Collaborative Research Tax Credit (CICo)
Verified 01 May 2023 - Directorate for Legal and Administrative Information (Prime Minister)
A company that has a contract with a research and knowledge dissemination organization (ORDC: titleContent) is eligible for a collaborative research tax credit (CICo). The tax credit varies between 40% and 50% the amount of expenses invoiced according to the size of the company.
The company who fills all of the following conditions eligible for the collaborative research tax credit:
- It entered into a collaboration contract with a ORDC: titleContent between 1er January 2022 and December 31, 2025.
- She has an activity industrial, commercial or agricultural
- It is subject to a actual taxation system automatically or on option (real normal or simplified, NBC, BIC).
- If it is tax exempt, it must fall into one of the following categories:
- Young innovative company
- Company created for the recovery of a company in difficulty
- Company located in one of the following areas:
- Regional aid area
- Free-urban zone / entrepreneur territory
- Employment pool to be revitalized
- Defense Restructuring Area
- Free zone of activity of the overseas departments
- Rural Revitalization Area
- Urban basin to be dynamized
- Priority Development Area
The collaboration contract must meet all of the following conditions:
- It must have been concluded between the company and the ORDC: titleContent front collaborative research has begun.
- It must provide that research expenses are invoiced to cost of production.
- He has to fix the common objective sued and the allocation of research work between the company and the ORDC.
- He has to set the sharing arrangements the risks and outcomes between the company and the DROs. Not all scores can be attributed to the company.
- It must provide that expenditure invoiced by the RDCAs may not exceed 90% of total expenditure for the performance of the operations provided for in the contract.
- It provides that RDCAs may publish their own research done in collaboration with the company.
The expenses taken into account for the calculation of the OIC are as follows:
- Equipment Expenses for carrying out research operations (e.g. tools needed for analyzes)
- Staff costs for researchers and research technicians engaged in scientific and technical research operations
- Operating expenses for carrying out research operations (examples: current charges, payment of interest on a loan)
They must relate to research that takes place within the European Union or a Member State of the European Economic Area. That State must have concluded an administrative assistance agreement to combat fraud and tax evasion.
Warning
These expenses must be invoiced by the research and knowledge dissemination organization (RKO).
The scientific research operations for which the tax credit applies are:
- Activity of basic research participating in the analysis of natural and physical properties, structures and phenomena
- Activity of applied research to identify possible applications of the results of basic research. It can also lead to new solutions enabling the company to achieve a predetermined objective
- Experimental development carried out with prototypes or pilot installations. Its purpose is to gather all the information necessary to provide the technical elements of the decisions with the aim of producing new materials, devices, products...
To benefit from the collaborative research tax credit, the company must file a return. The form to be used depends on the company's tax system: it is subject to business tax (SI) or income tax (IR):
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Company subject to SI
The company must file certain documents with the company Tax Service (SIE) on which it depends.
The documents to be sent are as follows:
- Declaration No 2069-A-SD :
- Balance Statement 2572 :
Business Tax (SI) - Statement of Balance
FYI
In a group of businesses, it is the parent business that files the documents for each daughter business concerned.
Company subject to IR
The company must file the Declaration No 2069-A-SD with its income statement (BIC - industrial and commercial profits or NBC - non-commercial profits) to the company tax department (SIE) on which it depends:
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Micro-company and SMEs
The company must have less than 250 employees and less than €50 million or an annual balance sheet of less than €43 million.
The company benefits from a tax credit equal to 50% amounts charged by ORDC: titleContent up to €6 million per year.
It is calculated based on expenditure incurred during thecalendar year. Where the company closes its financial year in the course of the year, the expenditure taken into account shall be that incurred during last full calendar year.
Example :
One company closed its fiscal year as of September 30, 2024. The tax credit will be calculated on expenses incurred in 2023 (from 1er January 2023 to December 31, 2023).
FYI
The amount of expenses invoiced is diminished the amount of public aid received by the research organizations and the company for these operations.
The unused tax credit represents a claim State which may be used by the company for Maximum 3 years to pay his taxes.
A new company (just created) or a young innovative company (JEI) may, if it so wishes, request the immediate repayment of the claim.
Other companies
The company benefits from a tax credit equal to 40% expenses invoiced by ORDC: titleContent up to €6 million per year.
It is calculated based on expenditure incurred during thecalendar year. Where the company closes its financial year in the course of the year, the expenditure taken into account shall be that incurred during last full calendar year.
Example :
A company that ends its fiscal year on September 30, 2024, the tax credit will be calculated on expenses incurred in the 2023 fiscal year (from 1er January 2023 to December 31, 2023).
FYI
The amount of expenses invoiced is diminished the amount of public aid received by the research organizations and the company for these operations.
The unused tax credit represents a claim State which may be used by the company for Maximum 3 years to pay his taxes.
A new company (just created) or a young innovative company (JEI) may, if it so wishes, request the immediate repayment of the claim.
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