Research Tax Credit (CIR)

The CIR allows companies carrying out R&D activities to recover 30% of the associated eligible expenditure.

The Research Tax Credit (CIR) is France’s primary tax incentive aimed at encouraging companies to invest in research and development (R&D), thereby enhancing their position in the value chain and boosting competitiveness. Currently, approximately 15,000 to 20,000 companies, with small and medium-sized enterprises (SMEs) accounting for 88%, declare CIR annually, totaling over 7.5 billion Euros.

However, to fully and securely benefit from this scheme, it is crucial to consistently adhere to compliance obligations and best management practices.

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The CIR in short

Target audience Target audience

Start-ups, SMEs, mid-sized companies, or large corporations

Project type Project type

All Research & Development (R&D) activities

Percentage per project Percentage per project

30% of eligible R&D expenditure

Activities

Scientific and technical activities eligible for the Research Tax Credit (CIR), under the supervision of a researcher, must collectively meet the following five official eligibility criteria:​

Identification of a technical or scientific bottleneck in the current state of the art, making the outcomes uncertain.

Definition and application of new concepts or ideas aimed at enhancing the state of knowledge.

Production of new knowledge through original results that differ from expected outcomes.

Planning and structuring of a scientific approach. ​

Documentation of the processes and results of R&D work to facilitate potential reproduction or transfer.

Qualifying tasks

Once the eligibility of scientific and technical activities under the supervision of a researcher is confirmed, the qualifying tasks must align with one of the following three definitions:

  • Basic Research: Activities aimed at acquiring new theoretical or experimental knowledge without any immediate application or use in view.
  • Applied Research: Original investigations undertaken to acquire new knowledge, directed primarily towards a specific, practical aim or objective.
  • Experimental Development: Systematic work, drawing on existing knowledge gained from research and practical experience, that is directed to producing new products or processes or to improving existing products or processes.

​Beyond meeting the eligibility criteria and scope, certain R&D indicators can further substantiate the eligibility of activities for the Research Tax Credit (CIR). These indicators include partnerships with public laboratories, securing public R&D funding, or prior validation of R&D efforts by third-party expertise. Such elements can provide additional assurance regarding the qualification of your R&D activities.​

However, managing the CIR in an optimized, secure, and efficient manner requires time, a methodical approach, and specific expertise. Implementing a precise tracking system for R&D activities, maintaining detailed documentation, and adhering to best practices are essential steps to fully benefit from this tax incentive while minimizing risks.

CIR eligibility conditions

To determine your eligibility for the Research Tax Credit (CIR), you must generally:

  • be a legal entity subject to corporate tax in France
  • conduct R&D activities within France
  • substantiate eligible expenses, as the CIR amounts to 30% of these expenditures. These may include technical personnel costs, capitalized technical assets, subcontracting to “CIR-approved” providers, industrial property expenses, technology watch, or standardization activities. Note that public funding received for eligible R&D activities/expenses must be deducted from the expenditures before calculating the CIR.

How can we help you?

PNO Innovation’s experts can help you put your project together. They will also help you define your project’s strategy and position it in line with market trends and national and European strategic objectives.

Our experts

Contact us for a project audit!

Recover more than 30% of your R&D expenses — working with PNO Innovation for your CIR management means a secure, turnkey application you can rely on.

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