Estimate your Crédit d'Impôt Recherche (CIR) and Crédit d'Impôt Innovation (CII) based on eligible R&D expenditure.
What qualifies as R&D expenditure for CIR?
Eligible R&D expenditure includes: personnel costs for researchers and technicians, operating expenses (calculated as a percentage of personnel costs), amortization of R&D equipment, costs of patents and patent maintenance, subcontracted research (to approved organizations), and technology monitoring expenses (veille technologique) up to €60,000.
What are the CIR and CII rates?
The CIR provides a 30% tax credit on the first €100 million of R&D expenditure and 5% above that threshold. The CII (Crédit d'Impôt Innovation) provides a 20% tax credit on innovation expenses for SMEs, capped at €400,000 per year. Both credits can be offset against corporate tax or refunded.
What is the difference between CIR and CII?
CIR covers fundamental research and experimental development activities — creating new knowledge or processes. CII covers innovation activities for SMEs — creating new products with improved performance, functionality, or design beyond the state of the art. CII is restricted to SMEs (fewer than 250 employees, turnover under €50M).
How do I claim the CIR?
The CIR is declared annually with the corporate tax return using form 2069-A. The credit is first offset against the current year's corporate tax. If the credit exceeds the tax due, the excess can be carried forward for 3 years. SMEs, new companies, and JEIs (Jeunes Entreprises Innovantes) can request an immediate refund.
Compliance: This calculator uses official French tax rates for 2025. Results are indicative — for complex situations, consult a tax professional.
How the CIR helps French businesses invest in innovation
How does this work in France?
the R&D Tax Credit (CIR) in France follows specific French rules set by the DGFiP and Code Général des Impôts. The system is designed to balance social protection with economic activity. Understanding the rules helps you plan your finances and avoid surprises at tax time.
What are the key rates and thresholds?
French rates and thresholds are updated annually in the Loi de Finances. Income tax brackets, social charge rates, and benefit thresholds all change each January. Always check the latest figures on impots.gouv.fr or service-public.fr. Using outdated rates can lead to incorrect calculations and unexpected tax bills.
How does this affect your annual tax return?
All income and deductions must be reported on your déclaration de revenus annuelle, filed online at impots.gouv.fr by mid-May. The tax office cross-references your declaration with employer data (DSN), bank reports, and other sources. Errors can trigger a contrôle fiscal (tax audit) with penalties of 10-40% of undeclared amounts.
What records should you keep?
French law requires keeping all financial records for at least 6 years for tax purposes and 10 years for commercial documents. This includes invoices, receipts, bank statements, contracts, and payslips. Digital copies are accepted if they are legible and stored securely. The fisc can audit any period within these timeframes.
Where can you get help?
For tax questions, contact your SIP (Service des Impôts des Particuliers) or SIE (Service des Impôts des Entreprises). The service-public.fr website has detailed guides. For complex situations, hire an expert-comptable (chartered accountant) — fees range from €500 to €3,000/year. Trade unions (syndicats) and the CAF also provide free advice on social benefits.
What penalties apply for errors?
Late filing: 10% surcharge plus 0.2% per month of interest. Deliberate understatement: 40% penalty. Fraud: 80% penalty plus potential criminal prosecution. If you discover an error, file a déclaration rectificative as soon as possible — voluntary correction reduces penalties. The fisc appreciates good faith and transparent communication.
DGFiP-Aligned: Based on 2025 DGFiP rates and thresholds. For personal advice, speak to a qualified expert-comptable (chartered accountant).
Disclaimer: This calculator provides estimates based on current French tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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