The French Budget Law for 2013 (Law No. 2012-1509 of December 29, 2012) extends the existing research tax credit (RTC) to ‘Innovation’ expenses incurred by companies that meet the EU definition of micro, small and medium-sized enterprises.
The French Budget Law for 2013 (Law No. 2012-1509 of December 29, 2012) extends the existing research tax credit (RTC) to ‘Innovation’ expenses incurred by companies that meet the EU definition of micro, small and medium-sized enterprises. It also modifies different aspects of the ‘general scheme’ of the RTC.
The RTC is a tax incentive to encourage research and development by companies, in the form of a tax credit calculated on the basis of the actual R&D expenses. Before the current Budget Law, it included two components set out in Article 244 of the French General Tax Code (Code Général des Impôts): the general scheme and a specific scheme granted to the textile, clothing and leather-related industries.
The general scheme, which can benefit all industrial and commercial enterprises, provides for a tax reduction on the basis of a single rate of 30 percent for research expenditure up to €100 million and at 5 percent for research expenditure above this amount. The new law abolishes certain rates of 40 percent and 35 percent that had been reserved for companies entering the scheme for the first time or which had not been receiving it for five years.
To continue reading, you need a subscription to WIPR. Start a subscription to WIPR for £455.
In-house feature articles, the archive and expert comment require a paid subscription. Subscribe now.
Want to give it a try? We are offering a two week free trial to the WIPR website – register and select “Free Trial” to begin access to the full WIPR archive and read the latest news, features and expert comment. Begin your free trial here.
Is your 2 week free trial about to end? Upgrade to a 12 month subscription for £455 now.
If you have already subscribed please login.
If you have any technical issues please email James Lynn on firstname.lastname@example.org.
research tax credit, innovation expenses, French Budget Law, RTC, SMEs