Research tax credit

Eligible expenses that may be included in the calculation of the CIR are as follows:

• Staff costs (researchers and technicians) allocated to R&D activities
• Depreciation of newly created or acquired assets or buildings used to carry out scientific and technical research operations
• Subcontracting costs (only to approved RTC service providers)
• Depreciation, costs of taking out, maintaining and defending patents and plant variety certificates
• Technology monitoring expenses
• Expenditure on standardisation

FRS will assist you throughout the entire process, from the selection of your projects to obtaining your RTC amount.

Has the Tax Administration rejected certain expenses from your RTC?

In 2020, a company we had been supporting since 2017 received a request for additional information. After analysis, the Tax Administration rejected public subcontracting invoices arguing that it was merely state-of-the-art. We proved that the services provided were an essential basis for the projects selected as eligible. Therefore, we sought a second opinion as part of a mediation process, and after further assessment, we obtained full validation of the expenses.

Are you certain that all your R&D expenses have been properly accounted for in your RTC?

The first meeting with a new client allows us to assess all of their R&D activities, as well as the eligible scope in terms of human and material resources dedicated to these activities. For one of our clients, previously assisted by another firm, we optimized the eligible scope by carrying out an extensive analysis of their activities and revising unsuitable valuation methods. Our client’s RTC amount was doubled as a result.

Is your tax audit going badly?

One of our clients had previously been assisted by another firm. During a tax audit, the findings led to an almost complete adjustment of the declared RTC amount. Unsure how to respond to the tax administration’s rectification proposal, the company called on our services. We took over the entire file (drafting of R&D projects and calculation of eligible expenses) to address the proposal. The resulting brief not only enabled our client to access the RTC previously claimed but also optimized it through our intervention. This client has trusted us with their RTC since 2011.

Do you claim your RTC yourself and have a request for additional information?

One of our clients called on our services following a request for additional information from the tax administration. The lack of technical documents substantiating the expenses was impeding the reimbursement of the claimed RTC (submitted independently by this client). We therefore drafted all the technical justifications without being involved in project selection nor valuation. Having nevertheless identified errors in this phase, we submitted them to the client for correction. The compiled file along with the implemented corrections enabled us to secure the claimed RTC. The examination of the request for additional information enabled the client to obtain the RTC.

Are you operating internationally and looking to have your RTC managed by a single company?

FRS operates an office in Spain, where an international company entrusted us with managing the Spanish equivalent of its RTC. Pleased with our performance, we now manage the RTC for the client’s French entity. This pattern has been replicated for several of our international clients, notably in Spain and the UK.