The Research Tax Credit (CIR) is a French tax mechanism that encourages companies to invest in research and development (R&D). Under this scheme, companies can claim a tax reduction proportional to their eligible R&D expenditure, whether it is fundamental research, applied research, or experimental development.
Key points of the CIR:
- Available to all companies: Regardless of size or sector of activity, provided they are subject to corporate or income tax in France.
- Covered expenses: Researchers’ salaries, R&D equipment costs, subcontracting costs to research organizations, etc.
- Attractive rate: 30% of R&D expenses up to €100 million, then 5% on amounts above that. Start-ups benefit from even more attractive rates during their first few years.
- Flexibility of use: The credit can be applied to reduce the tax due or, under certain conditions, refunded, providing significant financial support for innovation.
Concrete impact: In 2023, nearly 25,000 French companies benefited from the CIR, with nearly €6 billion allocated. This scheme is therefore a major lever for reducing the cost of R&D projects and stimulating technological innovation in France.