The Research Tax Credit (CIR) is a tax measure available in France that aims to stimulate business investment in research and development (R&D). It allows companies to benefit from a tax reduction based on their expenditure on eligible R&D activities, whether fundamental research, applied research, or experimental development.
Key aspects of the CIR:
- Eligibility: The CIR is available to all companies regardless of their sector of activity or size, as long as they are subject to corporate income tax or income tax in France.
- Eligible expenses: Eligible expenses include researchers’ salaries, the cost of equipment used for R&D, subcontracting costs to research organisations, and expenses related to patents and technology watch.
- Credit rate: The CIR represents 30% of R&D expenses up to €100 million, then 5% above that amount. For start-ups, the rates are more advantageous in the early years.
- Use: The amount of the credit can be used to reduce the tax due or be refunded to companies under specific conditions, making it a crucial financial lever to support innovation.
In summary, the CIR is a key tax tool for companies, enabling them to significantly reduce the cost of their research projects and encourage technological innovation in France.
In 2023, approximately 25,000 companies in France benefited from the Research Tax Credit (CIR). This scheme, which represents a significant portion of public aid for innovation, has enabled these companies to reduce their taxes based on their research and development (R&D) expenditures. The total amount allocated through the CIR reached nearly €6 billion.