JEI – Jeune Entreprise Innovante
The young innovative company (JEI), gives SMEs under eight years of age that have research and development expenses representing at least 15% of their costs, a number of advantages making it very attractive:
- an exemption from income tax (and before its abolition on January 1, 2014, from IFA).
- a tax exemption on capital gains on the sale of shares for the partners of the JEI.
- a reduction in employers’ social security contributions on salaries paid to staff involved in research.
This benefit was drastically reduced in 2010. Since January 1, 2014, the exemptions have been reinstated at the full rate (100%), only on employers’ contributions for health insurance, maternity, disability, death, old age, and family allowances until the last day of the seventh year following the year of the company’s creation.
A new company that invests in research and development (R&D) has the status of a young innovative company (JEI) or a young university company (JEU). It can benefit from tax and social exemptions. JEI status has been extended to GAMES that constitute a particular JEI category.
To be a young innovative company (JEI), the company must meet the following conditions:
- Be an SME: it must use less than 250 people and achieve turnover less than 50 million or have total balance less than 43 million
- To benefit from the social exemption: It must have been created since less than 8 years (the company definitively loses the status of JEI in the year of its 8eanniversary)
- It must R&D expenditure representative 15% charges.
- Exemption from income tax
- Exemption on tax built on properties/ property tax
Exemption of capital gains from the sale of shares.
If you wish to find out more, do not hesitate to contact us via telephone +33 (0) 1 53 93 94 20 or by mail at [email protected]. Our team of experts will happily assist you with any queries you might have.
If you would like to keep up to date with everything that is happening here at Maupard then be sure to follow us on our social media pages :