In this article, we will discuss French R&D tax credit program, which is part of local government strategy to boost innovation in drug development and support R&D activities in the private sector. First, a bit of information about Precision for Medicine (PFM). We are more than just a Contract Research Organization and have a comprehensive suite of capabilities to support the spectrum of biopharmaceutical companies’ needs across the drug development lifecycle. We are excited to share later on in this article what services we can provide locally in France, which will help Sponsors (Biotech and Pharma) take advantage of the FR R&D tax credit program.
Disclaimer: PFM prepared this article for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors before engaging in any FR tax credit applications.
Now, let’s dive back into the information we have to share. FR Biopharma companies are considered a critical hub of innovative drug development, and the FR’s R&D tax relief program, also referred as to the Crédit d’Impôt Recherche (CIR) is one of the most generous fiscal incentives worldwide with the aim to support drug development innovation conducted in the country. Indeed, R&D expenses can be claimed on activities performed throughout the drug development process.
The French Ministry of Research and Innovation has a very helpful website that explains how the process works (here) and issues a CIR guide on an annual basis assisting claimants in accurately selecting eligible activities and their associated costs.1 With regard to its generosity, the CIR tax credit rate breaks down as follows:
CIR popularity is also correlated to the diversity of eligible expenses that can be annually included, from R&D staffing costs to subcontracted R&D to public and CIR-accredited research organizations.
As the first biomarker-driven clinical development CRO, PFM is highly engaged in innovative research and development and has obtained CIR accreditation approval for several of its EU-based entities (France, Spain, Italy, Poland, Germany, Hungary). This French approved accreditation enables our FR sponsors to lower their costs of innovation by recovering generated in R&D activities costs outsourced to Precision for Medicine EU entities. If you wish to learn more about PFM CIR-accredited entities, please click here.
Unlike large companies that must deduct the amount of their CIR from their corporate income tax, SMEs, when the criteria provided by the European definition are met (less than 250 employees and less than 50M€ Turnover or less than 43M€ Balance), can perceive CIR amounts as a cash refund.
If you are an SME, as defined by the European Commission, and want to claim your R&D tax credits as a refund, we encourage you to learn more about this here on their website.
Providing customized CRO solutions from late pre-clinical stage all the way through post-launch clinical trials, Precision for Medicine offers a unique partnership to promote innovation in France, prioritizing R&D activity development locally and maintaining close collaboration with FR R&D centers of excellence.
Please note, R&D tax credit programs are available in European Union and North American countries where Precision for Medicine also operates laboratory and clinical trial services.
For innovative BioPharma companies where you want to tap into FR R&D tax credits, it’s also critical to work with a partner with services and staff in FR. This is where PFM can support your drug development innovation.
Learn how Precision can support your efforts.
1. Guide du credit d’impôt recherche. https://www.enseignementsup-recherche.gouv.fr/sites/default/files/2021-12/guidecir2021-15502.pdf. Accessed Jan 10, 2023.