The Crédit d'Impôt Recherche (CIR) is France's primary R&D tax credit for companies performing qualifying research. It reduces corporate tax (and can generate cash outcomes in defined situations) based on eligible R&D spend.
Eligibility is closely tied to Frascati-style research and experimental development. French practice places heavy weight on the technical dossier that explains the state of the art, uncertainty, and experimental approach.
France also operates related innovation incentives (such as the innovation credit for certain SMEs) that are distinct from CIR. Do not conflate them when scoping a claim.
Who qualifies
- Companies liable to corporate tax in France that incur eligible R&D expenditure.
- Industrial, software, biotech, and deep-tech companies are frequent claimants when projects meet the research test.
- Subcontracting to approved organizations can affect the expenditure base under specific rules.
Eligible activities
- Fundamental research, applied research, and experimental development meeting French CIR criteria.
- Staff costs for researchers and technicians allocated to eligible projects, plus other statutory cost categories.
- Certain subcontracted research under approval and capping rules.
Typically not eligible
- Routine engineering and standard software builds without research uncertainty.
- Market studies, design without R&D character, and commercial prototyping outside the research definition.
- Costs outside the CIR expenditure base even if strategically important.
How a claim works
- 1
Identify CIR-eligible projects
Separate true research from product delivery; document the scientific or technical uncertainty.
- 2
Build the technical dossier
Explain prior art, objectives, experiments, and results in the format French reviewers expect.
- 3
Compile the expenditure base
Apply CIR rules to staff, depreciation, operating costs, and subcontracting.
- 4
File with corporate tax
Submit required CIR declarations within applicable deadlines.
- 5
Defend scientific and tax review
Respond to DGFiP or scientific inquiries with coherent technical and cost support.
What to document
- A structured technical file per project (state of the art, uncertainty, methodology, results).
- Time tracking and payroll evidence for researchers and technicians.
- Lab notebooks, prototypes, test protocols, and publications where relevant.
- Contracts with research organizations and proof of approvals when required.
Common pitfalls
- Thin technical dossiers that describe products rather than research.
- Confusing CIR with the separate innovation credit for SMEs.
- Weak time allocation between R&D and non-R&D duties.
- Subcontracting costs claimed without meeting approval or capping rules.
Questions to ask an advisor
- “Who writes and reviews the CIR technical dossier?”
- “How do you handle scientific review risk with DGFiP?”
- “How do you distinguish CIR from innovation-credit scopes?”
- “What is your fee model for preparation versus defense?”
Frequently asked
What is CIR?
CIR is France's Crédit d'Impôt Recherche, a research tax credit on qualifying R&D expenditure. Confirm current rates and filing mechanics with official guidance.
Why is the technical file so important?
French CIR practice emphasizes proving research character through a detailed dossier. Weak technical files are a common review failure point.
Is this tax advice?
No. This explainer is educational. Confirm eligibility and current rules with DGFiP guidance and a qualified French adviser.