Research Tax Credit (CIR) – France 2025

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The Research Tax Credit (CIR) is a financial incentive designed to encourage businesses in France to invest in research and development (R&D). The tax credit rate varies depending on the company’s location.

Who Can Benefit from CIR?

Businesses engaged in industrial, commercial, or agricultural activities may qualify for CIR if they meet at least one of the following criteria:

  • They are subject to corporate tax (IS) or income tax (IR) under a real tax regime (standard or simplified).
  • They are tax-exempt but fall under special categories such as:
    • Young Innovative Enterprises (JEI)
    • Companies established to revive struggling businesses
    • Businesses operating in designated tax-advantaged zones (e.g., Regional Aid Zones, Free Urban Zones, Employment Revitalization Areas, etc.)
  • Artisan businesses under an effective tax regime generating industrial and commercial profits (BIC).

What R&D Activities Are Eligible?

CIR covers expenses related to:

  • Basic research: Theoretical or experimental studies aimed at gaining new knowledge.
  • Applied research: Research focused on finding practical applications for scientific discoveries.
  • Experimental development: Systematic work to develop or improve products and processes.

Only research conducted within the EU or European Economic Area qualifies, provided there is an administrative agreement for tax cooperation.

Eligible Expenses Under CIR

Businesses can claim CIR for a variety of research-related expenses, including:

  • Depreciation of R&D assets (e.g., buildings, equipment, prototypes)
  • Staff salaries for researchers and technicians directly involved in R&D
  • Additional compensation for employees contributing to patented inventions
  • Legal costs related to patent filings and intellectual property defense
  • R&D outsourced to accredited research institutions or private organizations
  • Certain administrative expenses (e.g., a portion of staff and depreciation costs)
  • Textile, clothing, and leather sector innovation (until December 31, 2027)

CIR Tax Credit Rates in 2025

The tax credit percentage depends on where the company operates. Additionally, public funding received for R&D projects must be deducted when calculating the final CIR amount.

CIR is assessed annually, regardless of the company’s financial year-end.

How to Apply for CIR?

Businesses must submit supporting documents based on their total eligible R&D expenses:

  • Under €10M
  • Between €10M and €100M
  • Above €100M

The tax credit is deducted from corporate (IS) or income tax (IR) when the company files its annual tax return.

Using the Research Tax Credit

  • CIR can be carried forward for up to 3 years if not fully used.
  • If unused after 3 years, the remaining balance is refunded.
  • Certain companies (e.g., startups, businesses in restructuring, or under legal proceedings) may have special refund rules.

How to Claim a CIR Refund?

  • For corporate tax (IS) payers: Submit the refund request via the online tax portal (impots.gouv.fr).
  • For income tax (IR) payers: File the claim when submitting an annual tax return online.