R&D Tax Credit: Pay less tax!
According to the French department of administration, Business France, the number of researchers employed in R&D by French companies, between 2008 and 2013, increased by 23%. There are 5.7 researchers in French companies (per 1000 active employee) compared to 4.8 in Germany and just 3 in the UK. This makes us just as welcoming as our neighbours when it comes to welcoming new innovative future projects. Does this statistic only apply to the major international groups?
At Maupard, we can confirm this trend extends to our SME clients, regardless of their country of origin. There has definitely been a growth in job creation, generated by our clients entering France, thanks to the CIR.
- Over the last 10 years, we have helped our clients to create 80 new, stable jobs.
- We have supported 10 applications for SMEs entering France for an R&D project; and we maintain our 100% success rate.
- The average value has reached €100,000 per file per year.
What are the reasons for this?
- Why is France so attractive? What do I need to know about the CIR?
- First of all, you benefit from a tax credit of 30%, applied to research expenditure up to €100m, and 5% above this figure. This is the highest credit tax rate in Europe. This CIR is so generous that, in our opinion, it over-compensates for the very high social security contributions in France. What the OECD study confirms 
- In addition, to encourage companies’ research projects, young phD students’ expenses are included in the calculation and valued at up to 200% of actual costs. Of course this encourages hiring young innovative phD students.
- The CIR value is deducted from the French corporation tax, but if there is not enough corporate tax to absorb the CIR, it can be carried forward for the next 3 years; and, in the absence of corporate tax, it can be refunded: this is where we come in:
- Why choose Maupard ?
- At Maupard, in order to secure the profits generated by the CIR, and to protect the project against the risk of future tax reassessment, we systematically ask the administration for a rescript. In short, it is a question of ensuring that your research project is well-recognized before starting an authentic research activity and that it will not be called into question during a subsequent tax audit.
- Once your Research Tax Credit has been accepted by the administration, the tax risk becomes very low and marginal. Then, you can take advantage of the benefits offered by the government with complete peace of mind and include profits in your business plan.
- The credit tax can be carried forward for 3 years. However, at Maupard we will work to get you an immediate refund if you meet the following criteria:
- Innovation criterion: new enterprise or enterprise under the JEI regime
- Size criterion: company meeting the criteria of an SME
This is a subject on which we have 10 years of experience and our record speaks for itself when it comes to why our customers trust us. Equally, the tax administration trusts us. We even received late payment interest from the tax authorities when they did not pay our clients back on time!
If you are interested, please go to Service 19.