The Innovation Tax Credit
Do you think you are innovative? Let’s find out!
Since 2013, the CII (Innovation Tax Credit) is a tax measure reserved for SMEs which constitutes an extension of the CIR (Research Tax Credit).
Who can benefit ?
SMEs (companies with less than 250 employees with a turnover <€50M and/or a total balance sheet <€43M) which offer a new product distinguishing itself from existing ones by superior performance (on a technical level, eco-design, ergonomics or its functionalities).
What can be declared/valued?
- Activities: design and production of prototypes or pilot installations.
- Base of the CII: personnel expenses, costs linked to patents and designs, costs of approved subcontractors, etc. within the limit of €400k.
Unlike the CIR, it is not necessary to have internal expenses to include subcontracting costs in the base.
Until December 31, 2022, 20% of eligible expenses were retained; this rate increases to 30% from January 1, 2023.
In the case of an SME jointly carrying out R&D and innovation activities, it is essential to clearly demarcate the boundaries between activities to optimize and secure the CIR and CII.
Flag has supported more than 100 companies in obtaining the CII since its beginnings.
Contact us to study your eligibility conditions.
Our teams are here to support you on the subject.
Flag, the one-stop-shop for financing innovation.