G/SCM/N/284/EU/Add.10  
18 September 2015  
(15-4783)  Page: 1/30  
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/284/EU/Add.10 
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  FRANCE 
TABLE OF CONTENTS 
1  REGIONAL SCHEMES .................................................................................................... 3  
1.1  Industrial Redeve lopment Aid (ARI) .............................................................................. 3  
2  REGIONAL SCHEMES .................................................................................................... 3  
2.1  Metropolit an Fran ce .................................................................................................... 3  
2.1.1  Tax reduction fo r new enterp rises .............................................................................. 3  
2.1.2  Tax reduction for enterprises loca ted in rural revita lization areas .................................... 5  
2.1.3  Land-Use Manage ment Premiu m (PAT) ....................................................................... 6  
2.2  Corsica .................................................................................................................. ... 7 
2.2.1  Tax credit for certain investme nts made and exploi ted in Corsica .................................... 7  
2.3  French Overseas Departments (FOD) ............................................................................ 8  
2.3.1  Long-term tax treatment in French Overseas Departments ............................................ 8  
2.3.2  VAT deduction for cert ain exempted products .............................................................. 9  
2.3.3  Tax aid for investments in French  Overseas Department s and Territories ........................ 10 
2.3.4  Temporary exemption, subject to approval, from corporation tax for the creation of 
activities in French Overseas Departments ........................................................................... 12 
2.3.5  Reduced taxation of profits from operations in French Overseas Departments .................. 13 
2.3.6  Tax reduction for profits from  operations in Overseas France......................................... 13 
2.3.7  Freight support in the Overseas Departments ............................................................. 14 
2.4  Urban areas in difficulty .............................................................................................. 15 
2.4.1  Measures on behalf of urban free zones - entrepreneurship territories (ZFU-TE) ............... 15 
3  R&D SC HEMES ............................................................................................................ 17  
3.1  Tax credit to promote research .................................................................................... 17 
3.2  National Resear ch Agency  (ANR) ................................................................................. 18 
3.3  Technology research institutes (IRT) and institutes for energy transition (ITE) .................... 19 
3.4  Fund for Enterprise Competitiveness (FCE) .................................................................... 20 
3.5  OSEO Innovation Aid Scheme for Rese arch, Development and Innovation  (RDI) ................. 21 
3.6  Industrial Innovation Agency Aid for Industrial Innovation Promotion Programmes 
(PMII) ........................................................................................................................ .... 23 
3.7  Aid for innovation in the shipbuilding industry ................................................................ 24 
3.8  Aid for innovation in the digital sector  and aid for shared i nnovation pl atforms ................... 25 
3.9  Support for institutions engaged in research for the sustainable development of air 
transp ort ..................................................................................................................... ... 25 
3.10  Research for innovation and the su stainable development of air tr ansport ........................ 26 
3.11  Young Innovative Enterprises (JEI) ............................................................................. 27 
4  SECTORAL REGIME ..................................................................................................... 28  
4.1  Tonnage-bas ed tax scheme......................................................................................... 28 
4.2  National ultrafast broa dband programme  (Part B) .......................................................... 29 
 G/SCM/N/284/EU/Add.10 
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  1  REGIONAL SCHEMES 
1.1  Industrial Redevelopment Aid (ARI) 
1. Period covered by the notification 
 
2013 and 2014. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
Aid in the form of repayable advances to industrial or industrial services enterprises with 
productive and job-creating investment projects in order to promote a business-friendly environment and regional industrial redevelopment.  
3. Legal basis (reference, date) 
 
Schemes exempt from prior notification No. X 65/2008 and No. X 68/2008.  
4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Repayable advance.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 
Beneficiaries (who receives the subsid y, the producer, the exporter, other)  
Industrial and industrial services enterprises. 
Eligible amount: cost price of new equipment (excl. replacement investment). 
 Levels of aid: 30% for SMEs; 
15% for major businesses in areas eligible for regional aid. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
  Amount for 2013: €5,560,000 
 Amount for 2014: Data not yet available. 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme applies until 31 December 2014. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Scheme contributing to industrial redevelopment and job creation throughout the territory. 
 2  REGIONAL SCHEMES 
2.1  Metropolitan France 
2.1.1  Tax reduction for new enterprises 
1. 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.  2. Period covered by the notification 
 2013 and 2014.  G/SCM/N/284/EU/Add.10 
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  3. General 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.  
4. 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 Decemb er 2003, as amended by Article 87 of Law 
No. 2006 No. 2006-1771 of 30 December 2006, by Article 45 of Amending Finance Law for 2007 No. 2007-1824 of 25 December 20 07, by Article 62 of Amen ding 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, and by Article 47 of Amending Finance Law for 2014 
No. 2014-1655 of 29 December 2014.  5. 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 prof its earned over the three subsequent 12-month periods (75%, then 
50%, then 25%). 
 
Enterprises which set up in rural revitalization areas between 1 January 2004 and 31 December 2010 are eligible for exemption from profits tax unt il the end of the fifty-ninth month following the 
month of set-up, followed by a reduction for profits earned over the subsequent nine 12-month 
periods (60% in the first five 12-month periods,  40% in the sixth and seventh 12-month periods, 
and 20% in the eighth and ninth 12-month periods).  For accounting periods closed with effect from 1 January 2007 to 31 December 2013, eligibility for 
the benefit is subject to compliance with Commission Regulation (EC) No. 1998/2006 of 
15 December 2006 on de minimis  aid. For accounting periods closed with effect from 
1 January 2014, eligibility for the benefit is subject to compliance with Commission Regulation (EU) No. 1407/2013 of 18 December 2013 on de minimis  aid. 
 
6. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, 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 by natural persons, and which are set up in specified areas. 
- Allocation mechanism : By operation of law. 
- Conditions : Genuinely new enterprises set up in elig ible areas and the headquarters and all 
activities and operating resources of which are established in the area concerned. However, in the case of enterprises exercising a non-se dentary 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 thre shold, profits are taxed but on the basis of 
turnover generated outside such areas). 
 7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Total amount for 2013: €109 million (€110 million in 2014). Average subsidy per unit: around €4,000 in 2013. 
 
8. Duration of the subsidy and/or any other time-limits attached to it 
 Five years (or 14 years for enterprises created between 1 January 2004 and 31 December 2010 in 
rural revitalization areas), the scheme being applicable to enterprises set up by 31 December 2020 
in areas eligible for regional aid (up to 31 Dece mber 2010 in rural revitalization areas or urban 
redevelopment areas).  G/SCM/N/284/EU/Add.10 
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  9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Around 27,000 beneficiaries in 2013.  2.1.2  Tax reduction for enterprises loca ted in rural revitalization areas 
1. Title of the aid scheme 
 
Tax exemption on profits earned by enterprises crea ted or taken over in rural revitalization areas. 
 
2. Period covered by the notification 
 2013 and 2014. 
 
3. General 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. 
 4. 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 and by Article 47 of Amending Finance Law for 2014 No. 2014-1655 of 29 December 2014.  
5. 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 earned over the subsequent three 
12-month periods (75%, then 50%, then 25%). 
 Eligibility for the benefit is subject to complia nce with Commission Regulation (EC) No. 1998/2006 
of 15 December 2006 on 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 de minimis  
aid for concessions granted as of 1 January 2014.  6. 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 ten 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 ten 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 headquarters and all activities and operating resources of which are established in the area concerned. However, 
in the case of enterprises exercising a non-se dentary activity, conditions of establishment 
are considered to have been met if turnover generated outside eligible areas does not exceed 25% of total turnover (above this thre shold, profits are taxed but on the basis of 
turnover generated outside such areas). 
 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Total amount for 2013: €5 million 
Total amount for 2014: €7 million.  G/SCM/N/284/EU/Add.10 
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  8. Duration of the subsidy and/or any other time-limits attached to it 
 
Eight years. The scheme applies to enterprises created or taken over up to 31 December 2015.  2.1.3  Land-Use Management Premium (PAT) 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 Creation, extension or takeover of production activities in priority areas (areas eligible for regional 
aid), or support for research, development and innovation activities throughout the territory. 
 3. Legal basis (reference, date) 
 
Up to 30 June 2014, the current scheme was governed by two decrees and an order: 
  Decree  No. 2007-809 of 11 May 2007 concerning the land-use management premium for 
industry and services;  
 Decree No. 2007-1029 of 15 June 2007  concerning the land-use management premium for 
research, development and innovation;  
 Order of 3 March 2010  establishing  the composition and operating rules of the 
Interministerial Commission on aid for the localization of activities, the procedures for 
preparing and submitting applications for the premium, the procedures for the notification of decisions, the list of qualifying sections of the classification of economic activities or 
products, and the closing date for the submission of applications. 
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 concession, etc.) 
 Subsidy.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries : Up to 30 June 2014, enterprises whose sector of activity is listed in Annex 2 
of the Order of 3 March 2010, i.e. mainly th e manufacturing industry and certain services. 
 
- As of 19 September 2014, enterprises whose sector of activity is listed in Annex 2 of Decree 
No. 2014-1056. 
 - Allocation mechanism : Decision by the Minister for Town and Country Planning. 
 
- Conditions : 
 G/SCM/N/284/EU/Add.10 
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  Industry and services PAT 
 
The three categories of eligible project and the el igibility thresholds in terms of jobs created or 
maintained or invested amounts are summarized in the table below. 
 
 Eligibility thresholds 
Type of project 2007 Decree  2014 Decree  
Setting up an establishment  25 net jobs created and 
investment of €5 million; or 
 50 net jobs created  20 net jobs created and 
investment of €3 million 
Extension, diversification or fundamental change of process  25 net jobs, representing at least 
50% of the company's workforce; or 
 50 net jobs; or 
 Investment of €10 million  20 net jobs, representing at 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 competitiveness 
 Takeover of 80 jobs and 
investment of €5 million  Dire employment situation 
 Sustainable and structural 
recovery of the company's competitiveness 
 Significant number of jobs 
maintained within the company 
 Takeover of 50 jobs and 
investment of €3 million 
 
Research - Development - Innovation PAT 
 The programme envisaged must lead to the creation of at least 20 jobs or to research costs of at 
least €7.5 million.  
The research, development and innovation PAT expired on 30 June 2014. 
 6. Total annual amount 
 
2013: €35,656,000. 
2014: €34,647,300.  7. Duration of the subsidy and/or any other time-limits attached to it 
 General scheme valid until 31 December 2020.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 2013 2014 
Number of assisted jobs created or maintained 7,521 7,795 
Productive investments assisted €1,185,050,000 €1,155,907,205 
 
2.2  Corsica 
2.2.1  Tax credit for certain investments made and exploited in Corsica 
1. Period covered by the notification 
 
2013 and 2014.  2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 To promote investment in Corsica. G/SCM/N/284/EU/Add.10 
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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 28 December 2011, Article 32 of 
Amending Finance Law for 2012 No. 2012-1510 of 29 December 2012, Article 20 of Amending Finance Law for 2014 No. 2014-891 of 8 August 2014,  and Article 78 of Amending Finance Law for 
2014 No. 2014-1655 of 29 December 2014. 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 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. 
 - Allocation mechanism : Upon option by the enterprise. 
 
- Conditions : Investments eligible for tax credit are those used in Corsica, other 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 Comm unity law, etc.), receivables ( amounts due ) for tax credits 
calculated in respect of investments made as of 1 January 2012 are immediately repayable. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
  Total amount of tax credit for 2013 and 2014:  €43 million in 2013 and €39 million in 2014. 
Number of beneficiaries in 2013: 3,885 enterprises.  Average amount of the subsidy per unit in 2013: around €11,070. 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
This aid scheme applies to investments made between 1 January 2002 and 31 December 2020.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Not available.  
2.3  French Overseas Departments (FOD) 
2.3.1  Long-term tax treatment in French Overseas Departments 
1. Period covered by the notification 
 
2013 and 2014. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To contribute to the promotion of the Overseas  Departments and, more generally, to encourage 
their economic development.  3. Legal basis (reference, date) G/SCM/N/284/EU/Add.10 
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Article 1655 bis of the General Taxation Code, deriving from Decree No. 58-558 of 28 June 1958 
and last amended by Article 44 of Law No. 96-1182 of 30 December 1996.  4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Tax concession. This arrangement mainly involves exemption from corporation tax on reinvested profits and from import and export duties and fees on certain products. This scheme may not be applied concurrently, except with regard to mining companies operating in the department of 
Guyana, with the exemption arrangements provided for under Article 208 quater  of the General 
Taxation Code.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Public 
limited companies, partnerships limited by share capital, and limited liability companies the purpose of which is research and mining in the Overseas Departments; public limited 
companies, limited liability partnerships and limited liability companies with agricultural, 
forestry or industrial activities in the department of Guyana; and companies the sole purpose of which is to conduct industrial activities in the departments of Guadeloupe, Martinique and Reunion comprising an investment programme for a minimum of 
€3,048,980.30. 
 - Allocation mechanism : Prior approval by the Minister of the Economy, Finance and 
Industry. 
 
- Conditions : See above. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
  Total amount for 2013 and 2014: under €500,000. 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
The duration of the subsidy is specified in the authorization for each particular case and is limited to a maximum of 25 years, plus, where appropriate, installation time not exceeding five years. It 
applied to companies that had submitted an application for authorization prior to 
31 December 2001. 
 The subsidy has not been extended.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
No company requested an authorization in 1996 or 1997. Six authorizations were granted to mining companies in 1998 and 1999. 
No authorizations were granted in 2000. 
Two authorizations were granted in 2001.  2.3.2  VAT deduction for certain exempted products 
1. Period covered by the notification 
 
2013 and 2014.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote economic development in Overseas De partments 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) G/SCM/N/284/EU/Add.10 
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Articles 295 and 295 A of the General Taxation Code (CGI) and Articles 50 undecies and 
50duodecies  of Annex IV to the CGI. 
 4. Form of the subsidy (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 purchase or import (in acco rdance with the provisions of Article 295 1° and 
5° of the CGI). These goods are listed in Articles 50 undecies  and 50 duodecies  of Annex IV to the 
CGI.  5. Beneficiaries of the aid and allocation mechanism (calculation 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 Overseas Departments of 
Guadeloupe, Martinique or Reunion and engage in activities there which are eligible for the 
deduction by application of Article 271 of the CGI. 
 - Allocation mechanism : Deduction of VAT. 
 
- Conditions : Uncollected 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, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
 Total amount for 2013: €100 million (fiscal expenditure). 
 Total amount for 2014: €100 million (fiscal expenditure). 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
Permanent scheme. 
 
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 Not available. 
 
2.3.3  Tax aid for investments in French Overseas Departments and Territories 
1. Period covered by the notification 
 
2013 and 2014. 
 2. General 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  B of the CGI, as amended by Article 21 of Finance Law for 2014 
No. 2013-1278 of 29 December 2013, Article 71 of Finance Law for 2015 No. 2014-1654 of 29 December 2014, and Article 67 of Amending Finance Law for 2014 No. 2014-1655 of 29 December 2014; Articles 95 K to 95 V of Annex II to the CGI; 
and Article 18-0 bis A of Annex IV to the CGI; BOI-BIC-RICI-20-10-10-20120912; 
 
- Articles 217 undecies  and 217 duodecies  of the CGI, as amended by Article 21 of 
Finance Law for 2014 No. 2013-1278 of 29 December 2013 and Article 67 of 
Amending Finance Law for 2014 No. 2014-1655 of 29 December 2014; 
Articles 140 quater  to 140 quaterdecies  of Annex II to the CGI; and Article 46 quater  -
0 ZZter of Annex III to the CGI; BOI-IS-GEO-10-30-201302074. G/SCM/N/284/EU/Add.10 
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4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Tax concession. Deduction of the amount of eligible investment from the profits subject to corporation tax, or an income tax reduction for taxpaying natural persons. 
 
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 
(FOD, including Mayotte since 2013), Saint Barthélemy, Saint Martin, Saint Pierre and 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 benefiting from the 
tax aid and operate it or lease it in turn to a company operating in these territories, provided, inter alia , that part of the tax concession is passed on. 
 
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 referred to in 
Article 239 quater  or 239 quater  C of the same Code (economic interest groupings) which 
make productive investments ov erseas intended for use in certain sectors of activity, or, 
solely in respect of enterprises subject to corporation tax, which 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 Overseas Departments. 
 
- Allocation mechanism : Prior authorization must be obtained for eligible investments in 
excess of €250,000 or €1 million, depending on the type of financing arrangements. Authorization is automatic for investments below these amounts, with the exception of investment in the following: the transport, recr eational boating, agriculture, sea fishing and 
aquaculture sectors, the coal and iron and steel industries, the shipbuilding or synthetic 
fibres sectors and the 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 engaged in agricultural, industrial, commercial or crafts 
activities outside the following sectors: trade; cafés, tobacconists and bars/public houses, as well as catering
1; business advisory services and consultancy; education, health and social 
welfare; banking, finance and insurance; all re al 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 electricity 
from solar radiation. 
 
6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
 Total amount for 2013: €557 million and for 2014: €485 million (estimate). 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
                                               
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 purpos es of the award of that title and, where applicable, 
tourist restaurants which were graded on the date of  publication 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 chan ce or gambling and, on the other hand, of audiovisual 
and cinematographic produc tion and broadcasting; an d associative activities. G/SCM/N/284/EU/Add.10 
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  The current scheme is in force until 31 December 2017. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 Amounts disbursed for applications approved in 2013: 
 
- Article 199 undecies  B: €131,409,317; 
- Article 217 undecies : €175,579,850. 
 
Amounts disbursed for applications approved in 2014: 
 - Article 199 undecies  B: €88,070,386; 
- Article 217 undecies : €160,529,000. 
 
2.3.4  Temporary exemption, subject to approval , from corporation tax for the creation 
of activities in French Overseas Departments 
1. Period covered by the notification 
 
2013 and 2014.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote economic development and employment in the Overseas Departments.  
3. Legal basis (reference, date) 
 
Article 208 quater  of the General Taxation Code, deriving from Article 9 of Law No. 60-1368 of 
21 December 1960, as last amended by Articles 86-I and 86-II of Law No. 2001-1275 of 
28 December 2001. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Tax concession. Temporary exemption from corporation tax for profits resulting from the 
authorized activity within the limits set forth in the authorization. The exemption does not apply to capital gains from the transfer of all or some of the company's shares or fixed assets.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Companies which, in a limited number of listed sectors, create a new activity likely to contribute to the economic development of the Overseas Departments and create new jobs. 
 
- Allocation mechanism : Prior authorization from the Minister for the Budget. 
 - Conditions : Activities in agriculture, industry, the hotel trade, tourism with the exception of 
the cruise industry, fisheries, alternative sources of energy, construction and public works, 
transport, crafts, computer services, audiovisual and cinematographic production and broadcasting, maintenance services for all qualifying sectors, concessions for local public services of an industrial or commercial nature, and medium-standard welfare housing. 
 
6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
 Total amount for 2013: €0, and for 2014: €0. 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
Exemption is granted for a ten-year period starting from the actual commissioning of the 
installations to be used in carrying out the authorized activity. The scheme applies to companies 
that submitted an application for authorization prior to 31 December 2006.  G/SCM/N/284/EU/Add.10 
- 13 - 
  The subsidy has not been extended. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 No authorization issued since 2005. 
 
2.3.5  Reduced taxation of profits from oper ations in French Overseas Departments 
Entry deleted: This scheme, provided for under Article 217 bis of the CGI, was terminated by 
Article 10 of Finance Law for 2012 No. 2011-1977 of 28 December 2011, in respect of accounting 
periods closed with effect from 31 December 2011.  2.3.6  Tax reduction for profits from op erations in Overseas France 
1. Period covered by the notification 
 
2013 and 2014.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote economic development and employment in the Overseas Departments.  
3. Legal basis (reference, date) 
 
Article 44 quaterdecies  of the General Taxation Code, deriving from Article 4 of Law No. 2009-594 
of 27 May 2009, as amended by Article 67 of Amending Finance Law for 2014 No. 2014-1655 of 
29 December 2014. 
 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 Reunion). 
 
- Allocation mechanism : Upon option. 
 - Conditions : Enterprises operating in Guadeloupe, Guyana, Martinique, Mayotte or Reunion 
qualify for a profits tax reduction if the following conditions are satisfied: they employ fewer 
than 250 employees and have an annual turnov er of less than €50 million; the operation's 
principal activity is in one of the sectors eligible for the tax reduction 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 certai n categories of aid compatible with the 
internal market in application of Articles 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, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Total amount for 2013: €87 million, 
Total amount for 2014: €84 million (estimate).  G/SCM/N/284/EU/Add.10 
- 14 - 
  7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme is applicable to accounting periods opened by 2017.  
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 Not available.  2.3.7  Freight support in the Overseas Departments 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 - To offset the extra transport costs incurred by private enterprises and public services within 
the national boundaries, from the European po rt of departure to delivery in the Overseas 
Departments, on the one hand, and from the Ov erseas Department production unit to the 
European port of arrival, on the other. 
 - To promote the development of private enterp rises and public services and to generate 
employment, by offsetting the transport costs incurred by the beneficiaries. 
 3. Legal basis (reference, date) 
 
Law No. 2009-594 of 27 May 2009 on the economic development of Overseas France, and 
Article 24 in particular.  Decree No. 2010-1687 of 29 December 2010 on freight aid for enterprises in Overseas 
Departments, Saint Pierre and Miquelon, Mayotte, Saint Barthélemy, Saint Martin, and the Wallis 
and Futuna 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 following: the automotive, 
synthetic fibres, iron and steel, and coal industries and the fisheries sector, as well as the agricultural products listed in Annex I of the Treaty on the Functioning of the 
European Union. 
 - Eligible expenses : 
 
- In geographical terms: cost of transport between an Overseas Department and the 
European continent and inter-island transport in the Guadeloupe archipelago (importation). Inter-Overseas Department transport is excluded. 
- Categories of expenditure : pre-tax cost of maritime or air transport, including 
insurance, handling and pre-clearance temporary storage charges; 
o of raw materials (primary or intermediate products) and equipment, at 
importation, needed for an enterprise's production cycle; 
o of locally produced finished products delivered to the European continent. 
- Basis of calculation : the cost of transport, whichever the European port or airport of 
origin or destination, is the cost of equivalent transport between the Overseas Department concerned and continental France. 
 G/SCM/N/284/EU/Add.10 
- 15 - 
  6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
2013: €13.16 million. 2014: 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 2013. 
 
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 Not available.  
 
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 
 
2013 and 2014.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote the creation 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  o f  t h e  G e n e r a l  T a x a t i o n  C o d e ,  d e r i v i n g  f r o m  A r t i c l e s  2 ,  5 A  a n d  5 C  o f  L a w  
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-generation") 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 su ch 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, deriving 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, and by Article 48 of Amending Finance Law for 2014 No. 2014-1655 of 29 December 2014, 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 the Law on equal opportunities. Activities created in "first generation" and "second genera tion" ZFU-TEs between 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 Articles 108 and 129 of Finance Law for 2011 
No. 2010-1657 of 29 December 2010).  G/SCM/N/284/EU/Add.10 
- 16 - 
  4. Form of the subsidy (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% for the first, second and third 12-month periods following the exemption period. For enterprises with less than five employees, a redu ction 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 with 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 th e Functioning of the European Union to de minimis  aid for 
concessions granted as of 1 January 2014. As re gards taxpayers engaging in or creating an 
activity in one of the "second generation" ZFU-TE s before 1 January 2004 or eligibility for the 
concessions granted after 1 January 2007, eligibility for exemption is also subject to compliance 
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 the 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 €100,000 per taxpayer, per 12-month period, increased by €5,000 
for each new employee hired from 1 January 2006 who is domiciled in a sensitive urban zone 
(ZUS) or a ZFU-TE and is employed full-time for a period of at least six months (Note: for activities 
created as of 1 January 2015, the tax exempt ion ceiling has been lowered to €50,000 per 
taxpayer, per 12-month period, increased by €5,000 for each new employee hired 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 mo nths). For taxpayers engaged in activities before 
1 January 2006 or having created an activity since 1 January 2012 in the "third generation" ZFU-TEs, eligibility for exemption is subject to compliance with Commission Regulation (EC) 
No. 1998/2006 of 15 December 2006 on the applicat ion of Articles 87 and 88 of the Treaty to 
de minimis  aid, 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 concessions granted as of 1 January 2014. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Industrial, commercial, crafts and non-commercial activities for their 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 when 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 en terprise realizes at least 25% of its turnover 
through clients located in the ZFU-TE. 
 
 As for the 41 "second-generation" ZFU-TEs, new conditions have been established by Law 
No. 2003-1312 of 30 December 2003 regarding pa yroll 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/284/EU/Add.10 
- 17 - 
   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 with at least one employee that 
have set up activities in a ZFU-TE between 1 January 2012 and 31 December 2014: 
Article 44 octies  A of the CGI provides that exemption from profits tax is subject to eligibility 
for 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 activities 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 Janua ry 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. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Total amount for 2013: €232 million. Total amount for 2014: €247 million. 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
Article 44 octies : Five years of total exemption, followed 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 as of 1 January 2015). 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Around 23,500 beneficiaries in 2013. 
 3  R&D SCHEMES 
3.1  Tax credit to promote research 
1. Period covered by the notification 
 
2013 and 2014.  
2. General 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. 
 
4. Form of the subsidy (grant, loan, tax concession, etc.) 
 
Tax concession - tax credit for certain research and innovation spending by enterprises.  
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 mechanism : Automatic, on simple declaration. G/SCM/N/284/EU/Add.10 
- 18 - 
   
 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 ov erall 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 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. 
 
- 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, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Total amount for 2013: €3,269 million and for 2014: €5,550 million. 
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 enterpri se, 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 enterprises (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 period. 
 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 is 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 
 
2013 and 2014. 
 
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 - 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. 
 3. Legal basis (reference, date) 
 Agreement of 7 February 2005 establishing the Na tional Research Agency Public Interest Group 
(GIP ANR).  
Decree No. 2006-963 of 1 August 2006 relating to the organization and operation of the ANR. 
 G/SCM/N/284/EU/Add.10 
- 19 - 
  Decree No. 2002-178 of 13 February 2002 relating to State subsidy rates for investment projects 
and the corresponding advances.  4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
- Subsidy (grant) appearing on the green list (A rticle 8.2(a)) and representing a maximum of 
50% of the total cost of the programme for en terprises. In certain cases, governed by 
Decree 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 subsid y, the producer, the exporter, other) : 
 
The ANR is not intended to provide aid to en terprises, but to support research projects 
through calls for projects. Fifty-one calls for projects were launched in 2013, compared to 36 in 2014.  
In 2012 and 2013, 8.6% and 9.3% of the grants went to enterprises. Overall, some 85% of 
the grants go to public enterprises (research institutions, universities, engineering schools, etc.).  
The distribution of grants by ty pe of beneficiary has hardly changed since the creation of the 
ANR in 2005. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Commitments made following th e ANR's calls for projects: 
 
2013 : €436 million, including €40.5 million allocated to enterprises. 
2012 : €555.6 million, including €46.6 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 trade 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 selection 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.  3.3  Technology research institutes (IRT) and institutes for energy transition (ITE) 
1. Period covered by the notification 
 
2013.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
Under a joint public-private investment approach, the purpose of the scheme is to foster research partnerships by creating a limited number of technological innovation parks with a worldwide 
dimension that bring together, in a single location, teaching establishments, public and private 
research laboratories, prototyping and industrial demonstration resources, and industrial players.  G/SCM/N/284/EU/Add.10 
- 20 - 
  The purpose of the subsidy is to fund training and R&D activities, as well as feasibility studies 
conducted by IRTs and ITEs. It is also designed to cover costs associated with intellectual property rights where the IRTs or ITEs come under the definition of SMEs given in the Annex to Commission Regulation (EU) No. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty. 
 
3. Legal basis (reference, date) 
 Amending Finance Law for 2010 No. 2010-237 of 9 March 2010. 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Subsidy (grant). 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 The beneficiaries are IRTs and ITEs selected on the basis of criteria of scientific excellence, 
following a call for projects launched by the ANR under the programme "Investing for the Future". 
 The subsidies are designed to support the implementa tion of R&D projects by IRTs and ITEs, either 
individually or jointly with public and private part ners. The aid for each project is allocated on the 
basis of an analysis by scientific experts. 
 The maximum amount of aid for each project is determined pursuant to Commission Regulation 
(EU) No. 651/2014 of 17 June 2014 declaring certain ca tegories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Commitments made for 2013: €117.09 million.  7. Duration of the subsidy and/or any other time-limits attached to it 
 End of subsidies for IRT and ITE R&D projects: 31 December 2020.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 The projects funded are R&D projects. The subsid ies have no measurable impact on the trade 
performance of the enterprises involved. Only scientific and technical content is considered in the selection and evaluation of projects. This aid is notified in the interests of transparency. 
 
3.4  Fund for Enterprise Competitiveness (FCE) 
1. Period covered by the notification 
 
2013 and 2014. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
Support for collaborative R&D projects designed to overcome technological barriers, which are 
selected on the basis of a call for projects published on the Internet, either domestically through competitiveness clusters, or at European level via the Eureka clusters.  
In exceptional cases, the FCE may provide support for so-called "strategic" projects, which were 
not selected under previous calls for projects and are not collaborative in nature. According to the French authorities, such exceptions are warranted by the need for speedy action because the enterprises involved have tighter decision-making deadlines than is usually the case for R&D 
projects. 
 3. Legal basis (reference, date) 
 G/SCM/N/284/EU/Add.10 
- 21 - 
  17 September 2007. 
 Aid Number : No. 269/2007. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Subsidies.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
  The recipient projects are implemented by large enterprises, SMEs and research institutions. 
 
 These projects are medium-scale (a few million euros on average) and are devoted to 
industrial research and experimental development. Prior technical feasibility studies are also 
supported by the FCE.  
 The maximum levels of aid are as follows: 
- 50% for industrial research activities; 
- 25% for experimental development activities.  The above rates may be increased as follows, up to a ceiling of 80%: 
 
- plus 20 and 10 percentage points for small and medium-sized enterprises respectively; - plus 15 percentage points for collaborative activities.  
6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Budget: 2008: €209,532,000 
 2009: €246,502,000 
 2010: €105,370,000  2011: €165,600,000  2012: €357,197,000 
 2013: €103,920,000 
 2014: Data not yet available.  7. Duration of the subsidy and/or any other time-limits attached to it 
 Permanent arrangement funded on a yearly basis under the Finance Law.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 The purpose of the programme is to finance innovation:  - the expenditure financed concerns research  and development and consequently has no 
effect on production costs; 
 - being innovative, the products and processes in question do not compete with existing ones.  
The programme consequently has no trade effect and is notified merely in the interests of 
transparency.  3.5  OSEO Innovation Aid Scheme for Resear ch, Development and Innovation (RDI) 
1. Period covered by the notification 
 
2013 and 2014.  G/SCM/N/284/EU/Add.10 
- 22 - 
  2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
 To support SMEs conducting research and innovation projects with domestic and external 
marketing potential.  
 To support the creation of innovative enterprises. 
 
 To support the dissemination of innovation through the transfer of technology and R&D 
cooperation. 
3. Legal basis (reference, date) 
 
Decree No. 2005-466 of 8 July 2005 adopting the Ar ticles of Association of the public limited 
liability company OSEO-ANVAR. 
Aid scheme No. 408/2007 adopted by the European Commission on 17 January 2008. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Loans repayable without interest on the basis of a retrospective study of the risks and subsidies. 
 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 cooperating with SMEs, and medium-sized enterprises with up to 
2,000 employees. 
 
- Allocation mechanism . 
 - Conditions : 
 
 Support for R&D projects (large enterprises and SMEs): The maximum levels of aid are 
as follows: 
- 50% for industrial research activities; 
- 25% for experimental development activities. 
 
These rates may be increased as follows, up to a ceiling of 80%:  - plus 20 and 10 percentage points for small and medium-sized enterprises, respectively; 
- plus 15 percentage points for collaborative activities. 
  Support for industrial research feasibility studies (maximum level of aid: 60%) and 
experimental development feasibility studies (maximum level: 50%). 
 
 Support for patent applications (SMEs only): covers SMEs' intellectual property 
application, grant and renewal costs, up to the ceiling amounts specified for R&D projects. 
 
 Support for recruitment for innovation purposes (SMEs): covers up to 75% of the costs of 
recruiting qualified personnel. 
6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Budget: 2008: €110,227,000  2009: €91,480,000 
 2010: €307,590,000 
 2011: €331,300,000  2012: €190,939,000  2013: €308,215,000 
 2014: Data not yet available. 
 G/SCM/N/284/EU/Add.10 
- 23 - 
  7. Duration of the subsidy and/or any other time-limits attached to it 
 
Permanent arrangement funded on a yearly basis under the Finance Law.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 The purpose of the programme is to finance innovation:  - the expenditure financed concerns R&D and consequently has no effect on production costs; 
 
- being innovative, the products and processes in question do not compete with existing ones.  The programme consequently has no effect on trade. 
 
3.6  Industrial Innovation Agency Aid for Indu strial Innovation Promotion Programmes 
(PMII) 
1. Period covered by the notification 
 
2013 and 2014.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To initiate collaborative industrial innovation promotion programmes aimed at developing a new high-technology product or service on a global market scale over a five- to ten-year period and 
comprising a strong innovation component marked by scientific novelty or the combination of 
several complex technologies. Cooperation at European level is encouraged.  3. Legal basis (reference, date) 
 Aid Number : No. 121/2006 approved by the European Commission on 19 July 2006. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
  Experimental development stages: advances repayable at the Community rate in force, 
increased by an additional amount repayabl e in the event that performance exceeds the 
anticipated theoretical success rate.  
 Industrial research stages: subsidies. 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 
 Beneficiaries (who receives the subsidy, the producer, the exporter, other) : Large 
industrial enterprises, SMEs and research laboratories. 
 
 Conditions : The maximum levels of aid are as follows: 
- 50% for industrial research activities (subsidies); 
- 40% for experimental development activities (repayable advances). 
 These rates may be increased as follows, up to a ceiling of 80%:  
- plus 20 and 10 percentage points for small and medium-sized enterprises, respectively; 
- plus 15 percentage points for collaborative activities.  6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Budget : 2008: €131.4 million 
 2009: €177 million 
 2010: €88.4 million 
 2011: €198 million G/SCM/N/284/EU/Add.10 
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   2012: €184,487,000 
 2013: €232,086,103  2014: Data not yet available.  7. Duration of the subsidy and/or any other time-limits attached to it 
 Permanent arrangement funded on a yearly basis under the Finance Law. The arrangement expired on 31 December 2012.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
The purpose of the programme is to finance R&D:  
- the expenditure financed concerns R&D and consequently has no effect on production costs; 
 - being innovative, the products and processes in question do not compete with existing ones.  
A detailed analysis of market failures is carried out to ensure that the programme has no trade 
effects. Large-scale projects have been notified for the sake of transparency. 
 3.7  Aid for innovation in the shipbuilding industry 
1. Period covered by the notification 
 
2013.  
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
The purpose of the scheme is to promote i nnovation in the shipbuilding industry. 
 
3. Legal basis (reference, date) 
 
Aid Number : SA 34293 (2012/N) approved by the European Commission on 19 October 2012. 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Subsidy and repayable advance.  
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 
 Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Shipyards and construction companies specializing in floating and mobile offshore 
structures. 
 
 Conditions : The maximum levels of aid are as follows: 
- 20% of the costs of investment, engineering desi gn and testing of the innovative part of the 
project. 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Budget : 2013: €0. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 The scheme is in effect until 31 December 2013.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 The aid is granted subject to prior verification of the absence of distortion of competition.  G/SCM/N/284/EU/Add.10 
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  3.8  Aid for innovation in the digital sector and aid for shared innovation platforms 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 The aim of this scheme is to promote aid for innovation, mainly for SMEs, and to encourage the 
grouping and building up of shared resources en abling SMEs to innovate. One component of this 
scheme is specifically geared to the digital sector.  3. Legal basis (reference, date) 
 Aid Number : SA 33615 (2011/N) approved by the European Commission on 31 January 2012. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Subsidy and repayable advance.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 
 Beneficiaries  (who receives the subsidy, the producer, the exporter, other): Young 
innovative enterprises (JEI), SMEs and large enterprises.  
 Conditions : The maximum levels of aid are as follows: 
- 15% to 50% of innovation-related operating an d investment costs (levels vary according to 
the size of the enterprise); 
 6. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 Budget : 2012: €690,000 
 2013: €114,260,000 
 2014: Data not yet available. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme expired on 31 December 2014. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
The programme is aimed at funding R&D. 
 Granting of the aid is contingent upon prior verification, based on a comparison between its 
positive and negative effects, of the absence of distortion of competition. 
 
3.9  Support for institutions engaged in resear ch for the sustainable development of air 
transport 
1. Period covered by the notification 
 
2013 and 2014.  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 environment (climate, alternative fuels, icing). 
 G/SCM/N/284/EU/Add.10 
- 26 - 
  3. Legal basis 
 
Annual Finance Law. Arrangement approved by the European Commission (No. 395/2010).  
4. Form of the subsidy 
 
Non-repayable subsidy.  
5. Beneficiaries of the aid and allocation mechanism 
 
Mainly ONERA.  
6. Total amount 
 
In 2013: €2.5 million. In 2014: €0. 
 
7. Duration of the subsidy 
 Permanent scheme funded on an annual basis under the Finance Law. 
 
8. Statistical data 
 The entities concerned are non-profit-making. 
 
3.10  Research for innovation and the sust ainable development of air transport 
1. Period covered by the notification 
 
2013 and 2014. 
 2. Policy objective 
 
The overall 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).  
4. Form of the subsidy 
 
Non-repayable subsidy intended to finance part of the cost of several previously selected research operations. 
 
5. Beneficiaries of the aid and allocation mechanism 
 In addition to research inst itutions, around 100 enterprises were involved in 2011 and 2012. 
 
6. Total amount 
 In 2011: €223.7 million. 
In 2012: €106.5 million. 
 G/SCM/N/284/EU/Add.10 
- 27 - 
  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.  3.11  Young Innovative Enterprises (JEI) 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. General policy objective 
 To support young innovative enterprises undertaking R&D projects. 
 
3. Legal basis 
 Article 44 sexies -0 A of the General Taxation Code, deriving from Law No. 2003-1311 of 
30 December 2003, as amended by Article 24 of Finance Law for 2005 No. 2004-1484 of 
30 December 2004, by Article 107 of Amending Finance Law for 2005 No. 2005-1720 of 
30 December 2005, by Article 46 of Amending Finance Law for 2007 No. 2007-1824 of 25 December 2007, by Article 71 of Finance Law for 2008 No. 2007-1822 of 24 December 2007, by Article 37 of Amending Finance Law for 2011 No. 2011-1978, by Article 42 of Ordinance 
No. 2013-676 of 25 July 2013 and by Article 1 of Decree No. 2014-549 of 26 May 2014. 
 Article 44 sexies  A of the CGI, deriving from Law No. 2003-1311 of 30 December 2003, as 
amended by Article 41 of Amending Finance Law for 2004 No. 2004-1485 of 30 December 2004 
and Article 45 of Amending Finance Law for 2007 No. 2007-1824 of 25 December 2007, 
by Article 1 of Decree No. 2012-653 of 4 May 2012, by Article 1 of Decree No. 2014-549 of 26 May 2014, and by Article 53 of Law No. 2014-1545 of 20 December 2014.  
4. Form of the subsidy 
 
Until 31 December 2011, total relief from income tax or corporation tax during the first three years of profitable business, then a reduction of 50% fo r the following two years of profitable business. 
 
As of 1 January 2012, total relief from income tax or corporation tax during the first year of profitable business, then a reduction of 50% for the following year of profitable business.  
Exemption granted to enterprises eligible for JEI status and the related concessions is subject to 
compliance with Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on 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 de minimis aid for concessions granted 
as of 1 January 2014. Decision No. 190/2003 authorized exemption from social charges. 
 5. Beneficiaries of the aid and allocation mechanism 
 
- Beneficiaries : Small and medium-sized enterprise s employing fewer than 250 employees 
and having a turnover of less than €50 million for the financial year or a balance sheet total of less than €43 million, established for less than eight years, at least 50% of whose share capital is directly or indirectly held continuously by natural persons or by certain 
exhaustively listed enterprises involved in the venture capital sector: 
- which incur research and development spen ding representing at least 15% of their 
tax-deductible costs; 
- or which qualify as "young university enterprises" (see below). 
 
- Allocation mechanism : By operation of law. 
 G/SCM/N/284/EU/Add.10 
- 28 - 
  - Conditions : Enterprise not created within the framework of the concentration, 
re-structuring, or extension of pre-existing activities or resumption of such activities. 
 
A "young university enterprise" is an enterprise which meets the payroll number, turnover and capital holding conditions set out above, and: 
 
- is at least 10% owned or managed directly by students, persons holding a master's 
degree or doctoral degree awarded less than five years previously, or persons engaged in teaching or research activities; 
- has as its principal activity the promotion of research work in which the managers or 
partners have participated during their studies or in the performance of their duties, in a higher education establishment entitled to award degrees at master's level at least; 
- has entered into a specific agreement with the higher education establishment. 
 
6. Total amount 
 Total amount for 2013: €13 million 
Total amount for 2014: €13 million. 
 Exemption from social charges: 2011: €106 million. 
2012: €109,533,000 
2013: €116,595,000 2014: Data not yet available.  
7. Duration of the subsidy 
 
Scheme applicable to financial years commencing on or after 1 January 2004.  
For "young university enterprises": scheme applicab le to financial years commencing on or after 1 
January 2009. However by way of exception, th ese measures also apply to financial years 
commencing on or after 1 January 2008 for enterprises which, in 2008, entered into an agreement with a higher education establishment in accordance with the provisions of Decree No. 2008-1560 
of 31 December 2008 on agreements between JEIs  and higher education establishments for the 
application of Article 44 sexies -0 A of the CGI. 
 8. Statistical data 
 Around 550 JEIs benefited from tax exemption in 2013.  4  SECTORAL REGIME 
4.1  Tonnage-based tax scheme 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objective of 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 navigation.  3. Legal basis 
 Article 209-0 B of the General Taxation Code derivi ng from Article 19 of Amending Finance Law for 
2002 No. 2002-1576 of 30 December 2002, as am ended by Article 47 of Amending Finance Law 
for 2005 No. 2005-1720 of 30 December 2005, by Article 80 of Amending Finance Law for 2006 
No. 2006-1771 of 30 December 2006, and by Article 75 of Amending Finance Law for 2014 
No. 2014-1655 of 29 December 2014.  G/SCM/N/284/EU/Add.10 
- 29 - 
  4. Form of assistance 
 
Under this arrangement, the tax due as a result of operations directly linked to the use of certain 
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 appropriate, 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 enterprise 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 European Union 
or the European Economic Area amounts to at least 25% at the date of commencement of 
the first period of implementation of the sch eme and if, during the scheme's implementation 
period, the enterprise undertakes to maintain or increase the percentage 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 than 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-compliance with the underta king to maintain or increase the percentage 
carried by EU- or EEA-flagged ships, and subjec t 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, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Total amount: 
 
In 2013: €15 million. In 2014: Estimate not yet available.  
7. Duration of the subsidy and/or any other time-limits attached to it 
 
This scheme has been in effect since 1 January 2003.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
None.  
4.2  National ultrafast broadband programme (Part B) 
1. Period covered by the notification 
 
2013 and 2014. 
 
2. Policy objective of aid scheme 
 Roll-out of the new generation ultrafast broadband networks (NGA networks) throughout the 
national territory, and especially outside densely populated areas. 
 G/SCM/N/284/EU/Add.10 
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  3. Legal basis 
 
Arrangement No. 330/2010 approved by the European Commission on 19 October 2011.  4. Form of assistance 
 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 allocation 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, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
 
Amount in 2013 and 2014: €0. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
This arrangement applies until 31 December 2013. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Verification that the amount offset is neither under- nor over-evaluated in respect of market 
prices.  
__________