This rate is reduced to 5 for the portion above this threshold

Companies who agree research expenditure can benefit from a tax credit research (CIR) an amount equal to 30 of the fraction of expenditure incurred during the year not exceeding 100 M. This rate is reduced to 5 for the portion above this threshold. Conversely, it is increased to 50 the first year and 40 the second year for the enterprises benefiting from the tax credit search for the first time or those who have not received in respect of the previous 5 years.

Eligible research expenditures

Expenditure falling within the scope of the research tax credit are strictly defined. It's those allocated to the realization of fundamental research, applied research or experimental development operations. Businesses may include these expenses depreciation of assets assigned to search operations, the costs associated with the patent and plant variety certificates, the remuneration of researchers and research technicians, as well as the cost of search operations subcontracted some research organizations.

In practice: the basis for the research tax credit, the creation or improvement of a product or process must present original substantial non-simple use of the State of existing techniques. Only operations to resolve scientific or technological uncertainty are taken into account. In other words, the work must be based on a technicality is outstanding expertise in the profession.

Therefore, it is not always easy for a company to determine if the expenses that it considers are consistent with the realization of scientific and technical research giving entitlement to the tax benefit. That is why, in case of doubt, it is possible to examine the tax administration to determine whether expenditures fall well within the Ric through the procedure of prior notice or "Rescript".

The agreed prior procedure

Prior agreement procedure has been the subject of several recent improvements. On the one hand, so that companies can be quickly attached to their fate, the tax administration has now to 3 months to meet (instead of 6 previously). The lack of response in 3 months is tacit, that expenses described by the company in his Rescript application are considered to give a right to the tax benefit. On the other hand, since August 1, 2009, the companies can also apply directly to the Ministry of research, through inter alia the regional delegates to research and technology, OSEO innovation society or the National Agency for research (ANR), if their project is a scientific and technical nature making it eligible for the tax credit. But beware, the position taken by these services only applies to its scientific and technical application, the tax administration remaining sole judge in respect of the other conditions of application of the CIR. And the rendered view is for the specific research presented project and for the undertaking concerned. Finally, for applications submitted after July 1, 2009, if the company gets a negative answer, she has the ability to exercise an administrative appeal against that decision within a period of 2 months. This avenue of recourse is however open to companies who have filed their request directly from the tax administration.

In practice: to take account of these new arrangements, the administration has just published a new model to be used by companies who submit an application to Rescript, available on the site internet (cf. arrested on 27 August 2009, OJ of 29). Decree No. 2009 - 1046 dated August 27, 2009 and Decree of August 27, 2009, OJ of 29