The de minimis regulation

The de minimis regulation authorises (with the exception of certain sectors such as fisheries) tax relief, which is assessed in terms of tax benefits. The total amount does not exceed €200 000 over a “rolling” period of three tax years. This ceiling applies regardless of the form and purpose of the relief.

In addition to the ceiling criterion, the aid must comply with other criteria, including:

– Prohibition of aid splitting for the assessment of compliance with the maximum authorised ceiling;

– There must be transparency, in that it must be possible to determine the precise amount before it is granted.

– No cumulation with other state aid for the same eligible expenditure if such cumulation leads to an “aid intensity” which exceeds the level set either by the exemption regulation on the basis of which the state aid is granted or by the Commission decision authorising the scheme.

Compliance with these rules is assessed on the date on which each relief is granted, by adding up all the de minimis aid (even if financed from Community resources) granted during the tax year concerned and the two previous tax years.

If the total amount of aid granted exceeds the ceiling, only the excess amount is taken back.

It should be noted that some aid measures are not covered by the scheme, including the research tax credit (CIR) and innovation tax credit (CII) and the URSSAF exemptions for the Young Innovative Company (JEI) status.

 

For more information on this rule, please email our team [email protected]