#2026-421France Sets Poverty Criteria for Enhanced Tax Relief in Certain Réunion Communes
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The decree defines which areas in La Réunion qualify as particularly disadvantaged for access to an enhanced tax allowance under France’s tax code. An intermunicipal authority is considered particularly disadvantaged when more than 40% of its population has disposable income below 60% of the median disposable income, based on 2021 INSEE data. The decree also lists the eligible communes: Bras-Panon, La Plaine-des-Palmistes, Saint-André, Saint-Benoît, Sainte-Rose and Salazie. Businesses or establishments seeking the enhanced tax benefit in these areas should check whether they meet the wider conditions of the relevant tax regime.
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Key Changes
- Defines a poverty-rate threshold of more than 40% for identifying particularly disadvantaged intermunicipal areas
- Uses INSEE 2021 data and a 60% of median disposable income measure to calculate the poverty rate
- Lists six communes in La Réunion eligible for the enhanced tax allowance
Obligations
What this law requires
For purposes of applying the enhanced tax allowance under Article 44 quaterdecies III 2° of the French General Tax Code, treat an intermunicipal public cooperation establishment as particularly disadvantaged only if its poverty rate is greater than 40%.
When assessing the poverty-rate condition for the enhanced tax allowance, calculate the poverty rate as the share of the intermunicipal population whose disposable income is below 60% of median disposable income, using INSEE data available for 2021.
For the enhanced tax allowance covered by Article 44 quaterdecies III 2°, apply commune eligibility only to Bras-Panon, La Plaine-des-Palmistes, Saint-André, Saint-Benoît, Sainte-Rose, and Salazie in La Réunion.