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Which companies are eligible for the Research Tax Credit?
The Research Tax Credit (CIR) aims to support research and development (R&D) activities of companies, regardless of their sector and size.
This credit is available to:
- Industrial, commercial, and agricultural companies of all statuses
- Companies subject to corporate tax or personal income tax
- Companies included in the category of Industrial and Commercial Profits (BIC)
- Companies taxed under the actual profit regime
Companies that incur expenses in scientific research and experimental development can benefit from the CIR by deducting these expenses from their tax liabilities.
How is the Research Tax Credit calculated?
The Research Tax Credit (CIR) is calculated based on the following rates:
- 30% for research expenses up to or equal to 100 million euros (or 50% in overseas departments and Corsica for expenses incurred as of the financial years ending on or after December 31, 2019).
- 5% for research and development expenses exceeding 100 million euros.
How to benefit from the Research Tax Credit?
You need to fill out the form 2069-A-SD and send it to your business tax office, along with your tax return. Since January 1, 2020, you are required to use the EDI-TDFC declaration procedure.
Does your scientific project qualify for the Research Tax Credit or the Innovation Tax Credit?
Although both aim to advance science and research, the Research Tax Credit (CIR) and the Innovation Tax Credit (CII) are intended for different types of innovative projects in companies.
If your project is aimed at advancing the state of the art, meaning improving scientific and technical knowledge from the early stages of your work, it is eligible for the Research Tax Credit (CIR). This falls under the concept of research and development.
If you are in the phase of designing or creating a prototype or pilot installation for a new product, your project falls under the Innovation Tax Credit (CII). The objective here is technical or technological innovation.