"We support private and public sector players by leveraging our unique expertise in all areas of public funding. Financing your project is a major challenge: what if we overcome it together?
The Research Tax Credit (RTC) is an essential funding tool for innovative companies. It is calculated on the basis of R&D expenditure incurred by the company during the calendar year, regardless of the closing date (30% of R&D expenditure for an initial tranche of up to €100 million).
Created in 1983, the RTC, or Research Tax Credit, is a tax scheme designed to encourage research and development (R&D) in France. The scheme is available to industrial, commercial and agricultural companies subject to corporation tax in France and enables 30% of expenditure on R&D activities to be reimbursed immediately or in the form of a claim.
In order to be eligible for the scheme, the project must meet the following five criteria:
Eligible expenses that may be included in the calculation of the French Research Tax Credit (CIR) are as follows:
The following categories are no longer included in the CIR tax base:
We schedule a meeting to discuss your ongoing R&D projects in order to assess their eligibility according to the criteria presented.
Once the eligible projects have been selected, we calculate all associated expenses according to the items presented.
We compile the technical and financial justification file presenting the selected projects for year N along with the valued expenses.
In the event of a request for additional information or a tax audit, we will assist you until you obtain your RTC.
FRS will assist you throughout the entire process, from the selection of your projects to obtaining your RTC amount.
Has the Tax Administration challenged some of your R&D tax credit expenses?
In 2020, a company we had been supporting since 2017 received a request for additional information. Following review, the Tax Administration challenged certain public subcontracting expenses, considering that the work did not demonstrate sufficient scientific or technical originality. We demonstrated that the services provided were essential to the resolution of technical uncertainties within the selected eligible projects. As part of a further review procedure, our technical and financial analysis led to the full validation of the disputed expenses.
Are you confident that all your eligible R&D activities are properly captured in your CIR ?
Our first meeting with a new client is dedicated to a comprehensive review of their R&D activities, including human and material resources involved, documentation practices, and valuation methodologies. In several cases, including clients previously supported by other advisors, we identified under-optimised scopes and inappropriate costing methods. By restructuring the R&D perimeter and aligning it with CIR eligibility rules, we significantly increased the declared eligible base — in one case resulting in a 100% increase in the CIR amount.
Are you facing a tax audit or a reassessment proposal ?
Some clients contact us during tax audits after receiving reassessment proposals challenging their CIR declaration. In these situations, we take over the technical and financial substantiation of the R&D activities, including the reconstruction of project documentation, eligibility analysis, and justification of expenses. This work allows us to secure the eligible scope and, where appropriate, defend or restore the CIR initially claimed. Several clients have retained our services on a long-term basis following such interventions.
Do you claim your CIR independently and have received a request for additional information ?
One of our clients called on our services following a request for additional information from the tax administration. The lack of technical documents substantiating the expenses was impeding the reimbursement of the claimed RTC (submitted independently by this client). We therefore drafted all the technical justifications without being involved in project selection nor valuation. Having nevertheless identified errors in this phase, we submitted them to the client for correction. The compiled file along with the implemented corrections enabled us to secure the claimed RTC. The examination of the request for additional information enabled the client to obtain the RTC.
Are you operating internationally and looking for a single partner to manage your R&D tax incentives ?
FRS operates across several European countries, supporting multinational groups in the management and optimisation of their R&D tax incentives. Our expertise covers notably France, Spain, the United Kingdom, and Poland, allowing us to ensure a consistent and secure approach across different national tax frameworks. This multi-country coverage enables our clients to centralise the management of their innovation incentives with a single partner, while ensuring full compliance with local regulations and optimisation opportunities specific to each jurisdiction. As a result, many international groups trust FRS to coordinate their R&D tax credit strategies across Europe, particularly where operations are spread across multiple entities and countries.
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