Young Innovative Company: ACOSS reverses its position
In our June 24 issue, we announced the publication by ACOSS of a June 22 circular limiting exemptions from employer contributions for JEIs to employees spending at least 50% of their time on research and development activities.
On October 20, 2015, URSSAF issued a press release announcing the publication of circular no. 2015-0000048, which cancels and replaces the circular of June 22: “The amendments concern the exemption available by law to employees insofar as the performance of their duties leads to direct involvement in the research and development project. As this level of involvement is not explicitly specified in the texts, it should be interpreted fairly and equitably”.
This historical notice discusses a change in ACOSS’s position affecting France’s Jeune Entreprise Innovante (JEI) scheme. The programme is relevant to eligible young companies carrying out research and development activities, including some digital businesses.
Tax provisions affecting innovative businesses can be complex and change significantly over time. Eligibility may depend on the relevant accounting period, the nature of technical work and supporting documentation. Software projects in particular should distinguish research uncertainties from routine development. Historical notices offer useful background, but companies should never apply an old interpretation automatically to a current declaration or investment decision.
