3 ms·

For fiscal reasons.

• ovi256 15y ago
  I wanted to share juicy anecdotes about a company I know that does this, but that would be counterproductive. Let's just say asking for tax discounts and credits because you do R&D (or you classify your software dev as R&D) is very usual in France. A key phrase to research if you want to know more is "JEI - jeune entreprise innovante".
  • sgentle 15y ago
    Huh, fascinating. My dilettante translation of the French Wikipedia entry: "The statute of Jeune Enterprise Innovante (JEI), created in the 2004 budget bill, applies to small to medium businesses (in the EU, that means <250 employees, <50mil turnover, <40mil assets). The businesses must be less than 8 years old with R&D representing at least 15% of their expenses." The benefits seem ridiculous. The article says they include exemption from revenue tax, payroll tax and an exemption from capital gains tax for associates (investors? not sure if I read that bit right). Seems like the Wikipedia article might be a bit out of date, though. A French government website had a different list of benefits not including anything about capital gains, but adding an exemption for property tax. Someone native should probably check my understanding, but it looks like you get a pretty sweet deal if you can convince the French government you're doing R&D.
    • tripa 15y ago
      Indeed you get a pretty sweet deal, and I know a few that do. But the R&D benefits aren't only for startups, most big companies try to fit all they can under CIR ("Crédit d'impôt recherche"—research tax exemption).