Deciphering the CIR rescript

The Research Tax Credit (Crédit d'Impôt Recherche - CIR ) is a tax incentive created to encourage French companies to invest in research and development (R&D). Since its launch in 1983, the CIR has become a pillar of the French economy, benefiting over 25,000 companies every year.

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In view of its complexity and the financial stakes involved, the CIR rescrit procedure has been introduced. It offers companies legal certainty as to the eligibility of their R&D projects. This guide will explain what a CIR rescrit is, its importance, and how companies can use it to optimize and secure their research tax credit.

Definition: what is a CIR tax rescript procedure?

Tax rescript for the Research Tax Credit (CIR) is a procedure that enables a company to ask the tax authorities for their opinion on the eligibility of its research and development (R&D) projects for the CIR.

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It is therefore a procedure for securing declarations.

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Thanks to this approach, the company receives an official and formal interpretation of the application of specific tax rules to its R&D activities.

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By filing a rescript, companies can obtain assurance that their projects comply with CIR eligibility criteria. This avoids surprises in the event of subsequent tax audits.

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However, even in the event of a favorable opinion, a CIR rescript does not rule out a check on the accounting elements of the CIR declaration to be made by the company.

How to qualify for the Research Tax Credit?

To be eligible for the Research Tax Credit (Crédit d'Impôt Recherche - CIR), a company must incur research and development (R&D) expenditure. These expenses must meet specific criteria.

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Eligible activities must resolve technical problems or scientific uncertainties. Current knowledge must not allow for obvious solutions. The work must be innovative and not simply follow or adapt existing technologies.

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To be eligible for the CIR, work must be carried out by qualified personnel. Often, these are PhDs, engineers, or other profiles with an equivalent technical level. It should be noted that the CIR can facilitate the hiring of young PhDs.

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Eligible expenses may include salaries, overheads, depreciation and subcontracting costs. Subcontracting must be to approved public or private bodies.

What are the advantages of the CIR rescript?

Using the CIR rescript in the context of the Research Tax Credit (Crédit d'Impôt Recherche - CIR) offers a number of important advantages for companies.

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Firstly, it provides greater legal certainty. By receiving official confirmation from the tax authorities as to the eligibility of their R&D projects before declaring their expenditure, companies can avoid the risk of any subsequent tax reassessment.

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Secondly, the rescript promotes predictability. It enables companies to plan their R&D investments with a better view of the financial support they will receive via the CIR. In addition to increasing the scope of the CIR (by including in the CIR projects or expenditure that would not have been included without prior official feedback from the authorities), the rescrit also enables more efficient management of cash flows and project budgets.

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Thirdly, rescrit can increase investor confidence. Companies that secure their tax position through rescrit demonstrate a serious commitment to compliance and rigorous management. This is an asset when seeking external financing.

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Last but not least, rescripts can speed up the process of obtaining the CIR. By clarifying upstream the eligibility of expenses, the review process by the tax authorities can be speeded up as soon as the declaration is submitted. This means faster access to the expected tax benefits.

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Which companies can file a CIR rescript?

All companies, whatever their nature or size, can apply for a CIR rescript if they meet the CIR eligibility criteria.

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There are no sector restrictions. Whether the company is in the technology, pharmaceutical, agricultural or even creative industries, it can claim the CIR rescript.

How do I apply for a CIR in France?

To apply for a rescritCrédit d'Impôt Recherche (CIR ) in France, companies must follow a structured procedure that includes several key stages:

File

The content of the CIR rescript varies according to your request.

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To check your eligibility, you need to submit a technical dossier. This file must include the state of the art, the scientific barriers, the experimental approach and the work carried out with those responsible.

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This file can be requested by the administration up to 3 years after the CIR declaration.

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If you are seeking to validate expenses, the rescript must also detail these expenses.

Delay

The rescript request must be submitted no later than six months before the deadline for the Research Tax Credit (RTC) declaration for the fiscal year concerned.

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This allows you to obtain a response from the tax authorities before finalizing your tax return.

Deposit

The request must be sent to the Public Finance Department (Direction des Finances Publiques - DGFiP) on which the company depends.

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Companies must ensure that all information provided is accurate and complete. This avoids any delay or need for clarification that could impact on the application processing time.

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Once the request has been submitted, the administration has three months to respond. If no response is received within this period, the opinion is deemed favorable. This gives the company a degree of certainty when declaring its tax credits.

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Dynergie, the firm that helps you file CIR rescripts

Dynergie is a referenced CIR/CII consultancy and can help you set up your rescrit to secure your CIR.