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Taxation
Innovative young companies: what is new on 1 January 2024?
Publié le 11 janvier 2024 - Directorate for Legal and Administrative Information (Prime Minister)
Young innovative companies have been subject to new rules since 1er january 2024 following the 2024 budget. Thus, the new status of a young growth company has been created.
Creation of the Young Growth company (JEC) status
Young growth companies (JECs) are defined in the 2024 budget as companies with research expenditure of between 5% and 15% of their charges.
Like young innovative companies, JECs are exempt from property contributions for companies and from taxation on built properties.
These companies must meet economic performance indicators to be specified by decree.
To be a young growth company, the following conditions must be met:
- be an SME: it must employ less than 250 people and carry out a turnover less than € 50 million or must have a total balance sheet less than € 43 million ;
- have been created since under 8 years to benefit from social and tax exemptions (the company permanently loses the status of JEI in the year of its 8e birthday);
- have capital held for 50% at least by the following persons or entities:
- natural person: individual entrepreneur (EI), individual;
- other JEI owned at least 50 % by natural persons;
- investment business;
- association or foundation recognized as being of public interest of a scientific nature;
- public research and teaching establishment or one of its subsidiaries.
- exercise a new activity : the company was not set up as part of a merger, restructuring, extension or takeover of existing activities