017 . 
 
8. Statistical data permitting an assessment of the trade effects of th e subsidy  
 
Amounts disbursed for applications approved in 2015:  
- Article 199 undecies  B: €72,382,247 ; 
- Article 217 undecies : €140,783,643.  
 
Amounts disbursed for applications approved in  2016:  
- Article 199 undecies  B: €55,699,136 ; 
- Article 217 undecies : €99,669,000.  
 
2.3.3   Tax reduction for profits from operations in Overseas France  
1. Period covered by the notification  
 
2015 and 2016 .  
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote economic development and employment in the Frenc h Overseas Departments . 
 
3. Legal basis (reference, date ) 
 
Article 44 quaterdecies  of the  General Taxation Code . 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Tax concession . Tax reduction for profits from operations in Overseas France . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Small 
and medium -sized enterprises subject to income tax or corporation tax which have  operations in 
the Free Zones for Activities (ZFA) in Overseas Departments (Guadeloupe, Guyana, Martinique, 
Mayotte or Réunion ). 
 
- Allocation mechanism : Upon option.  
 
- Conditions : Enterprises operating in Guadeloupe, Guyana, Martinique , Mayotte or Réunio n 
qualify for a profits tax reduction if the following conditions are satisfied: they employ fewer than 
250 employees and have an annual turnover of less than €50 million; the operation's principal 
activity is in one of the sectors eligible for the tax red uction provided for in Article 199 undecies  B 
of the General Taxation Code, or is one of the following: accountancy, business advisory services, 
engineering, technical consultancy.  The enterprise must also be subject to an actual tax regime or 
to one of the  regimes defined in Articles 50 -0 and 102 ter. The enterprise must not be in difficulty  
within the meaning of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain 
categories of aid compatible with the internal market in application of Ar ticles 107 and 108 of the 
Treaty; the exclusion applied as of 1 July 2014 . Finally (if the amount of the reduction is €500 or 
more), the enterprise must incur expenditure for vocational training and make a payment to the 
Experimental Youth Development Fund , the minimum spending on these actions being proportional 
to the amount of the tax concession.  
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the aver age subsidy per unit in the 
previous year ) 
 
• Total amount for 2015: €144 million ; 
• Total amount for 2016: data not yet available . 
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 7. Duration of the subsidy and/or any other time -limits attached to it  
 
The scheme is applicable to accounting periods opened by 2019.  
 
8. Statistical data permitting an assessment of the trad e effects of the subsidy  
 
Not available . 
 
2.3.4   Transport support measure for the French Overseas Departments  
1. Period covered by the notification  
 
2015 and 2016 .  
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
The objective of the measure is to foster regional economic development by providing support that 
seeks  to offset :  
 
 the additional costs of transporting goods produced  in the  French Overseas Departments 
(DOMs) and  Saint Martin  within the national boundaries and the additional  costs o f 
transporting primary products from their  place of production to the ir place of processing ; 
 the costs of transporting hazardous waste  that cannot be  treated or disposed of  in the 
territories where it is produced (French Overseas Departments  and Saint Mart in).  
This aid scheme aim s to offset the  incremental costs  arising  from the structural disadvantages 
related to the extremely remote location of the French Overseas Departments . These incremental 
costs correspond to  extra transport costs , in particular tho se generated  by the lack of suitable local 
waste treatment plant s and the need to send waste to  mainland Europe or another  French 
Overseas Departments  for treatment.   
 
3. Legal basis (reference, date ) 
 
Law No.  2009-594 of 27 May 2009 on the economic develo pment of Overseas France, and 
Article  24 in particular.  
 
Decree No.  2010-1687 of 29 December 2010 on freight aid for enterprises in the French Overseas 
Departments  of Saint Pierre and Miquelon, Mayotte, Saint Barthélemy, Saint Martin, and the Wallis 
and Fu tuna Islands .  
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Direct subsidy . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
Beneficiaries : Enterprises in all production sectors except the foll owing: the automotive, 
synthetic fibres, iron and steel, and coal industries and the fisheries sector, as well as the 
agricultural products listed in Annex I to the Treaty on the Functioning of the European  Union . 
Exclusions from the scope of coverage of t he aid scheme include hazardous waste  landed  by 
international commercial vessels and cruise ships and  hazardous waste produced by enter prises 
that cannot be  located anywhere other  than in the  French Overseas Department  in question . 
  
Eligible expenses :  
- In geographical terms: the cost of transport between a  French  Overseas Department and 
the European continent and inter -island transport in the Guadeloupe archipelago 
(importation). Inter -Overseas Department transport is excluded . 
- Categories of expenditur e: pre -tax cost of maritime or air transport, including insurance, 
handling and pre -clearance temporary storage charges , of the following :  
o raw materials (primary or interm ediate products) and equipment imported  for 
introduction into an enterprise's prod uction cycle ;  
o locally produced finished products delivered to the European continent . G/SCM/N/315/EU/Add.10  
- 13 - 
 
  
  Aid for waste transport ation does not take into account the cost of  long-term storage  on 
non-approved platforms.   
- Basis of calculation: the cost of transport, irrespective of  the European port or airport of 
origin or destination, is the cost of equivalent transport between the French Overseas 
Department concerned and continental France . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or  the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
2015: €15 million ; 
2016: data not yet available . 
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
The scheme is in effect until 31 December 2020.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
Not avail able. 
 
2.4  Urban areas in difficulty  
2.4.1   Measures on behalf of urban free zones  – entrepreneurship territories  (ZFU -TE) 
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To promote the creatio n and maintenance of activities in urban free zones – entrepreneurship 
territories (new designation of urban free zones since 30 December 2014 ). 
 
3. Legal basis (reference, date ) 
 
Article 44 octies  of the General Taxation Code, deriving from Articles 2, 5A and 5C of Law 
No. 96-987 of 14 November 1996 on implementation of the Urban Regeneration Pact (creation of 
44 "first -generation" ZFU -TEs on 1 January 1997) and extended by Law No. 2002 -1576 of 
30 December 2002.  
 
Measures extended to 41 new ("second -generat ion") ZFU -TEs provided for by Law No. 2003 -710 
of 1 August 2003 on town planning and urban renewal (enterprises established in ZFU -TEs at 
1 January 2004 or which set up operations in such a zone between that date and the date of 
publication of Law No. 2006 -396 of 31 March 2006 on equal opportunities), i.e. 3 April 2006.  
 
Technical adjustments to the measures under Amending Finance Law for 2003 No. 2003 -1312 of 
30 December 2003 . 
 
The measures created by Article 44 octies  A of the General Taxation Code, derivi ng from the 
aforementioned Law No. 2006 -396 ("third -generation" ZFU -TEs) replace the measures provided for 
by Article 44 octies , which ceased to apply to the creation of activities from the day after the date 
of publication of the Law on equal opportunities , i.e. 3 April 2006 . The exemption codified under 
Article 44 octies  A of the CGI, as amended by Article 157 of Finance Law for 2012 No. 2011 -1977 
of 28 December 2011, by Article 42 of Ordinance No. 2013 -676 of 25 July 2013, by Article 29 of 
Amending Finance  Law for 2013 No. 2013 -1279 of 29 December 2013 , by Article 48 of Amending 
Finance Law for 2014 No. 2014 -1655 of 29 December 2014 and by  Article 145 of Law 
No. 2015-990 of 6 August  2015 on growth, activity and equal economic opportunities , is applicable 
to activities created between 1 January 2006 and 31 December 2020 in all ZFU -TEs. These 
measures are also applicable, within the limits of the de minimis regulations , to activities already 
engaged in before 1  January 2006 in the new ZFU -TEs established by th e Law on equal 
opportunities. Activities created in "first generation" and "secon d generation" ZFU -TEs between G/SCM/N/315/EU/Add.10  
- 14 - 
 
  
 1 January and 2 April 2006 may be placed under the regime provided for in Article 44 octies  of the 
CGI or in that provided for in Article 44 octies A of the Code . 
 
Updating of references within Article 44 octies  and Article 44 octies  A of the CGI (in Article 45 of 
Amending Finance Law for 2007 No. 2007 -1824 of 25 December 2007, Article 2 of Finance Law for 
2010 No. 2009 -1673 of 30 December 2009, and Ar ticles 108 and 129 of Finance Law for 2011 
No. 2010-1657 of 29 December 2010 ). 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Article 44 octies  of the CGI: Exemption from profits tax for five years, then a reduction of 60%, 
40% and 20% fo r the first, second and third 12 -month periods following the exemption period. For 
enterprises with less than five employees, a reduction of 60%, 40% and 20% for the first five, the 
sixth and seventh, and the eighth and ninth 12 -month periods following the  exemption period.  
 
Exempt profits may not exceed €61,000 per taxpayer, per 12 -month period.  
 
In the "first generation" ZFU -TEs, the exemption is subject to compliance wit h Commission 
Regulation (EC) No  1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of 
the Treaty to de minimis  aid for concessions granted up to 31 December 2013, and to compliance 
with Commission Regulation (EU) No  1407/2013 of 18 December 2013 on the application of 
Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis  aid for 
conce ssions granted as of 1 January 2014. As regards taxpayers engaging in or creating an 
activity in one of the "second generation" ZFU -TEs before 1 January 2004 or the concessions 
granted after 1 January 2007, eligibility for exemption is also subject to comp liance with the 
regulations on de minimis  aid. 
 
Article 44 octies  A of the CGI: Exemption from profits tax for five years, then a reduction of 60%, 
40% and 20% for the first five, the sixth and seventh, and the eighth and ninth 12 -month periods 
following th e exemption period, whether the enterprise employs five or more employees (Note: for 
activities created as of 1 January 2015, the reduction period has been lowered to 36 months).  
 
Exempt profits may not exceed €50,000 per taxpayer, per 12 -month period, increased by €5,000 
for each new employee hired as from 1  January  2015 who is domiciled in an urban policy priority 
neighbourhood  or a ZFU -TE and is employed full -time for a period of at least six months .  
 
Eligibility for exemption is subject to compliance wit h Commission Regulation (EU) No  1407/2013 
of 18  December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning 
of the European Union to de minimis  aid. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Enterprise engaged in i ndustrial, commercial, crafts and non -commercial activities , for new or 
existing activities established in ZFU -TEs.  
 
- Allocation mechanism : By operation of law . 
 
- Conditions : Enterprises must carry out an actual activity in a ZFU -TE and must be 
physically established there, with operating resources for the activity engaged in. In the case of 
non-sedentary activity established in a ZFU -TE but carried out entirely or partially outside of that 
zone, the activity is assumed to be carried out within a ZFU -TE w hen at least one sedentary 
full-time employee carries out his/her work within the premises located in a ZFU -TE set aside for 
the activity, or when the enterprise realizes at least 25% of its turnover through clients located in 
the ZFU -TE. 
 
As for the 41 "second -generation" ZFU -TEs, new conditions h ave been established by Law 
No. 2003-1312 of 30 December 2003 regarding payroll numbers, turnover or balance sheet total, 
holding of capital when the enterprise has been set up as a company, and the enterprise's sector 
of activity. The conditions regarding payroll numbers and the holding of capital were  relaxed by 
Law No. 2005 -32 of 18 January 2005 on planning for social cohesion.  
 G/SCM/N/315/EU/Add.10  
- 15 - 
 
  
 These conditions also apply to the new "third -generation" ZFU -TEs created by Law No.  2006-396 
of 31 March 2006.  
 
An additional condition has been established for enterprises w ith at least one employee that have 
set up activities in a ZFU -TE between 1 January 2012 and 31 December 2014: Article  44octies  A of 
the CGI provides that exemption from profits tax is subject to eligibility for the exemption from 
social charges laid down in Article 12 of Law No. 96 -987 of 14 November 1996 concerning 
implementation of the Urban Regeneration Pact.  
 
Note: New conditions relating to employees are envisaged for activi ties created in ZFU -TEs as of 
1 January 2015. For activities created in ZFU -TEs as of 1 January 2016, eligibility for exemption is 
subject to the existence, at 1 January of the year of establishment, of the city contract provided 
for in Article 6 of Law No. 2014 -173 of 21 February 2014 on town planning and urban cohesion.  
 
6. Subsid y per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
- Article 44 octies  
Total amount for 2015 = €50 million ; 
Total amount for 2016 = €42 million.  
 
- Article 44 octies  A 
Total amount for 2015 = €175 million ; 
Total amount for 2016 = €185 million.  
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
Article 44 octies : Five years of total exemption, follo wed by a degressive reduction of 60%, 40% 
and 20% over three or nine years (depending on whether the enterprise employs less or more 
than five employees). These measures are no longer applicable to the creation of activities from 
the day after the date of publication of Law No. 2006 -396 of 31 March 2006 on equal 
opportunities, i.e. 3 April 2006.  
 
Article 44 octies  A: Five years of total exemption, then a degressive reduction of 60%, 40% and 
20% over nine years (reduced to three years for activities created a s of 1 January 2015).  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
- Article 44 octies  
Around 5, 800 beneficiaries in 2015, i.e. around €8, 621 p er enter prise.  
 
- Article 44 octies  A 
Around 17, 348 beneficiaries in 2015, i.e. around €10,088 per enterprise .  
 
3  R&D SCHEMES  
3.1  Tax credit to promote research  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
To encourage research and innovation by enterprises . 
 
3. Legal basis (reference, date ) 
 
Articles 244 quater  B, 199 ter B, 220 B and 223 O of the General Taxation Code . 
 G/SCM/N/315/EU/Add.10  
- 16 - 
 
  
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
Tax concession  – tax credit for certain research and innovation spending by en terprises . 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Industrial, 
commercial and agricultural enterprises . 
 
- Allocation mechanis m: Automatic, on simple declaration.  
For R&D activities, the tax credit is equivalent to 30% of research expenditure for the calendar 
year up to a ceiling of €100,000,000; it is reduced to 5% for the portion of research expenditure 
exceeding this ceiling.  
Expenditure on innovation activities other than R&D is taken into account when calculating the tax 
base for research credit up to an overall annual ceiling of €400,000. The tax credit rate is 20%.  
As regards collection expenditure, in principle the maximum  tax credit for research is €200,000 
over a period of three financial years, in accordance wit h Commission Regulation (EU) 
No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on 
the Functioning of the European Union to  de minimis  aid. 
 
- Conditions : Submission of a declaration indicating the amount of the research expenditure 
incurred by the enterprise over the calendar year . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
Fiscal expenditure in 2015 is estimated at €5,094 million  for the research tax credit (not including  
the innovation tax credit ) and €108 million  for the innovation tax credit . Fiscal expenditure in 2016 
is estimated at €5,420 million  for research tax credit (not including the innovation tax credit ) and 
€110 million  for innovation tax credit . 
In principle, the research tax credit is set off against the profits tax due for the year when the 
research expenditure was incurred. For the enterprise, any tax credit in excess of the profits tax 
constitutes a  receivable from the State, in the same amount, which is used to pay the profits tax 
due for the three years following the year for which it is recorded. The portion of the tax credit 
which remains unused at the end of this period is repaid.  
For certain categories of enterprise  (new enterprises, failing enterprises, young innovative 
enterprises, SMEs within the meaning of Community legislation  …), the research tax credit 
receivable is repaid immediately.  
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
Indefinite . 
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
The aid has no effect on trade as it is linked to the enterprise's research activity and not to its 
production or commercial capacity. This i s a general and non -specific fiscal measure which is not 
regarded as State aid by the French authorities . 
 
3.2  National Research Agency (ANR)  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective and/or purpose of the subsidy (or aid schem e) 
 
- To create new partnerships between public research and industrial research . 
- To launch projects in new fields of research and technology . 
- To foster the development of research and the transfer of technology in the regions.  
 G/SCM/N/315/EU/Add.10  
- 17 - 
 
  
 3. Legal basis (referen ce, date ) 
 
Agreement of 7 February 2005 establishing the National Research Agency Public Interest Group 
(GIP ANR).  
Decree No. 2006 -963 of 1 August 2006 relating to the organization and operation of the National 
Research Agency (ANR).  
Decree No. 2014-365 of 24 March  2014 amending Decree No.  2006-963 of 1 August  2006 on the 
organization and operation of the National Research Agency  (ANR) . 
Decree No. 2002 -178 of 13 February 2002 relating to State subsidy rates for investment projects 
and the corresponding adva nces. 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
 
- Subsidy (grant) appearing on the green list (Article 8.2(a)) and representing a maximum of 
50% of the total cost of the programme for enterprises. In certain cases, governed by 
Decre e No. 2002 -178 of 13 February 2002, direct government aid may amount to 100% of 
subsidizable expenditure (associations, foundations, public interest groups  – GIP). 
- All enterprises and public bodies engaged in fundamental research work or pre -competition 
development activities may apply under the same conditions.  
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
Beneficiaries (who receives the subsidy, the producer, the exporter, other ) 
 
The ANR is not intended to p rovide aid to enterprises, but to support research projects through 
calls for projects . A total of  37 calls for projects were launched in 2015, compared to 34 in 2016.  
In 2015 and 2016, 6. 1% and 8.43% of the grants went to enterprises . Overall, 92.2% of th e 
grants go to public enterprises (research institutions, universities, engineering schools, etc.).  
The distribution of grants by type of beneficiary has hardly changed since the creation of the ANR 
in 2005 .  
 
6. Subsidy per unit or, in cases where this is  not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
Commitments made following the ANR's calls for projects : 
2015: €390. 2 million, including €46. 3 million allocated to enterprises ; 
2016: €457. 6 million, including €31. 9 million allocated to enterprises .  
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
Permanent arrangement . 
 
8. Statistical data permitting an assessment of the trad e effects of the subsidy  
 
The projects in question are part of the upstream phase of the R&D process. The subsidies have no 
measurable impact on the trade performance of the enterprises involved. Only scientific and 
technical content is considered in the s election and evaluation of projects. This is general, 
non-specific aid within the meaning of the Agreement. The aid is notified strictly in the interests of 
transparency . 
 
Framework scheme  No. SA.40391 for aid for research, development and innovation . 
 
1. Period covered by the notification  
 
2015 and 2016.  
 
2. Policy objective and/or purpose of the subsidy (or aid scheme ) 
 
In 2014 the European Commission amended the rules governing member State intervention for 
the period 2014 -2020. Under this revised framew ork, aid scheme No. SA.40391 , which 
incorporates under one umbrella the research, development and innovation schemes  notified  for G/SCM/N/315/EU/Add.10  
- 18 - 
 
  
 the period  2013-2014 ( technology research institutes and  institutes for energy transition , the fund 
for enterprise competitive ness, the OSEO innovation aid scheme for research, development and 
innovation,  aid for innovation in the shipbuilding industry , shared innovation platforms , young 
innovative enterprises) , entered into force on 1 January 2015 . 
 
The aim of the scheme  is to f inance  research and development projects , upstream market 
research facilities  and the dissemination of  innovation  in favour of  SMEs  or ecosystems . 
 
3. Legal basis (reference, date ) 
 
Aid scheme No. SA.41391.  
 
4. Form of the subsidy (i.e. grant, loan, tax c oncession, etc .) 
 
- Subsidy  (grant ), repayable advance , loan, guarantee , exemption from social charges .  
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions ) 
 
SMEs and large companies . Rates of support  range  from 25% to 70% of the project's eligible 
amount , depending on  proximity to market and enterprise size. The smaller the enterprise and the  
further the activity is away from the market , the higher the  possible rate of support . 
 
6. Subsidy per unit or, in cases where t his is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year ) 
 
Commitments made for 2015: €1,849.7 million ; 
Commitments made for 2016 : data not yet availabl e. 
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
1 January  2015 to 31 December 2020.  
 
8. Statistical data permitting an assessment of the trade effects of the subsidy  
 
A plan to evaluate the implementation of this a id scheme  will be published in 2020 to identify  the 
positive  externalities  generated  by the support  provided . 
 
3.3  Support for institutions engaged in research for the sustainable development of air 
transport  
1. Period covered by the notification  
 
2015 and 2016 .  
 
2. Policy objective  
 
The main purpose of these subsidies is to help a number of public research institutions to provide 
the public with the scientific knowledge needed for a better understanding of the mechanisms of 
interaction between air transport and the enviro nment (climate, alternative fuels, icing).  
 
3. Legal basis  
 
Annual Finance Law.  
Arrangement approved by the European Commission (No. 395/2010), updated following the 
review of the General Block Exemption Regulation  ("RGEC") and the  Framework for State Aid for 
R&D&I . 
 
4. Form of the subsidy  
 
Non-repayable subsidy .  
 G/SCM/N/315/EU/Add.10  
- 19 - 
 
  
 5. Beneficiaries of the aid and allocation mechanism  
 
Mainly ONERA .  
 
6. Total amount  
 
2015: €9.1 million ; 
2016: €5.5 million . 
 
7. Duration of the subsidy  
 
Permanent scheme funded on an annual ba sis under the Finance Law .  
 
8. Statistical data  
 
The entities concerned are non -profit -making .  
 
3.4  Research for innovation and the sustainable development of air transport  
1. Period covered by the notification  
 
2015 and 2016 .  
 
2. Policy objective  
 
The over all objective of the research is to develop knowledge which improves the technological 
base in order to enhance the environmental performance of air transport.  
 
The research involves improving the understanding of phenomena with a view to selective further  
investigation in areas likely to yield gains in performance and in calculation accuracy with a view to 
shorter design cycles, as well as full -size testing.  
 
3. Legal basis  
 
Annual Finance Law.  
Arrangement approved by the European Commission (No . 395/2010) , updated  following  the 
review  of the  General Block Exemption Regulation  ("RGEC") and the Framework for State Aid for 
R&D&I . 
 
4. Form of the subsidy  
 
Non-repayable subsidy intended to finance part of the cost of several previously selected research 
operati ons. 
 
5. Beneficiaries of the aid and allocation mechanism  
 
In addition to research institutions, around 100 enterprises were involved in 2015 and 2016.  
 
6. Total amount  
 
2015: €88.4 million ;  
2016: €220.4 million .  
 
7. Duration of the subsidy  
 
Permanent arrangement funded on a yearly basis under the Finance Law .  
 
8. Statistical data  
 
The aid goes entirely to research and therefore has no bearing on product manufacture . 
 G/SCM/N/315/EU/Add.10  
- 20 - 
 
  
 4  SECTORAL SCHEMES  
4.1  Tonnage -based tax scheme  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective of the aid scheme  
 
To enable enterprises operating in maritime transport to meet international competition, safeguard 
Community jobs, preserve maritime know -how and maintain high safety levels with regard to 
ships and naviga tion. 
 
3. Legal basis   
 
Article 209 -0 B of the General Taxation Code deriving from Article 19 of Amending Finance Law for 
2002 No. 2002 -1576 of 30 December 2002, as amended by Article 47 of Amending Finance Law 
for 2005 No. 2005 -1720 of 30 December 2005, b y Article 80 of Amending Finance Law for 2006 
No. 2006 -1771,  and by Article 75 of Amending Finance Law No.  2014-1655 of 29 December 2014 . 
 
4. Form of the aid  
 
Under this arrangement, the tax due as a result of operations directly linked to the use of certa in 
ships (whether fully or jointly owned, or chartered on a bareboat or time basis) can be determined 
on a flat -rate basis. The flat rate is computed using a scale applied to each eligible vessel 
according to its net tonnage and increased, where appropriat e, by certain amounts . 
 
5. Beneficiaries of the aid and allocation mechanism  
 
- Beneficiaries : Firms subject to company tax, at least 75% of whose turnover is generated 
by the operation of merchant vessels . 
 
- Allocation mechanism : Upon option by the enter prise made for an irrevocable period of 
ten years renewable at the end of that period . 
 
- Conditions : Option for the tonnage -based tax scheme is valid only if the percentage of net 
tonnage shipped by the enterprise under the flag of a member State of the E uropean Union or the 
European Economic Area amounts to at least 25% at the date of commencement of the first period 
of implementation of the scheme and if, during the scheme's implementation period, the 
enterprise undertakes to maintain or increase the per centage of net tonnage shipped under the 
flag of a member State of the European Union or the European Economic Area at the date of 
commencement of the first period of implementation of the scheme . 
 
Non-compliance with the requisite percentage of no less th an 25% of the net tonnage carried by 
ships sailing under the flag of an EU or EEA member State at the date of commencement of the 
first period of implementation of the tonnage -based tax scheme renders the option null and void . 
 
In the event of non -complian ce with the undertaking to maintain or increase the percentage 
carried by EU - or EEA -flagged ships, and subject to exceptions, ships not sailing under the flag of 
an EU member State whose tonnage has reduced the percentage of net tonnage under the flag of 
an EU member State are not eligible for the tonnage -based tax scheme . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in th e 
previous year ) 
 
Total amount  for 2015: €60 million  for an unspecified number of enter prises ; 
Total amount  for 2016: unavailable .  
 G/SCM/N/315/EU/Add.10  
- 21 - 
 
  
 7. Duration of the subsidy and/or any other time -limits attached to it  
 
Long term . 
 
4.2  Ultrafast Broadband  Plan for France  
1. Period covered by the notification  
 
2015 and 2016 . 
 
2. Policy objective of the aid scheme  
 
Roll-out of the new generation ultrafast broadband networks (NGA networks) throughout the 
national territory, and especially outside densely populated areas . 
 
3. Legal basis   
 
Scheme No. SA.37183 (2015/NN).  
 
4. Form of the aid  
 
Subsidies for local authorities, which then award procurement contracts, public service 
concessions, public -private partnerships and State -owned corporations . 
 
5. Beneficiaries of the aid and a llocation mechanism  
 
- Beneficiaries : Equipment installation operators and optical fibre operators .  
 
- Allocation mechanism : Offsetting of the extra cost incurred because of the low population 
density of the area set for ultrafast broadband coverage .  
 
- Conditions : Valid only in as yet unserviced low -population -density areas . 
 
6. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit i n the 
previous year ) 
 
Amount in 2015 and 2016: €0 (see point 7  below ). 
 
7. Duration of the subsidy and/or any other time -limits attached to it  
 
This arrangement entered into force on 1 January  2017.  
 
8. Statistical data permitting an assessment of the trad e effects of the subsidy  
 
Verification that the amount offset is neither under - nor over -evaluated in respect of market 
prices . 
 
__________