What is CIR?

The research tax credit is a tax measure that provides partial funding of the Research & Development (R&D) in the form of a refund or a corporate tax reduction.

The CIR and R&D outsourcing

Expenditure on research and development (R&D) outsourced to external service providers are eligible for the research tax credit (CIR).

Types of providers and agreements

Providers can be classified into two categories:

  • private firms or individual experts
  • public research organizations or institution of higher education


The providers of the first category (private companies or individual experts) must be authorized by the Ministry of Higher Education and Research (MESR). This authorization is to ensure that the provider has enough R&D potential to be a subcontractor.

The list of foundations, organizations and experts who have been authorized can be found on the website MESR.
Click here for more information.

EVELIA has received CIR authorization for 2012, 2013 and 2014.

CIR authorization has been renewed for 2015, 2016 and 2017.

Providers in the second category do not have to ask for authorization.

Calculation of CIR and limits

The R&D expenses that are eligible give right to different kinds of tax credit depending on the type of provider.

  • For private companies or individual experts, the invoiced amount of R&D works is considered eligible for the actual amount in the base of CIR to an overall limit of 10 million EUROs.
  • For public research organizations or educational institution, the charged amount in R&D is considered eligible for the double of this amount in the base of CIR to an overall limit of 12 million EUROs.

Note: The amounts and limits can be reduced if there is a dependency relationship between the company that benefits from tax credit and the provider. A dependency link between two entities exist when one holds directly or through an intermediary the majority of the share capital of the other. . .

How to take into account charged expenses

  • The payer has to ensure the eligibility of the work performed by the subcontractor.
  • He must also ensure that the subcontractor is authorized the year in which the work was performed and billed.
  • Invoiced amounts of R&D eligible to be considered under the year in which such amounts were invoiced
  • Invoiced amounts of R&D should be declared net of tax.

For more information: http://www.enseignementsup-recherche.gouv.fr/pid24835/credit-impot-recherche.html