An exciting prospect for innovative businesses, the CIR has the potential to make a great difference to your company’s finances.
What is CIR?
Crédit d’impôt Recherche (CIR), or Research Tax Credit (RTC) is a measure implemented by the French government to incentivise innovation. To make innovation and development more accessible to all companies, the tax credit regime partially reimburses expenses incurred in research and development (R&D).
In France, 30% of R&D expenses incurred up to €100 million can be covered by the tax credit. In French overseas departments, this amounts to 50%. It is deducted from corporate tax.
Is my business eligible?
The activities that are eligible for this tax credit scheme are threefold:
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Fundamental research
refers to acquiring new knowledge through experimentation.
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Applied research
is used to determine the applications of the results of fundamental research.
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Experimental development research
involves developing new products or processes founded on the knowledge gained from the previous research.
Any industrial, commercial or agricultural business, regardless of size or jurisdiction, can be eligible for this tax reduction scheme. It must however be located within the EU or a Member State of the European Economic Area.
For more information on this topic, do not hesitate to contact us, our team of experts will be more than happy to assist you with any queries you may have.
