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Research and Innovation (CIR, JEI): updates to the Finance Act 2011

The Finance Act 2011 brings some changes in tax benefits for young innovative enterprises and those benefiting from device research tax credit.

In a context of fiscal deficit of the state incentives for research and innovation have also been a "movement of the plane" are summarized below:


Research Tax Credit ( CIR)
The device is modified both at the base of the CIR rate as the tax credit:

• lower premium rates (applicable to those first two years). The increased rates are lowered to 40% instead of 50% the first year, and 35% against 40% before the second year;
• drop the package on operating costs: 50% of staff costs rather than the current 75%,
• spending limits of private subcontracting to 3 times total research expenditures eligible in-house (until now they were capped at 10 million euros,
• deduction of eligible expenditure base (in some cases) cost consultancies helping companies assembling their case CIR.

Young Innovative Companies (YIC)
Young Innovative Companies (YIC) could receive up to an exemption from employer contributions (excluding contributions accidents / illnesses) for jobs in research and development during the first 8 years following the creation of establishment.
Now a double cap applies

• a ceiling of gross monthly salary per employee at 4.5 times the SMIC,
• an annual maximum contribution per eligible institution, set at three times the annual limit of social security (106,056 euros for 2011).

Moreover, exemption from charges is regressive: it is still full on the first 3 years (following the creation of the institution) then becomes decreases over the last four years of device: 75% , 50%, 30% and 10%.



See also:

• Young Innovative Companies (YIC) status and tax and social benefits
• Project Finance Act 2011 for companies and individuals

the Press of Adafec (Http://adafec.blogspot.com)