Company tax credits
You are a company and want to develop your research and development work.
You are a company and want to find out about tax incentives in France.
You are a research and development company and want to take advantage of a tax credit for this reason.
Taxation in France
The research tax credit, also known as the CIR (crédit d’impôt recherche), is a tax incentive aimed at companies carrying out research and development activities, in accordance with article 244 quater B of the French General Tax Code (CGI).
Who can benefit from the research tax credit?
Companies entitled to this scheme are companies subject to corporation tax or income tax who perform an industrial, commercial or agricultural activity.
These companies can benefit from a tax credit for their research and development activities, and particularly:
- Fundamental research operations: theoretical or experimental contribution to the resolution of technical problems;
- Applied research operations: possible applications of results of fundamental research or finding new solutions;
- Experimental development activities: prototypes or pilot plants
These operations can occur in various sectors such as the chemical industry, science and information technology or software design.
What sort of expenses entitle you to the research tax credit?
Expenses eligible for the CIR are, in particular:
Personnel costs relating to research scientists and research technicians
- Operating expenses
- Expenses resulting from outsourced research
- Collection expenses
- Expenses relating to the monitoring of technical developments
This expenditure may be taken into account either in whole or in part as the case maybe, on the dual condition that it is deductible from the taxable profit in France and corresponds to operations located within the European Union, Norway, Iceland or Liechtenstein.
Is there a tax credit for innovation expenditure?
The innovation tax credit also known as the CII (crédit d’impôt innovation) is an extension of the research tax credit (CIR).
Only companies meeting the definition of an SME under European Community law (= having a salaried workforce in the company of less than 250 people and achieving an annual turnover not exceeding €50 million or an annual balance sheet total not exceeding €43 million) are allowed to benefit from this tax credit.
The innovation activities concerned are any scientific, technological, organisational, financial or commercial initiatives, including investment in new skills, which lead or are intended to lead to new or improved products and services. This particularly includes design work, producing prototypes, new products or more pilot projects.
What is the amount of the CIR and the CII?
The rates for the research tax credit are as follows:
- 30% of all the expenses incurred up to €100 million;
- 5% of the expenses exceeding €100 million;
The innovation tax credit for SMEs is:
- 20% for innovation expenses incurred by SMEs up to €40,000.
- To find out if your company’s expenses are eligible for the research tax credit or the innovation tax credit, it is advisable to seek the advice of a tax lawyer.
What are the procedures involved in applying for a research tax credit or an innovation tax credit?
To benefit from the tax credit, eligible companies must sign a special declaration no. 2069-A-SD and attach it to the corporation tax balance statement for companies subject to corporation tax and to the declaration of earnings for companies subject to income tax.
The CIR and CII are determined for each calendar year, whatever the date of the end of the financial year.
Altexis offers you full support in applying for the research tax credit and innovation tax credit, in particular:
- We can check if your company is eligible for the research tax credit
- We can calculate the amount of tax credit to which you are entitled
- We can complete the corresponding declaration to apply for the research tax credit