Young innovative or academic company (JEI - GAME)
Verified 01 May 2023 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Economy
A new company that invests in research and development (R&D) has the status of a Young Innovative company (JEI) or a Young University company (JEU). It may benefit from tax and social security exemptions. JEI status has been extended to GAMES that constitute a particular category of JEI.
Young Innovative company (JEI)
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Company created before January 1, 2023
To be a young innovative company (JEI), the company must meet the following conditions:
- Be an SME: it must employ less than 250 people and carry out a less than turnover€50 million or must have a total balance less than€43 million
- To qualify for social exemption: It must have been created since under 8 years (the company permanently loses JEI status in the year of its 8e birthday)
- To qualify for the tax exemption: It must have been created since under 11 years (the company permanently loses JEI status in the year of his 11th birthdaye birthday)
- It must carry out R&D expenditure representing at least 15%of charges. The calculation of this rate does not take into account the costs of disposals of shares or bonds, exchange losses and expenses incurred with other JIU carrying out R&D projects.
- Its capital must be held for 50% at least by one of the following persons or entities:
- Natural person
- Other IED held at least at 50% by natural persons
- Association or foundation recognized as being of public interest of a scientific nature
- Public research and teaching establishment or one of its subsidiaries
- investment business
- She has not been created as part of a concentration, restructuring, extension or take-over of existing activities
Company set up as of 1 January 2023
To be a young innovative company (JEI), the company must meet the following conditions:
- Be an SME: it must employ less than 250 people and carry out a less than turnover€50 million or must have a total balance less than€43 million
- It must have been created since then under 8 years to benefit from social and tax exemptions (the company permanently loses the status of JEI in the year of its 8e birthday)
- It must carry out R&D expenditure representing at least 15%of charges. The calculation of this rate does not take into account the costs of disposals of shares or bonds, exchange losses and expenses incurred with other JIU carrying out R&D projects.
- Its capital must be held for 50% at least by one of the following persons or entities:
- Natural person
- Other IED held at least at 50% by natural persons
- Association or foundation recognized as being of public interest of a scientific nature
- Public research and teaching establishment or one of its subsidiaries
- investment business
- She has not been created as part of a concentration, restructuring, extension or take-over of existing activities
Please note
The assessment of the 15% for a company operating one or more branches established in another Member State of theEU: titleContent or theEEE: titleContent must take into account research expenditure and expenses.
A company who wants to know if it meets the conditions to be a young innovative company (JEI) can send to the tax administration a request for an opinion.
This request must be made taking into account the model next:
Model request for opinion JEI status
It must be addressed by registered letter with acknowledgement of receipt or by direct delivery against discharge to the departmental directorate of public finance on which the company depends:
Who shall I contact
Exemption from income tax
An IED may benefit from a exemption from income tax equal to 100% during sound 1erprofitable year.
It can then benefit from a tax exemption on profits equal to 50% for the following financial year.
Warning
This exemption shall apply only to financial years during which the company meets the criteria to be a JEI.
Tax exemption on built properties
Municipalities and their public institutions for intercommunal cooperation (EPCI: titleContent) to own taxation may, on deliberation, decide to exempt buildings belonging to JEIs from their total share.
In order to obtain the exemption, the company must to make a declaration with the company tax office on which it depends:
Who shall I contact
This statement must be endorsed before 1er January of the first year during which it may benefit from that exemption.
It lasts 7 years.
Exemption from real estate contributions by companies
Municipalities and their public institutions for intercommunal cooperation (EPCI: titleContent) to own taxation may, on deliberation, decide to exempt JEI created before 31 december 2025.
This exemption relates to the share of the contribution to be paid by each municipality or EPIC with its own taxation system.
It lasts 7 years.
The company must submit a request for exemption for each establishment to the company tax department under which it is responsible:
Who shall I contact
The request has to be made on or before one of the following dates depending on the company's situation:
- The 2ndeworking day following 1er May of the previous year that for which exemption is sought
- In the case of establishment, change of operator or activity during the year: on 2e working day after 1er May of the following year creation or change. You must provide an interim return before 1er January of the year following the year of creation or change.
Is it possible to combine exemptions?
A JIE who benefits from the income tax exemption may also apply for the research tax credit (RIC).
However, she won't be able to benefit from it exemptions and benefits granted to the following companies:
- new company
- Company set up in an urban free zone (ZFU)
- Rural Revitalization Area (RRZ) company
- Company in a dynamic urban basin (BUD)
- Priority Development Area (PDA) company
If the JEI meets the conditions to benefit from one of these exemption schemes, the company will opt for for the JEI regime. This option can be taken at any of the following times:
- In the 9 months after the start of business
- In the First 9 months of the financial year in which the option is exercised
This option is irrevocable.
An innovative young company before 1er january 2023 may benefit from exemption from employer's social security contributions and family allowances.
This exemption applies to the share of remuneration of less than€7,862.40 paid to:
- Employees performing any of the following functions:
- Research engineer
- Technician
- R&D Project Manager
- Legal officer in charge of industrial protection and technology agreements related to the project
- Pre-competitive testing staff
- Agents of the company which are principally engaged in the following activities:
- Company Research and Development Project
- Performing prototype design operations or pilot installations of new products
For establishments created or abolished during the year, the annual limit of exempt contributions per establishment and per year is calculated in proportion to the elapsed time.
If, during a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question.
It also loses it for the following years as long as it does not meet all the conditions.
To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social contributions.
No prior declaration with the Urssaf is required to obtain exemption from social security charges.
The company applies itself the exemption by filling out the summary statement of contributions.
FYI
the exemption shall apply up to €219,960 by calendar year and by establishment.
Young University company (GAME)
To be a young university company, the company must meet the following conditions:
- Being an SME: it employs less than 250 people and carries out a less than turnover€50 million or has a total balance less than€43 million
- For social exemption : it has been created since under 8 years (the company permanently loses JEI status in the year of its 8eme birthday)
- For the tax exemption : it has been created since under 11 years (the company permanently loses JEI status in the year of his 11th birthdayeme birthday)
- It must be directed or held at least10% by persons belonging to one of the following categories:
- Student
- Graduated for less than 5 years from a master's or doctorate
- Person engaged in teaching or research activities
- She must have for main activity the exploitation of research work in which the managers or associates have participated in an institution of higher education (in the course of their education or in the performance of their duties). A contract must have been concluded with this establishment setting out the conditions for valuation
- Its capital must be held for 50% at least by one of the following persons or entities:
- Natural person
- Other IED held at least at 50% by natural persons
- Association or foundation recognized as being of public interest of a scientific nature
- Public research and teaching establishment or one of its subsidiaries
- investment business
- She has not been created as part of a concentration, restructuring, extension or take-over of existing activities
A company who wants to know if she meets the conditions to be a young university company (GAME) can send to the tax administration a request for an opinion.
This request must be made taking into account the model next:
It must be addressed by registered letter with acknowledgement of receipt or by direct delivery against discharge to the departmental directorate of public finance on which the company depends:
Who shall I contact
Exemption from income tax
A GAME can benefit from a exemption from income tax equal to 100% during sound 1erprofitable year.
It can then benefit from a tax exemption on profits equal to 50% for the following financial year.
Warning
This exemption shall apply only to financial years during which the company meets the criteria to be SET.
Tax exemption on built properties
Municipalities and their public institutions for intercommunal cooperation (EPCI: titleContent) to own taxation may, on deliberation, decide to exempt buildings belonging to GAMES from their total share.
In order to obtain the exemption, the company must to make a declaration with the company tax office on which it depends:
Who shall I contact
This statement must be endorsed before 1er January of the first year during which it may benefit from that exemption.
It lasts 7 years.
Exemption from real estate contributions by companies
Municipalities and their public institutions for intercommunal cooperation (EPCI: titleContent) may, on deliberation, decide to exempt young innovative companies created before 31 december 2022.
This exemption relates to the share of the contribution to be paid by each municipality or EPIC with its own taxation system.
It lasts 7 years.
The company must submit a request for exemption for each establishment to the company tax department under which it is responsible:
Who shall I contact
The request has to be made on or before one of the following dates depending on the company's situation:
- The 2ndeworking day following 1er May of the previous year that for which exemption is sought
- In the case of establishment, change of operator or activity during the year: on 2eme working day after 1er May of the following year creation or change. You must provide an interim return before 1er January of the year following the year of creation or change
Is it possible to combine exemptions?
A GAME that benefits from the income tax exemption may also apply for the research tax credit (RIC).
However, she won't be able to benefit from it exemptions and benefits granted to the following companies:
- new company
- Company set up in an urban free zone (ZFU)
- Rural Revitalization Area (RRZ) company
- Company in a dynamic urban basin (BUD)
- Priority Development Area (PDA) company
If the GAME qualifies for any of these exemption schemes, the company will opt for for the GAME diet. This option can be taken at any of the following times:
- In the 9 months after the start of business
- In the First 9 months of the financial year in which the option is exercised
This option is irrevocable.
A Game Created before 1er january 2023 may benefit from exemption from employer's social security contributions and family allowances.
This exemption applies to the share of remuneration of less than€7,862.40 paid to:
- Employees performing any of the following functions:
- Research engineer
- Technician
- R&D Project Manager
- Legal officer in charge of industrial protection and technology agreements related to the project
- Pre-competitive testing staff
- Agents of the company which are principally engaged in the following activities:
- Company Research and Development Project
- Performing prototype design operations or pilot installations of new products
For establishments created or abolished during the year, the annual limit of exempt contributions per establishment and per year is calculated in proportion to the elapsed time.
If, during a year, the company no longer meets one of the conditions required, it loses the benefit of the exemption for the year in question.
It also loses it for the following years as long as it does not meet all the conditions.
To qualify for the exemption, the employer must be up to date with its reporting and payment obligations of his social contributions.
No prior declaration with the Urssaf is required to obtain exemption from social security charges.
The company applies itself the exemption by filling out the summary statement of contributions.
FYI
The exemption shall apply up to €219,960 by calendar year and by establishment.
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- General Tax Code: Articles 44e-0a and sexies ATax exemptions
- Decree No. 2008-1560 of 31 December 2008 on the Convention linking a young innovative company and a higher education institution
- Decree No. 2004-581 of 21 June 2004 establishing an exemption from employers' social security contributions for young innovative companiesSocial exemptions for JEI
- Bofip-Taxes No. BOI-BIC-FIELD-80-20-20 relating to the exemption of JEI
- Bofip-Taxes n° BOI-letter000186-20140728- Model for request for an opinion under the Young Innovative company (JEI) scheme
- Circular Letter No 2009-091 of 8 December 2009 on the exemption of employers' contributions for GAMBLING (PDF - 0)
- Circular Letter No 2015-0000048 of 20 October 2015 on the exemption of young innovative companies from employer contributions (PDF - 0)
- Template request review GAME
Document template
- Model request for opinion JEI status
Document template