This type of financing involves tax credits that are proportional to the investment in innovative projects.
If the credit exceeds the tax paid it may be refunded by the treasury. The system may therefore provide cash flow for companies, even if they are operating at a loss or pay little tax.
Research Tax Credit (Crédit d'Impôt Recherche, CIR) - New Collection Credit (Frais de Collection)
The CIR is equal to 30% of expenditure on identified research or development. It is calculated for each calendar year and to claim for it companies have to fill in the tax form 2069-A-SD.
The New Collection tax credit uses the same tax form. It covers expenditure related to the development of new collections of companies working in the textile-clothing-leather industry. The CIFC is a regime falling within the scope of the "minimis" regulation that sets a ceiling limit of €200,000 on subsidies allowed to a business over three tax-year periods.
The CIR does, however, involve more than simply filling in the right form.
The company must also keep records justifying the research and development work carried out that can be provided, if required, to inspectors from the tax authorities and the Ministry for Higher Education and Research.
The records must present the technical features of the project in comparison with the state of existing knowledge. The inspector must be able to evaluate the innovative element of the project as well as any inherent uncertainties, especially if it is an expert working on behalf of the ministry for education.
For answers to some of the most frequently-asked questions about the CIR click on FAQ.
Video Games Tax Credit (CIJV)
The tax credit for video games corresponds to 20% of identified costs in the design of a video game. It is granted for minimum development costs of €150,000 and can lead to a maximum tax credit of 3 million euros per calender year and per entity.
To benefit from this credit, provisional approval for the credit must be obtained that is valid for 36 months and enables the developer to receive a tax credit each year for 3 years. At the end of the 36-month period, definitive approval is granted if it can be shown the work has been carried out.
Particular care must be taken when filing for definitive approval: if the case is rejected, any credits granted must be reimbursed with interest for late payment.
EIF i's specialists can take care of all administrative and technical aspects relating to this credit.