Aide aux Créateurs et Repreneurs d'Entreprise (ACRE) was created in 2007 to encourage economic growth and the creation and takeover of businesses. In concrete terms, it provides a one-year exemption from social security contributions, while allowing certain minimum social benefits to be maintained. It now benefits a wide range of companies, whatever their status, as well as micro-entrepreneurs.
Since January 1, 2019, it has concerned almost all business start-ups or takeovers in France.
From January1, 2020, the scheme will be scaled back, and will only apply to the first year of business for all new entrepreneurs. What are the practical consequences of this new measure?
Let's find out what's changing for ACRE in 2020.
As of January1, 2019, any business creator or entrepreneur could benefit from ACRE. It is now possible to benefit as self-employed (farm worker or not), or through a company. Generally speaking, all entrepreneurs benefited from this socially and fiscally advantageous scheme. But beware, this will soon come to an end due to the new ministerial decree promulgated in November 2019.
Renamed "Exonération de début d'activité", ACRE is divided into two branches:
- Tax exemptions for business income below the PASS threshold (€40,524 in 2019)
- Provisions relating to support for business start-ups and takeovers. No changes have been made to this part of the scheme, and the list of beneficiaries and the benefits granted remain unchanged.
It is not possible to combine the ACRE with any other reduction or allowance applicable to social security contributions, with the exception of reductions in the rates of family allowance, sickness and maternity insurance contributions.
2020 will be a year of upheaval for ACRE beneficiaries!
The decree, which comes into force on January 1, 2020, provides for a number of changes. First of all, it provides for a reduction in the contribution relief to 1 year (instead of 3 years at present), with a rate of 50% (instead of 75% at present). A reduction in the exemption rate for autoentreprises already created, from 50% to 25% in the second year, and from 25% to 10% in the third year.
Secondly, its scope of application has been reduced to that initially applied when the scheme was launched. Whereas since January 1, 2019, any business creator or entrepreneur could benefit from ACRE, the scheme will now be reserved for a more restricted population. Here are the conditions for benefiting from ACRE from the start of 2020:
- Jobseekers on benefit or potentially on benefit
- Unemployed jobseekers who have been registered with Pôle Emploi for at least 6 months in the last 18 months.
- Recipients of certain social benefits such as RSA, ASS or ATA
- People aged between 18 and 25 inclusive
- People aged up to 29 who are recognized as disabled or who do not meet the conditions for entitlement to unemployment benefit.
- Employees or redundant staff of a company in receivership, compulsory liquidation or receivership who take over a business.
- People setting up a micro-business in a "QPPV" priority urban district
- Beneficiaries of the shared child-raising benefit (PreParE)
In reality, this is a step backwards on the part of the government, which nevertheless wanted to send a strong signal in favor of auto-entrepreneurs since its arrival in 2017. The Fédération nationale des auto-entrepreneurs (FNAE) was received at the Ministry of Labor following the government's announcement to scrap ACRE.
Despite these announcements the micro-entrepreneur status status remains particularly attractive for many people wishing to set up or take over a business. It still allows you to benefit from streamlined administrative, social and tax procedures at the time of creation, throughout the life of the business and when it is wound up.
Written by our expert Paul LASBARRERES-CANDAU
December 23, 2019
