R&D tax credit & Innovation Tax Credit agreements are relative to sub-contracted R&D. In the French scheme, when a contractor sub-contracts part of his R&D, the expense only qualifies if the subcontractor is agreed to R&D or Innovation Tax Credits. Companies can obtain the agreement applying to the relevant Ministry: R&D or Industry. The application must demonstrate the applicant’s ability to perform eligible R&D or Innovation project by presenting activities run or achieved in the last 12 months.
Every organization willing to get such an agreement can apply. There are different types of agreements for different eligible activities.
For R&D Tax Credit, these organization must apply for the agreement to the Ministry of Higher Education and Research:
The agreement is automatically granted for public research organizations. If the R&D Tax Credit agreement is granted, the Innovation Tax Credit Agreement can be automatically granted upon request. R&D & Innovation Tax Credit Agreement can be applied for in a unique procedure.
For Innovation Tax Credit, the organizations must apply for the agreement to the Ministry of Industry:
An agreement is also requested for collection design in textile & leather sector.
The application can be made online on the Public Services website. It can also be made by mail, but the delays are longer.
For the agreements, the relevant Ministry conducts a technical expertise. The structure of the justification report is similar to a R&D / Innovation Tax Credit claim.