The French tax authorities have very recently amended their administrative doctrine on the research tax credit (CIR).BOFIP BOI-BIC-RICI-10-10-20-30-20140404 of April 4, 2014
This new instruction calls into question the possibility for subcontracting companies approved by the French Ministry of Higher Education and Research (MESR) to include in their CIR declarations research and development projects that are not valued by their private French customers, even if the latter expressly waive this right or are capped.
It thus repeals the administrative doctrine of February 8, 2000, which stipulated that, in cases where the private customer did not benefit from the CIR itself, the company providing the services could include the corresponding sums in the basis for calculating its own CIR. It also neutralizes recent case law in this area.
This position, applicable immediately and therefore a priori to projects carried out in 2013, jeopardizes the sustainability of the CIR for our sector and represents an increased risk of adjustment for all approved subcontractors.
Non-approved companies are not affected by the administration’s position.
To avoid the negative effects of this new doctrine, Syntec Numérique recommends that its members forego CIR approval.
A working group of Syntec Numérique’s Tax Commission is preparing a response on the subject. For further information, please contactAnne-Dauphine Cambournac.
