Tax Credits for Artisans
There’s no doubt that the French government provides multiple tax incentives in order to support innovative businesses and to help them flourish. This includes providing tax credits for artisans. But precisely which companies qualify for this, and what are the conditions?
In order to benefit from this incentive, the business must follow at least one of the following criteria:
- The company domain is watchmaking, instrument fabrication, manufacturing glasses, tableware, jewellery, toys, furniture or if you are a goldsmith.
- It is classified as an Entreprise du Patrimoine Vivant (Living Heritage Company). This denotes companies with rare, renowned or ancestral crafts, which must have been fabricated using traditional or highly technical techniques.
- The company pays corporate or income tax.
- The costs for the employees working in this sector must add up to at least 30% of the total wage bill.
- Companies that work in heritage restoration may also qualify if the employees’ salaries and social charges are allocated to creating works made in a small series towards the restoration itself.
The expenses eligible for tax credit are as follows:
- Salaries and social charges of employees directly involved with the work, as long as it is not identical to previous company creations. It must either be a single piece of work or it can be a small series of creations. This includes making plans, prototypes, tests or if particular manual development is required.
- Depreciation of fixed assets directly related to the design of new products and prototypes.
- Registration fees for new designs.
- Costs of defending designs (capped at €60,000 per year).
- Expenses related to expanding new collections to external design offices.
The tax credit amount is equivalent to 10% of the costs related to designing new products or the filing and legal protection of these designs, and it is capped at €30,000 per year. For Living Heritage Companies, it is equivalent to 15% of these costs. This initiative is valid until December 31st 2023.
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