Who can claim tax credits?
In brief, tax credits can be described as subsidies from the French government. They can be used alone or in combination to reduce the cost of labour for those paying corporate tax in France.
The JEI (jeune entreprise innovante) is one of the more widely recognised tax credits granted in France. Click here to read one of our blog posts dedicated to the JEI, providing you with a more in-depth discussion on the topic : JEI – Jeune Entreprise Innovante – Maupard
It is more likely that you have heard of the R&D tax credits. Companies that invest in research and development and meet the criteria can benefit from a fruitful tax credit, granted by the French government. The CIR (Crédit d’Impôt Recherche) is particularly attractive amongst the R&D tax credits for start-ups in France. This is because companies can receive up to 30% of their research and development expenses back in the form of a tax credit. This tax credit can then be used to offset future corporate taxes.
There are a variety of tax credits available for companies in France, covering numerous sectors of work including companies producing videogames. Click here to read more about this : Video Game Tax Credit – Maupard
Who cannot claim tax credits?
It is crucial to note that not all companies can claim tax credits. In France there are three different types of entity : SAS, Branch and Liason Office. Individuals who have a Liason Office in France cannot claim tax credits. Liason Offices are an extension of a parent-company and therefore do not operate as a legal entity in France. Companies who are classified under this category cannot perform any sales or offer any servcies in France and consequently, they do not pay income tax.
For more information on this, do not hesitate to contact us either by telephone at +33 (0)1 53 93 94 20 or send an email to [email protected]. Our experts will be more than happy to answer any questions you may have.
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