Le Crédit d’Impôt Recherche (“CIR”) is France’s tax incentive program that aims to promote companies of all sizes investing in research & development (R&D).
In simple terms, any eligible business can claim qualifying R&D expenses under the R&D tax credit scheme. In return, companies receive up to 30% of the amount claimed as a tax credit.
Also, any R&D expense that fall under either fundamental research, industrial research or experimental development can be claimed. Examples of such expenses include: salaries, subcontractor costs, overheads, etc.
What is it?
Tax credit of up to 30% of claimed R&D costs. The tax credit is then used to offset any corporate taxes in the future.
For whom?
The eligibility criteria for France’s R&D tax credit is very broad. Indeed, all types of businesses from any sector can be eligible as long as they invest in R&D.
Also, it doesn’t matter whether your business is loss-making or profitable. Indeed, even loss-making businesses can claim R&D expenses under the CIR tax program and carry forward any tax credit in the future. So as long as you spend in R&D, you can claim CIR.
For more information on France’s R&D tax credit, read our article here.