Start-up : which French tax credits to claim ?

A start-up must sooner or later seek funding to support its growth. For this, the French government has promoted numerous incentives to encourage the development of start-ups. Nevertheless, the diversity of the subsidies available makes it quite hard to navigate. In France, a start-up can request specific tax credits to meet their needs. PHAN Experts conducts a review of these tax credits.

The research and developement tax credit

The Research Tax Credit (RTC) is a tax reduction scheme used to support research and development (R&D) activities. Both newly created companies and older ones can benefit from the Research Tax Credit.

For R&D activities, there is no maximum size threshold for the company. For non-R&D innovation activities, sales must be less than or equal to € 50 million and the number of employees less than 250. The RTC rate is 30% for research expenses not exceeding € 100 million. Beyond this threshold, this rate goes down to 5%.

The innovation tax credit

This second scheme is reserved for SMEs with sales not exceeding € 50 million and employing less than 250 people. The innovation tax credit awarded represents 20% of the expenses incurred for the design and production of prototypes of a new product. The amount awarded for each company cannot exceed 400 000 € per year.

Note that the company can benefit from the innovation tax credit independently of the research tax credit.

The status of young innovative company

The Young Innovative Company status (JEI in French) allows SMEs with less than 8 years of existence to benefit from tax and social exemptions. It must also be independent and not be created as part of a corporate restructuring (mergers, acquisitions). In addition, R&D expenses must total at least 15% of the tax deductible expenses for the year. In addition, it should be noted that the start-up can combine the subsidies granted under the JEI status with that of the RTC.

The status of young university company

The status of young university company (JEU) is a particular category of the young innovative company. Young university companies are entitled to the same tax and social exemptions as JEI, under two conditions:

  • Students and teacher-researchers must hold at least 10% of the young university company.
  • The main activity must be the promotion of research work carried out in a higher education institution.

Your start-up needs to finance its growth and is eligible for one of these tax credits ? PHAN Experts offers its tax services to help you claim the tax credits you are entitled.