In the French innovation landscape, the Research Tax Credit (Crédit d'Impôt Recherche - CIR) is a strategic lever for supporting companies' research and development (R&D) activities. Introduced by the French government, the CIR aims to encourage and stimulate innovation through attractive tax incentives.
What is the Research Tax Credit (CIR)?
The Research Tax Credit (CIR) is a tax mechanism designed to encourage companies to invest in research and development activities. Since its inception, the CIR has become a pillar of France' s innovation policy, offering significant financial support to companies engaged in innovative projects.
Who can benefit from the CIR?
All companies operating in France, whatever their size or sector of activity, can potentially benefit from the Research Tax Credit. This includes innovative start-ups, dynamic SMEs as well as large established companies, as long as they invest in research and development projects.
Read on to find out more!
The benefits of the CIR
Eligibility criteria and types of eligible projects
To qualify for the CIR, companies must meet certain criteria defined by tax regulations. These criteria relate in particular to the nature of the research work undertaken, which can be classified into three main categories:
- Fundamental research: experimental or theoretical work undertaken with a view to acquiring new knowledge about the foundations of phenomena or observable facts, with no direct practical application or use in view.
- Applied research: Work aimed at seeking the benefits that discoveries and knowledge, generally obtained through fundamental research, can bring to a given branch of activity.
- Experimental development: Work aimed at acquiring, combining, shaping and using scientific, commercial and other relevant knowledge and skills with a view to developing new or improved products, processes or services.
Tax credit payment: Process and deadlines
Payment of the tax credit follows a specific process, offering companies flexibility in managing their finances.
5 key stages in the payment of the tax credit :
- The tax credit is deducted directly from the company's income tax (IR) or corporation tax (IS).
- It is chargeable to the company in the year in which the research expenditure is incurred, offering immediate tax relief.
- Any unused surplus can be carried forward and deducted from income tax (IR or IS) for the following three years, enabling medium-term tax optimization.
- At the end of this waiting period, if the receivable has not been fully utilized, it becomes repayable, providing the company with additional cash flow.
- In certain specific cases, such as for SMEs, young innovative companies or those in receivership or liquidation, an immediate refund of excess tax credit can be granted, offering more immediate and vital financial support.
Axsens bte obtains CIR approval in 2021
It is awarded after examination of a dossier by the Ministry of Higher Education, Research and Innovation.
This approval enables companies outsourcing their R&D work to recover 30% of eligible expenses as part of the research tax credit.
Axsens bte obtained its CIR accreditation in 2021, joining the list of accredited service providers(link to public site). This accreditation gives our customers the assurance that we have the potential to carry out research and development projects. We are proud of this recognition and are committed to continuing to provide high-level research and innovation services.
Axsens Research and Expertise areas bte
At Axsens bte, we have been involved in applied research for over 12 years, with a particular focus on the topics of:
Problem solving :
- Feedback management
- Recommendation systems
- Tools for resPro methods
Artificial intelligence :
- Decision-making tools
- Data processing
- Knowledge management and expertise
Industry of the future :
- Production management
- Automation
- Customization / Configuration
Sustainable development :
- Sustainable supply chains
- Circular Economy
- Relocation of industries
The different types of partnerships :
We offer various types of partnerships to companies interested in the CIR, including :
- Subcontracting research projects,
- Collaborations with university laboratories,
- CIFRE theses
- Sharing intellectual property
In conclusion, the Research Tax Credit plays a crucial role in supporting innovation and economic growth in France. By encouraging companies to invest in R&D, it strengthens their competitiveness and capacity for innovation, while promoting the creation of skilled jobs and the growth of strategic sectors.
These incentives, such as the CIR, enable France to remain a world leader in innovation and technology, developing innovative and sustainable solutions to meet future challenges.
Do you have a CIR project and need to outsource a subject?
To find out more :
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