What are the agreements?
R&D tax credit & Innovation Tax Credit agreements are relative to sub-contracted R&D. In the French scheme, when a contractor sub-contracts part of his R&D, the expense only qualifies if the subcontractor is agreed to R&D or Innovation Tax Credits. Companies can obtain the agreement applying to the relevant Ministry: R&D or Industry. The application must demonstrate the applicant’s ability to perform eligible R&D or Innovation project by presenting activities run or achieved in the last 12 months.
Who can apply for the agreement?
Every organization willing to get such an agreement can apply. There are different types of agreements for different eligible activities.
For R&D Tax Credit, these organization must apply for the agreement to the Ministry of Higher Education and Research:
- Research Organization: private or public organization located in France, or in the Economic European Area,
- Scientific or technic expert: individual entrepreneurs located in France, or in the EEA,
- Scientific cooperation foundation, association whose founding and active member is a public research organization, or Higher Education Establishment.
The agreement is automatically granted for public research organizations. If the R&D Tax Credit agreement is granted, the Innovation Tax Credit Agreement can be automatically granted upon request. R&D & Innovation Tax Credit Agreement can be applied for in a unique procedure.
For Innovation Tax Credit, the organizations must apply for the agreement to the Ministry of Industry:
- Innovation Organizations,
- Designers and Design Offices,
- Technical studies offices
An agreement is also requested for collection design in textile & leather sector.
How to apply for the agreement?
The application can be made online on the Public Services website. It can also be made by mail, but the delays are longer.
For the agreements, the relevant Ministry conducts a technical expertise. The structure of the justification report is similar to a R&D / Innovation Tax Credit claim.
- For a first request, the application must be transmitted between the 15th December Y-1 and the 15th March Y. Outside of these time slots, the agreement will cover the upcoming year.
- For a renewal, the application must be sent before the 30th November of the last year covered.
