The French Government Crédit d'Impôt Recherche (CIR) tax accreditation scheme allows any company based in France to gain valuable tax credits or rebates on their R & D expenditure within the European Union, provided that the expenditure is internal within the company or with an accredited supplier company or organisation in the EU such as VRM. The scheme which was started in 1996 and revised in 2008, is intended to stimulate research and innovation by French companies and is available to all French based companies regardless of sector or size. It has been specifically designed with the needs of small and medium enterprises (SME's) in mind. Eligible expenditures include manpower and equipment dedicated to in-house R & D activities, subcontracted research activities, technological surveillance, and patent filing and protection.
All industrial, commercial and agricultural businesses are eligible for the research tax credits, if they choose to apply for them. The credit can either be deducted from the annual corporate tax due to be paid by the company, or be paid as a cash reimbursement after a period of three years. Certain innovative SME's can receive their research tax credits in cash at the end of their first year of business (if the company has not already deducted it from its' corporate tax liability).
Currently credit rates are believed to range from approximately 5 to 30%, with even higher rates available as introductory bonuses for companies applying for the first time and for those that have not received the credit within the last 5 years. Rates and conditions are determined by the French government and are subject to change.
It is the responsibility of the company commissioning the R & D to determine if they may be eligible for a rebate and to make the application if they are commissioning services from a CIR accredited company such as VRM or Ridgeway Research.
More details can be found on the French Government website.
Similar R & D tax incentives operate in many European Union member states and OECD countries to encourage research and innovation.
(Disclaimer: VRM accepts no liability for the accuracy of the information on this page as government taxation policies are subject to change without notice)