{"id":936,"date":"2019-07-22T10:00:08","date_gmt":"2019-07-22T08:00:08","guid":{"rendered":"https:\/\/www.phanexperts.com\/?p=936"},"modified":"2020-06-30T12:17:12","modified_gmt":"2020-06-30T10:17:12","slug":"startup-french-tax-credits","status":"publish","type":"post","link":"https:\/\/www.phanexperts.com\/en\/startup-french-tax-credits\/","title":{"rendered":"Start-up : which French tax credits to claim ?"},"content":{"rendered":"\n

A start-up must sooner or later seek funding to support its growth. For this, the French government has promoted numerous incentives<\/a> 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.<\/p>\n\n\n\n

The research and developement tax credit<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

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 \u20ac 50 million and the number of employees less than 250. The RTC rate is 30% for research expenses not exceeding \u20ac 100 million. Beyond this threshold, this rate goes down to 5%.<\/p>\n\n\n\n

The innovation tax credit<\/h3>\n\n\n\n

This second scheme is reserved for SMEs with sales not exceeding \u20ac 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 \u20ac per year.<\/p>\n\n\n\n

Note that the company can benefit from the innovation tax credit independently of the research tax credit.<\/p>\n\n\n\n

The status of young innovative company<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

The status of young university company<\/h3>\n\n\n\n

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:<\/p>\n\n\n\n