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Two Tax Schemes for Innovative Businesses in France
http://www.entrepreneurs-and-co.com/articles/39/1/Two-Tax-Schemes-for-Innovative-Businesses-in-France/Page1.html
Didier Delmer

"Who are we ?"

Company Profile :


Entrepreneurs and CO Ltd

145-157 St John Street - London EC1V 4PY

Chartered Accountants & Business Advisers, at Entrepreneurs & Co (ENC), we appreciate the value of working together as a team.

Because the flow of ideas is encouraged at ENC and everyone feels free to express their opinion with regard to work related matters it has by the very nature of being, created a dynamic work environment. As a team we all recognise our responsibility in making Entrepreneurs and Co what it is.

The reputation of the whole firm is in the hands of each individual and we are proud of being part of such a strong team. Together we encourage and motivate each other in a dynamic environment so that as a team we can provide innovative and profitable solutions for individuals and businesses.


Services

Every client is unique and deserves a unique service. Our philosophy is to put our clients first - to understand their situation and provide a first class service tailored to their specific needs.

Because we establish a one-to-one relationship with each client we are able to offer timely, individual advice on how to improve your business or personal finances.

As leading edge accountants we have developed the traditional bookkeeping, auditing, and accounting services into innovative client-focused services that provide not only all the reliable background support you would expect from a professional firm but also forward-thinking advice on how to improve your situation.

We have also developed a new range of accounting services to meet the needs of modern businesses, including a comprehensive business advisory service. Whether you need help with growing your business or advice on optimising your personal or family finances, we are here to help you get the best results.

 
By Didier Delmer
Published on 4/09/2007
 

On 24 August, France's Minister for the Economy, Finance and Employment announced the reform of the research tax credit, as it will be laid down in the 2008 Finance Bill, as well as the creation of academic start up companies.

The method for calculating the research tax credit will be simplified.


Tax Credit on R & D Expenses and Research Expenditure in France

From now on, the calculation will be carried out solely with regard to the volume of expenditure. Companies will be eligible for 100% of their research expenditure.

The rate of the tax credit is 30% for R&D expenses up to €100 million and 5% beyond that. For businesses that are claiming this credit for the first time and for those which have not claimed it in the last five years, the rate is 50%. In total, €2.7 billion will be allocated to support businesses in their R&D projects.

The status of innovative start up company will be extended to academic start up companies. Small and medium sized businesses which are less than eight years old, which focus on a new activity and 15% of whose expenditure is dedicated to research are provided with numerous tax breaks as a result of the status of innovative start up company. The objective is to extend the benefits of this status to academic start up companies.

This is subject to the following conditions :

- at least 25% of the academic start up company must be directly managed or held by a student, by an individual who has been awarded a master’s degree or doctorate in the last five years, or by an individual engaged in teaching or research activities;

- the activity of the company must focus in the main on promoting research work, where the conditions for the implementation of this work will be set down in an agreement between the company and the higher education establishment.

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