G/SCM/N/253/EU/Add.9  
1 August 2013  
(13-4136)  Page: 1/35  
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/253/EU/Add.9 
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  TABLE OF CONTENTS 
 
1   SME SCHEMES ............................................................................................................. 4  
1.1   Regional Premium for the Cr eation of Enterp rises (PRCE) ................................................ 4  
1.2   Regional Employment Premium (PRE) ........................................................................... 5  
1.3   Industrial Rede velopment Aid (ARI) ............................................................................. 6  
2   REGIONAL SCHEMES ................................................................................................... 6  
2.1   Metropolit an Fran ce ................................................................................................... 6  
2.1.1   Tax reduction for new ente rprises ............................................................................. 6  
2.1.2   Tax reduction for enterprises lo cated in rural revita lization areas ................................... 8  
2.1.3   Land-Use Manage ment Premiu m (PAT) ...................................................................... 9  
2.2   Corsica ................................................................................................................. .. 10 
2.2.1   Exemption, subject to approval, from  corporation tax on profits resulting from 
new activities crea ted in Corsica ........................................................................................ 10 
2.2.2   Tax exemption for profits realized by enterprises set up in Corsica in the crafts, 
industrial, hotel, construction and public works sectors .......................................................... 11 
2.2.3   Profits tax exemption for industrial, commercial, crafts and agricultural enterprises 
operating in Corsica on 1 January 1997 or which establish operations there between this 
date and 31 December 2001 ( Zone franche Corse ) ............................................................... 11 
2.2.4   Tax credit for certain invest ments made and expl oited in Corsica .................................. 12 
2.3   French Overseas  Department s (FOD) .......................................................................... 13 
2.3.1   Long-term tax treatment in  French Overseas  Departments .......................................... 13 
2.3.2   VAT deduction for ce rtain exempted  products ............................................................ 14 
2.3.3   Deduction of investments in French Overseas Departments and Territories ..................... 15 
2.3.4   Temporary exemption, subject to approval, from corporation tax for the creation 
of activities in French  Overseas De partments ....................................................................... 17 
2.3.5   Reduced taxation of profits from operations in French Overseas Departments ................. 18 
2.3.6   Tax reduction for profits from operations in Overseas France ........................................ 19 
2.3.7   Freight support in the Overseas Departments ............................................................ 20 
2.4   Urban areas in difficulty ............................................................................................. 21 
2.4.1   Measures on behalf  of Urban Free Zones (Z FU) .......................................................... 21 
3   R&D SC HEMES ........................................................................................................... 23  
3.1   Tax credit to  promote re search ................................................................................... 23 
3.2   National Rese arch Agency  (ANR) ................................................................................ 24 
3.3   Technology research institutes (IRT) and institutes of excellence in the field 
of carbon-free energy (IEED) ............................................................................................. 25 
3.4   Fund for Enterprise Competitiveness (FCE) ................................................................... 26 
3.5   OSEO Innovation Aid Scheme for Re search, Development an d Innovation  (RDI) ................ 27 
3.6   Industrial Innovation Agency Aid for Industrial Innovation Promotion Programmes 
(PMII) ........................................................................................................................ .... 28 
3.7   Aid for innovation in the shipbuilding industry ............................................................... 30 
3.8   Aid for innovation in the digital sect or and aid for shared innovation platforms .................. 30 G/SCM/N/253/EU/Add.9 
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  3.9   Support for institutions engaged in research for the sustainable development 
of air tr anspor t .............................................................................................................. .. 31 
3.10   Research for innovation and the su stainable development of air tr ansport ....................... 32 
3.11   Young Innovative Enterprises (JEI) ............................................................................ 32 
4   SECTORAL  REGIME .................................................................................................... 34  
4.1   Tonnage-Bas ed Tax Scheme ...................................................................................... 34 
4.2   National ultrafast br oadband programme (Part B) ......................................................... 35 
 G/SCM/N/253/EU/Add.9 
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  1  SME SCHEMES 
1.1  Regional Premium for the Cr eation of Enterprises (PRCE) 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective of aid scheme 
 
Job creation and economic development. 
 3. Legal basis 
 
Article L.1511-2 of the General Code on Local Authorities (CGCT). 
 4. Form of the aid 
 
Business grant with a ceiling of €25,000, but which may be increased to €35,000 in priority areas 
defined by decision of the Regional Council.  5. Beneficiaries of the aid and allocation mechanism 
 Beneficiaries 
Enterprises created less than 12 months prior to submission of the application.  
Allocation mechanism 
The premium is paid directly to the enterprises by the local authorities and in particular the 
regions, which are responsible for the implementation of this scheme.  
Conditions 
Enterprises must undertake to create a minimum number of permanent jobs by recruiting persons 
linked to the enterprise by open-ended employment contracts.  
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) 
 
2011: €3,381,294 (amount declared by all the local authorities having submitted their annual 
reports on State aid expenditure in 2011). 
 
2012: Amount not available; the local authorities'  annual reports on State aid expenditure in 2012 
to be submitted at the end of June, pursuant to  the provisions of Article L.1511-1 of the CGCT. 
 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
Provision applicable indefinitely.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
No precise data can be provided. However, since the total amount of aid granted annually and the maximum amount of aid that can be granted to  each enterprise are low, the scheme has no 
significant impact on trade. 
 G/SCM/N/253/EU/Add.9 
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  1.2  Regional Employment Premium (PRE) 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. Policy objective of aid scheme 
  Job creation and economic development. 
 
3. Legal basis 
 Article L.1511-2 of the General Code on Local Authorities. 
 
4. Form of the aid 
 Business grant with a ceiling of €11,000 per job over three years, up to a total annual amount 
of €160,000 per enterprise. 
 5. Beneficiaries of the aid and allocation mechanism 
 Beneficiaries 
Small and medium-sized enterprises, with the exception of those operating in the following 
sectors: the coal industry, transport, iron and steel industry, shipbuilding, synthetic fibres, automotive industry and financial services.  
Allocation mechanism 
The premium is paid directly to the enterprises by the local authorities and in particular 
the regions, which are responsible for the implementation of this scheme. 
 
Conditions 
As a general rule (job creation as the result of th e recruitment of a person linked to the enterprise 
by an open-ended employment contract), th e aid amounts to a maximum of 20% of gross 
earnings, subject to the payment of social security contributions for the new employee 
for three years. 
 The enterprise must create one or more jobs, unrelated to any new investment, and not have dismissed or made redundant any staff in the 12 months prior to submitting the application. 
 
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) 
 
2011: €4,270,094 (amount declared by all the local authorities having submitted their annual 
reports on State aid expenditure in 2011).  2012: Amount not available; the local authorities'  annual reports on State aid expenditure in 2012 
to be submitted at the end of June, pursuant to  the provisions of Article L.1511-1 of the CGCT. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
Ten years from 2000. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
  
No precise data can be provided. However, since the total amount of aid granted annually and the 
maximum amount of aid that can be granted to  each enterprise are low, the scheme has no 
significant impact on trade.  G/SCM/N/253/EU/Add.9 
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  1.3  Industrial Redevelopment Aid (ARI) 
1. Period covered by the notification 
 
2011 and 2012. 
 
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 2011: 
 Amount for 2012: 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme applies until 31 December 2013. 
 
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 
 
2011 and 2012. 
 G/SCM/N/253/EU/Add.9 
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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 December 2003 amended by Article 87 of the 
Amending Finance Law for 2006 No. 2006-1771 of 30 December 2006, by Article 45 of the Amending Finance Law for 2007 No. 2007-1824 of 25 December 2007, by Article 62 of the Amending Finance Law for 2009 No. 2009-1674 of 30 December 2009, and by Articles 108 
and 129 of Finance Law for 2011 No. 2010-1657 of 29 December 2010. 
 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 profits 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 until 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 th e 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 as of 1 January 2007, eligibility for the benefit is subject to compliance with Commission Regulation (EC) No. 1998/2006 of 15 December 2006 
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 ac tivities), 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 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 exerci sing 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 (a bove this threshold, 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 2011: €100 million (€100 million in 2012). 
Average subsidy per unit: around €3,106 in 2011.  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 until 31 December 2013. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 Around 32,200 beneficiaries in 2011. G/SCM/N/253/EU/Add.9 
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2.1.2  Tax reduction for enterprises located 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 
 
2012. 
 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.  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 compliance with Commission Regulation (EC) No. 1998/2006 of 15 December 2006 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) : 
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 threshold, 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 2012: €4 million.  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 2013.  G/SCM/N/253/EU/Add.9 
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  2.1.3  Land-Use Management Premium (PAT) 
1. Period covered by the notification 
 
2011 and 2012. 
 
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, deve lopment and innovation activities throughout 
the territory.  3. Legal basis (reference, date) 
 The current scheme is 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. 
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 : Enterprises whose sector of activity is listed in Annex 2 of the Order 
of 3 March 2010, i.e. mainly the manufactur ing industry, waste management and wholesale 
trade and certain services. 
 
- Allocation mechanism : Decision by the Minister for Town and Country Planning. 
 - Conditions : 
 
Industry and services PAT 
 Three categories of projects are eligible: 
 creation of activities: 
o where the enterprise invests at least €5 million and creates 25 jobs;  
or 
o where the enterprise creates at least 50 jobs; 
 extensions: 
o where 25 jobs are created and this represents  an increase of more than 50% of the 
company's workforce;  
or 
o where at least 50 jobs are created;  
or 
o where the enterprise's eligible investment amounts to €10 million; 
 takeovers of sites which are in difficulty, leadin g to the takeover of at least 80 jobs and the 
investment of at least €5 million.  
 G/SCM/N/253/EU/Add.9 
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  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.  
6. Total annual amount 
 
2011: €38 million. 2012: €34 million. 
 
7. Duration of the subsidy and/or any other time-limits attached to it 
 General scheme valid until 31 December 2013. 
 
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
 2011 2012 
Number of assisted jobs created or maintained 12,880 10,820 
Productive investments assisted €837 million  €773 million  
Assisted R&D and innovation expenditure €143 million €65 million 
 
2.2  Corsica 
2.2.1  Exemption, subject to approval, from  corporation tax on profits resulting from 
new activities created in Corsica 
1. Period covered by the notification 
 
2011. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote job creation and economic development in Corsica. 
 3. Legal basis (reference, date) 
 
Article 208 quater  A of the General Taxation Code, deriving from Article 88 of Law No. 90-1168 
of 29 December 1990, amended by Article 4-I of Law No. 94-1131 of 27 December 1994.  4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Tax concession. Exemption from profits tax for a period of 96 months.  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Companies subject to corporation tax on new activities launched in Corsica before 1 January 1999 in the industrial, crafts, construction and agricultural sectors. 
 
- Allocation mechanism : Approval. 
 - Conditions : Subject to approval. 
 
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) 
 
None. Budgetary impact ended in 2011. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 Eight years. The scheme closed on 1 January 1999. G/SCM/N/253/EU/Add.9 
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8. Statistical data permitting an assessment of the trade effects of the subsidy 
 This measure no longer has any effects.  
2.2.2  Tax exemption for profits realized by enterprises set up in Corsica in the crafts, 
industrial, hotel, construction and public works sectors 
1. Period covered by the notification 
 
None.  2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 To encourage the creation of new enterprises in Corsica.  3. Legal basis (reference, date) 
 Article 208 sexies  of the General Taxation Code, deriving from Article 22 of Law No. 87-1061 
of 30 December 1987, last amended by Article 4-II and -III of Law No. 94-1131 of 27 December 1994. 
 
4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
  Tax concession. Exemption from profits tax for a period of 96 months. 
 
5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 - Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
Companies subject to corporation tax and established in Corsica before 1 January 1999. 
 - Allocation mechanism : By operation of law. 
 
- Conditions : The enterprises must conduct all their business in Corsica. 
 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) 
 
None. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
Eight years. The scheme closed on 1 January 1999. 
 8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
This measure no longer has any effects. 
 2.2.3  Profits tax exemption for industri al, commercial, crafts and agricultural 
enterprises operating in Corsica on 1 Janua ry 1997 or which establish operations there 
between this date and 31 December 2001 ( Zone franche Corse ) 
1. Period covered by the notification 
 
2011. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To promote the creation and maintenance of operations in Corsica. 
 G/SCM/N/253/EU/Add.9 
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  3. Legal basis (reference, date) 
 
Article 44 decies  of the General Taxation Code, derivi ng from Article 1 of Law No. 96-1143 
of 26 December 1996 and amended by Article 1 of Law No. 98-1266 of 30 December 1998, by Article 33 I 1º a and b of Law No. 2003-721 of 1 August 2003, by Article 45 of the Amending 
Finance Law for 2007 No. 2007-1824 of 25 December 2007 and by Article 108 of the Finance Law 
for 2010 No. 2010-1673 of 30 December 2009.  4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Tax concession. Reduction on taxable profits up to a ceiling of €61,000 per 12-month period. Reduction of 100% for the first sixty months of op eration, then 80%, 60%, 40% and 20% for each 
of the four subsequent 12-month periods. 
 
The profits exempted may not exceed €61,000 per 12-month period, and eligibility for 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. 
 
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 crafts enterprises and, under certain conditions, companies 
engaged in non-commercial activities and agricultural enterprises, for their new or existing activities established in Corsica. 
 
- Allocation mechanism : By operation of law. 
 - Conditions : Enterprises must possess operating resources in Corsica enabling them to 
conduct their operations there autonomously. 
 
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) 
 
Insignificant budgetary impact in 2011. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
Five years (+ four years of degressive reduct ion). As this subsidy has not been extended, 
the scheme closed with effect from 1 January 2011.  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 This scheme no longer has any trade effects.  2.2.4  Tax credit for certain invest ments made and exploited in Corsica 
1. Period covered by the notification 
 
2011 and 2012.  
2. General 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 the Amended Finance Law for 2011 No. 2011-1978 of 28 December 2011 
and Article 32 of the Amended Finance Law for 2012 No. 2012-1510 of 29 December 2012.  G/SCM/N/253/EU/Add.9 
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  4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 
Tax concession. Tax credit equivalent to 20% of pre-tax investment costs.  Note: For investments made as of 1 January 2015, the tax credit rate will be set at 10%. 
 
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 established 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 the vast majority of innovating enterprise s and SMEs covered by Community regulations, 
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 2011 and 2012:  €34 million in 2011 and €45 million in 2012. 
 Number of beneficiaries in 2011: 3,515 enterprises. 
 Average amount of the subsidy per unit in 2011: around €9,700. 
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 2016.  
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 
 
2011 and 2012. 
 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) 
 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.  G/SCM/N/253/EU/Add.9 
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  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 2011 and 2012: 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 ce rtain exempted products 
1. Period covered by the notification 
 
2011 and 2012.  
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) 
 
Article 295 A of the General Taxation Code (CGI) deriving from Article 30 I 2° 
of Law No. 2009-594 of 27 May 2009 on French Overseas economic development.  G/SCM/N/253/EU/Add.9 
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  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 accordance 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 established in the Overseas Departments of Guadeloupe, Martinique and Reunion and engaged in activities there which are eligible for the deduction 
by application of Article 271 of the CGI. 
 - Allocation mechanism : Deduction of VAT. 
 
- Conditions : The deduction of uncollected VAT takes place following the import or purchase 
of exempted new capital goods. 
 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 2011: €100 million (fiscal expenditure). 
 Total amount for 2012: €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  Deduction of investments in Frenc h Overseas Departments and Territories 
1. Period covered by the notification 
 
2011 and 2012. 
 
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) 
 Initially codified under Articles 238 bis HA and 238 bis HC of the General Taxation Code, deriving 
from Article 22 of Finance Law No. 86-824 of 11 July 1986, this scheme, which has been amended 
several times, is now codified under Articles 199 undecies  B, 217 undecies  and 217 duodecies  
of the Code.  
 This scheme was established under the Finance Law for 2009 No. 2008-1425 
of 27 December 2008 and Law No. 2009-594 of 27 May 2009 on the economic development of Overseas France.  
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. 
 G/SCM/N/253/EU/Add.9 
- 16 - 
  5. Beneficiaries of the aid and allocation mechanism (calculation method and conditions) 
 
- Beneficiaries (who receives the subsidy, the producer, the exporter, other) : 
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 overseas 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, recreational 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 real estate activities; the cruise industry, car repair, rental/leasing services without operators
2; 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 2011: €875 million and for 2012: €660 million, it being understood that 
these amounts were disbursed pursuant to both Articles 199 undecies  B and 217 undecies  
of the General Taxation Code and that a sign ificant proportion of the fiscal expenditure 
relating to the arrangement under Article 217 undecies  of the General Taxation Code relates 
to the construction of welfare housing. 
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 the subsidy 
 
Amounts disbursed for applications approved in 2011: 
 - Article 199 undecies  B: €241 million. 
- Article 217 undecies : €441 million. 
 
                                               
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  chance or gambling and, on the other hand, of 
audio-visual and cinematographi c production and broadcasting ; and associative activities. G/SCM/N/253/EU/Add.9 
- 17 - 
  Amounts disbursed for applications approved in 2012: 
 - Article 199 undecies  B: €202 million. 
- Article 217 undecies : €353 million. 
 
2.3.4  Temporary exemption, subject to appr oval, from corporation tax for the creation 
of activities in French Overseas Departments 
1. Period covered by the notification 
 
2011 and 2012.  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, th e hotel trade, tourism with the exception 
of the cruise industry, fisheries, alternativ e sources of energy, construction and public 
works, transport, crafts, computer services, audio-visual 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 2011: €0, and for 2012: €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. 
 The subsidy has not been extended.  
8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
No authorization issued since 2005.  G/SCM/N/253/EU/Add.9 
- 18 - 
  2.3.5  Reduced taxation of profits from operations in French Overseas Departments 
1. Period covered by the notification 
 
2011. 
 
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 217 bis of the General Taxation Code, deriving from Article 40-I of Law No. 65-566 
of 12 July 1965, as last amended by Article 87 of Law No. 2001-1275 of 28 December 2001. 
 This scheme was established under Law No. 2009-594 of 27 May 2009 on the economic development of Overseas France. 
 
It 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. 
 4. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
 Tax concession. One-third reduction of profits or losses resulting from operations conducted in the Overseas Departments.  
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 corporation tax and conducting an activity in certain sectors in the 
Overseas Departments. 
 - Allocation mechanism : By operation of law. 
 
- Conditions : Enterprises engaged in agricultural, industrial, commercial or crafts activities 
outside the following sectors: trade; cafés, tobacconists and bars/public houses, as well as catering
5; 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 operators6; business services7; leisure, sporting and cultural 
activities8; associative activities; and postal services. 
 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 2011: €185 million.  
7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme is applicable to accounting periods closed before 31 December 2011.  
                                               
5 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. 
6 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. 
7 With the exception of maintenance, cleaning , packaging on a toll basis and call centres. 
8 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 game s of chance or gambling and, on the other hand, 
of audio-visual and cinematograp hic production and broadcasting. G/SCM/N/253/EU/Add.9 
- 19 - 
  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Not available.  2.3.6  Tax reduction for profits from  operations in Overseas France 
1. Period covered by the notification 
 
2011 and 2012. 
 
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. 
 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 Guadeloupe, Guyana, Martinique and Reunion. 
 
- Allocation mechanism : Upon option. 
 - Conditions : Enterprises operating in Guadeloupe, Guyana, Martinique and Reunion 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 euros; 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. 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 2011: €72 million,  for 2012: €74 million.  
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.  G/SCM/N/253/EU/Add.9 
- 20 - 
  2.3.7  Freight support in the Overseas Departments 
1. Period covered by the notification 
 
2011 and 2012. 
 
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 ec onomic 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 Wallis 
and Futuna.  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. 
 
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) 
 
2011: €29 million. 
2012: €29 million. 
 7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme is in effect until 31 December 2013. 
 G/SCM/N/253/EU/Add.9 
- 21 - 
  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 (ZFU) 
1. Period covered by the notification 
 
2011 and 2012. 
 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. 
 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" ZFUs on 1 January 1997) and exte nded by Law No. 2002-1576 
of 30 December 2002. 
 
Measures extended to 41 new ("second-generation") ZFUs provided for by Law No. 2003-710 of 1 August 2003 on town planning and urban renewal (enterprises established in ZFUs on 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 the Amending Finance Law for 2003 No. 2003-1312 of 30 December 2003. 
 
The measures created by Article 44 octies  A deriving from the afor ementioned Law No. 2006-396 
("third-generation" ZFUs) 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, as amended 
by Article 157 of Finance Law for 2012 No. 2011-1977 of 20 December 2011, is applicable to activities created between 1 January 2006 and 31 December 2014 in all ZFUs. These measures are 
also applicable, within the limits of the old de minimis regulation, to activities already engaged 
in before 1 January 2006 in the new ZFUs established by the Law on equal opportunities. Activities 
created in "first generation" and "second gene ration" ZFUs between 1 January and 2 April 2006 
may be placed under Article 44 octies  or 44 octies A. 
 Updating of references within Article 44 octies  and Article 44 octies  A (in Article 45 of the Amending 
Finance Law for 2007 No. 2007-1824 of 25 December 2007, Article 2 of the Finance Law for 2010 
No. 2009-1673 of 30 December 2009, and Articles 108 and 129 of the Finance Law for 2011 No. 2010-1657 of 29 December 2010).  
4. Form of the subsidy (grant, loan, tax concession, etc.) 
 
Article 44 octies : 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 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" ZFUs, 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  a i d .  A s  r e g a r d s  t a x p a y e r s  e n g a g i n g  i n  o r  c r e a t i n g  a n  a c t i v i t y  i n  o n e  o f  t h e  
"second generation" ZFUs before 1 January 2004 or eligibility for the benefits granted 
after 1 January 2007, exemption is granted subj ect to compliance with the aforementioned 
regulation. G/SCM/N/253/EU/Add.9 
- 22 - 
   
Article 44 octies  A: 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 en terprise employs five or more employees. 
 
Exempt profits cannot 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 ZFU and is employed full-time for a period of at least six months. For taxpayers engaged in activities before 1 January 2006 or having created an activity since 1 January 2012 
in the "third generation" ZFUs, exemption is granted 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. 
 
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 ZFUs. 
 - Allocation mechanism : By operation of law. 
 
- Conditions : Enterprises must carry out an actual activity in a ZFU 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 but carried out entirely or partially outside of that zone, the activity is assumed to be carried out within a ZFU when at least 
one sedentary full-time employee carries out his/her work within the premises located 
in a ZFU set aside for the activity, or when the enterprise realizes at least 25% of its turnover through clients located in the ZFU. 
 
 As for the 41 "second-generation" ZFUs, new conditions have 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. 
  These conditions also apply to the new "third-generation" ZFUs created 
by Law No. 2006-396 of 31 March 2006. 
  A new condition has been established for enterprises with at least one employee that have 
set up activities in a ZFU as of 1 January 2012: Article 44 octies  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. 
 
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 2011: €215 million (amount for 2012: €215 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 publicatio n 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.  G/SCM/N/253/EU/Add.9 
- 23 - 
  8. Statistical data permitting an assessment of the trade effects of the subsidy 
 
Around 23,800 beneficiaries in 2011.  3  R&D SCHEMES 
3.1  Tax credit to promote research 
1. Period covered by the notification 
 
2011 and 2012. 
 2. General policy objective and/or purpose of the subsidy (or aid scheme) 
 
To encourage research activity 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 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. 
 
 Tax credit equivalent to 30% of research expenditure for the calendar year up to a ceiling 
of €100,000,000; reduced to 5% for the port ion of research expenditure exceeding 
this ceiling. 
 
 The tax credit is 40% the first year and 35% the second for enterprises receiving the tax 
credit for the first time and for those that have not benefited from it fo r the past five years, 
subject to a series of conditions, in particular there must be no dependent relationship within the meaning of Article 39.12 of the Gene ral Taxation Code with any enterprise that 
has benefited from the tax credit over the same five-year period. 
  Note: the 40% and 35% rates have been abolished for tax credit calculated in respect 
of expenditure as of 1 January 2013 (Article 71 of the Finance Law for 2013 No. 2012-1509 
of 29 December 2012). 
  As regards collection expenditure, in pr inciple the maximum tax credit for research 
is €200,000 over a period of three financial years, in accordance with the de minimis  rule 
in Commission Regulation No. 1998/2006 of 15 December 2006. 
 - 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 2011: €3,070 million and for 2012: €2,850 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. G/SCM/N/253/EU/Add.9 
- 24 - 
   
For certain categories of enterprises (new enterprises, failing enterprises, young innovative enterprises, SMEs within the meaning of Comm unity 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 
 
2011 and 2012.  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.  
Regulations of 20 December 2007 relating to the procedures for the allocation of aid by the ANR 
(applicable to calls for projects issued between 2008 and 2012).  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 (Article 8.2(a)) and representing a maximum 
of 50% of the total cost of the programme fo r enterprises. 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 enterprises, but to support research projects. Forty-one 
calls for projects, 1' of which were open to international bidders, were launched in 2011. Forty-nine calls for projects, 15 of which were open to international bidders, were launched 
in 2012. 
 
In 2011 and 2012, 8.4% and 8.6% of the grants we nt to enterprises and around 52% to public 
research institutions. Overall, some 85% of the grants go to public enterprises (research institutions, universities, engineering schools, etc.). G/SCM/N/253/EU/Add.9 
- 25 - 
   
The distribution of grants by type of beneficiar y 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 the ANR's calls for projects since 2005:  
2011 : €557 million, including 48.1 million allocated to enterprises. 
2012 : €555.6 million, including 46.6 milli on 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 upstre am 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 Agreemen t. The aid is notified strictly in the interests 
of transparency.  3.3  Technology research institutes (IRT) and institutes of excellence in the field 
of carbon-free energy (IEED) 
1. Period covered by the notification 
 
2012. 
 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.  
The purpose of the subsidy is to fund training and R&D activities, as well as feasibility studies 
conducted by IRTs and IEEDs. It is also designed to cover costs associated with intellectual property rights where the IRTs or IEEDs come under the definition of SMEs given in Annex 1 of Commission Regulation (EC) No. 800/2008. 
 
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 IEEDs 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 implem entation of R&D projects by IRTs and IEEDs, 
either individually or jointly with public and private partners. 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 (EC) No. 800/2008. G/SCM/N/253/EU/Add.9 
- 26 - 
   
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 2012: €56.7 million. 
 
7. Duration of the subsidy and/or any other time-limits attached to it 
 End of subsidies for IRT and IEED 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 
 
2011 and 2012.  
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) 
 
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. G/SCM/N/253/EU/Add.9 
- 27 - 
   
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 
 
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 Re search, Development and Innovation (RDI) 
1. Period covered by the notification 
 
2011 and 2012. 
 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 Articles 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 . 
 G/SCM/N/253/EU/Add.9 
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  - 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  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 Industrial Innovation Promotion Programmes 
(PMII) 
1. Period covered by the notification 
 
2011 and 2012. 
 
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.  G/SCM/N/253/EU/Add.9 
- 29 - 
  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 subsid y, 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  2012: €184,487,000  
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. 
 G/SCM/N/253/EU/Add.9 
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  3.7  Aid for innovation in the shipbuilding industry 
1. Period covered by the notification 
 
2012. 
 
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 design 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 : 2012: €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. 
 3.8  Aid for innovation in the digital sect or and aid for shared innovation platforms 
1. Period covered by the notification 
 
2012.  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. 
 G/SCM/N/253/EU/Add.9 
- 31 - 
  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 and 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. 
 
7. Duration of the subsidy and/or any other time-limits attached to it 
 
The scheme will expire on 31 December 2013.  
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 prio r verification, based on a comparison between 
its positive and negative effects, of th e absence of distortion of competition. 
 3.9  Support for institutions engaged in research for the sustainable development 
of air transport 
1. Period covered by the notification 
 
2011 and 2012. 
 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).  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 2011: €4.8 million. In 2012: €3.1 million. 
 
7. Duration of the subsidy 
 Permanent scheme funded on an annual basis under the Finance Law. 
 G/SCM/N/253/EU/Add.9 
- 32 - 
  8. Statistical data 
 
The entities concerned are non-profit-making.  3.10  Research for innovation and the su stainable development of air transport 
1. Period covered by the notification 
 
2011 and 2012. 
 
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: €107.3 million. In 2012: €358.3 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.  
3.11  Young Innovative Enterprises (JEI) 
1. Period covered by the notification 
 
2011 and 2012. 
 
2. General policy objective 
 To support young innovative enterprises undertaking R&D projects. 
 G/SCM/N/253/EU/Add.9 
- 33 - 
  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 the Finance Law for 2005 No. 2004-1484 of 30 December 2004, by Article 107 of the Amending Finance Law for 2005 No. 2005-1720 
of 30 December 2005, by Article 46 of the Amending Finance Law for 2007 No. 2007-1824 
of 25 December 2007, by Article 71 of the Finance Law for 2008 No. 2007-1822 of 24 December 2007, and by Article 37 of the Amending Finance Law for 2011 No. 2011-1978.  
Article 44 sexies  A, deriving from Law No. 2003-1311 of 30 December 2003, as amended 
by Article 41 of the Amending Finance Law for 2004 No. 2004-1485 of 30 December 2004 and Article 45 of the Amending Finance Law for 2007 No. 2007-1824 of 25 December 2007.  
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 advantages is subject 
to compliance with Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on de minimis  aid. Commission Decision No. 190/2003 authorized exemption from social charges. 
 
5. Beneficiaries of the aid and allocation mechanism 
 
- Beneficiaries : Small and medium-sized enterprises 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. 
 
- 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 en titled 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 2011: €18 million, and for 2012: €18 million.  
Exemption from social charges: 
2011: €106 million. 2012: €109,533,000.  G/SCM/N/253/EU/Add.9 
- 34 - 
  7. Duration of the subsidy 
 
- Scheme applicable to financial years commencing on or after 1 January 2004.  - For "young university enterprises": scheme applicable to financial years commencing 
on or after 1 January 2009. However by way of exception, these 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 young 
innovative enterprises and higher education establishments for the application 
of Article 44 sexies -0 A of the General Taxation Code. 
 8. Statistical data 
 Around 2,810 beneficiaries in 2011.  4  SECTORAL REGIME 
4.1  Tonnage-Based Tax Scheme 
1. Period covered by the notification 
 
2011 and 2012. 
 2. Policy objective of aid scheme 
 
To enable enterprises operating in maritime transport to meet international competition, safeguard 
Community jobs, preserve maritime know-how an d maintain high safety levels with regard 
to ships and navigation.  
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, amende d by Article 47 of Amending Finance Law 
for 2005 No. 2005-1720 of 30 December 2005, and by Article 80 of Amending Finance Law 
for 2006 No. 2006-1771 of 30 December 2006.  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 enterprise 
undertakes to maintain or increase, during the scheme's implementation period, the proportion of net tonnage it operated under the flag of an EU member State at the date of 
commencement of the first year of implementation of the scheme. 
 In the event of non-compliance with this undertaking, and subject to exceptions, vessels not sailing under the flag of an EU member State whose tonnage has reduced the proportion of net 
tonnage under the flag of an EU member State are not eligible for the tonnage-based tax scheme. 
 G/SCM/N/253/EU/Add.9 
- 35 - 
  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 2011: €150 million. 
In 2012: €30 million.  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 
 
2011 and 2012.  
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. 
 
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 2012: €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 
 
V e r i f i c a t i o n  t h a t  t h e  a m o u n t  o f f s e t  i s  n e ither under- nor over-evaluated in respect 
of market prices. 
 
__________