France Shows its Support for Innovation by Improving its Research Tax Credit (RTC) System in the Draft Finance Act for 2013


Large industrial, commercial and agricultural companies which are subject to company tax (or income tax on industrial and commercial profits) have been enthusiastic about the RTC system since its adoption. It is now proposed that the package should be extended to small and medium-sized enterprises (SMEs - as defined by Community regulations) which will benefit from approximately €200 million of additional tax benefits.

Despite the increased RTC rates available in the first two years of the scheme being abolished, the bill extends the scheme to expenditure on innovation beyond initial research. This makes what was already one of the most competitive RTC regimes in Europe even more attractive.

The existing RTC system allows tax deductions for depreciation, personnel-related costs (researchers, etc.), operating costs, costs for outsourced R&D, protection of industrial intellectual property, and costs associated with standardization and keeping up-to-date with technology. In addition to these expenses, amounts that SMEs spend on prototypes, new product development, or pilot plants, will now be covered by the RTC scheme.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© K&L Gates LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.