"More than 17,000 companies, ranging from biotechnology and energy to software and gaming, are cashing in on the tax advantages and subsidies for innovation this year in France, with an average break of about 323,500 euros." (Bloomberg, 2014)

The French tax credit "CIR” :

  • Is deducted from owed taxes
  • Or paid cash to young companies not owing any taxes.

CIR Covers 30% of R&D expenditures (up to €100 M) :

  • Staff expenses ;
  • Operating costs ;
  • Depreciation allowances ;
  • R&D subcontracting in France or other EU and EEA Member States ;
  • Fees for patent filing, patent maintenance includes depreciation allowances.

A new tax credit covers innovation expenditures incurred by SMEs :

  • For the design of new product prototypes not yet brought to the market or with superior characteristics.

This covers (up to €400,000) :

  • Depreciation on real estate and equipment allocated to innovation activities ;
  • Operating costs.

Tax-credit calculation example

FRANCE’S RESEARCH TAX CREDIT
April 2014
Business France
Tax credit calculation example