The research and development tax credit is a public assistance facility designed to help companies develop their R&D activities in France.

Who is the R&D Tax Credit For?

- All companies (industrial, commercial or agricultural) subject to corporate income tax in France.
- Fundamental research, applied research and experimental development projects. Must demonstrate an appreciable element of novelty, resolving scientific/technical uncertainty.

How Much Can You Save?

It’s the best savings in Europe!
- 50% yearly R&D expenses, up to €100 million (and 5% for expenses above this level), the first year
- 40% the second year
- 30% subsequent years

In 2008, research tax credit savings nationwide will total €1.3 billion
France’s goal is to reach €2.7 billion by 2012.

How Can You Get Started?

- Fill out a simple form to send when your company declares its revenues.
- Check Ahead: Eligibility of an R&D project can be confirmed by the Ministry of Research and Advanced Education prior to beginning work. The ministry must respond within 3 months following the request, after which time eligibility is assumed.

Which Expenses are Eligible?

• Research-related personnel expenses: Wages (researchers/technicians); social charges (researchers/technicians); 200% of all personnel expenditures for young doctors in the first 24 months after being hired and 75% of personnel expenditures for researchers and research technicians.
• Research-related operations expenses: Up to €10 million per year incurred within the EU for approved organizations; and 200% of up to €12 million for public laboratories or universities
• Research-related depreciation expenses: Buildings, equipment, patents
• Other research-related expenses: Filing and maintaining patents; new collection produced by industrials in the textile, clothing and leather industries; insurance and defence of patents and for technology surveillance.

This tax incentive is an important element  in choosing our projects and future investments in R&D. The new calculation method seems to be more advantageous and easier to put in place. (Stéphane Boudaud, CSR Telecoms France)

If the credit exceeds the tax, or if the company incurs a loss, the remainder can be deferred to future taxes paid over the next three years and, if necessary, reimbursed in cash at the end of this period.

Tax credits not charged or refunded will result in a credit with the Treasury.  This credit may be transferred as a guarantee to a credit institution.

Innovative start-ups and new SMEs owned by individuals (minimum 50%) for a new activity can receive immediate reimbursement for the tax credit during the five years following their creation.