XXVII: Tax credit for research expenditure by industrial, commercial or agricultural companies

I.-A.-Industrial, commercial and agricultural companies taxed on the basis of their actual profits or exempt pursuant to Articles 44 sexies, 44 sexies A, 44 octies A, 44 duodecies and 44 terdecies to 44 septdecies may benefit from a tax credit in respect of expenditure invoiced by research and knowledge dissemination organisations under a research collaboration contract concluded until 31 December 2025.

B.-The research organisations mentioned in A meet the definition given by European Commission Communication No. 2014/ C 198/01 on the framework for State aid for research, development and demonstration activities. B.-The research organisations mentioned in A meet the definition given in European Commission Communication No. 2014/C 198/01 on the framework for State aid for research, development and innovation. They are approved by the Minister for Research in accordance with the procedures defined by decree. They are not at arm's length, within the meaning of Article 39(12), from the companies mentioned in A of this I.

C.-The contract mentioned in the same A fulfils the following conditions:

1° It is concluded between the company and the research and knowledge dissemination organisations prior to the start of the collaborative research work;

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2° It provides for research expenditure to be invoiced by research organisations at cost price;

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3° It sets out the common objective pursued, the division of research work between the company and the research organisations and the procedures for sharing risks and results. The results, including the intellectual property rights, may not be attributed in their entirety to the company;

4° It stipulates that the expenditure invoiced by the research organisations in respect of the research work may not exceed 90% of the total expenditure incurred in carrying out the operations provided for in the contract;

> The research organisations have the right to charge the research organisations for the costs incurred in carrying out the operations provided for in the contract. 5° The research organisations have the right to publish the results of their own research carried out as part of this collaboration. D.-The expenditure referred to in A relates to research carried out in the European Union or in a State party to the Agreement on the European Economic Area that has signed an administrative assistance agreement with France to combat tax evasion and avoidance.

E.-The research operations are carried out in the European Union or in a State party to the Agreement on the European Economic Area that has signed an administrative assistance agreement with France to combat tax evasion and avoidance. E.-Research operations are carried out directly by the research organisations with which the companies have signed a collaboration contract.

By way of derogation, these organisations may use the services of their own research centres. By way of derogation, these organisations may call upon other research and knowledge dissemination organisations, approved under the same conditions, to carry out certain work required for these operations, where this is provided for in the contract.

II.-A.-1. The expenses invoiced by the research and knowledge dissemination organisations for carrying out the scientific and technical research operations provided for in the contract referred to in I are taken into account in the tax credit base referred to in I.

These expenses are reduced, where applicable, by the amount invoiced by the research and knowledge dissemination organisations for carrying out the scientific and technical research operations provided for in the contract referred to in I.

. This expenditure is reduced, where applicable, by the proportion of public aid received by these same organisations for these same operations.

>. 2. The invoiced expenditure referred to in 1 of this A is included in the basis for calculating the company's tax credit, up to an overall limit of €6 million per year.

. 3. The expense relating to the invoiced expenditure referred to in the same point 1 is taken into account when determining the company's taxable income for income tax or corporation tax purposes, under the conditions of ordinary law.

. B.-1. Public aid received by companies in respect of operations giving entitlement to the tax credit referred to in I is deducted from the basis for calculating this tax credit, whether it is definitively acquired by the company or is repayable. Where this aid is repayable, it is added to the bases for calculating the tax credit for the year in which it is repaid to the organisation that paid it.

2. The sums referred to in A of this II may not be taken into account both in the basis for calculating the tax credit and in the basis for calculating another tax credit or another tax reduction.

III.-The rate of the tax credit is set by the tax authorities. III - The tax credit rate is 40%. It is increased to 50% for companies that meet the definition of micro, small and medium-sized enterprises given in Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

IV. IV.-When the partnerships referred to in Articles 8 and 238 bis L or the groupings referred to in Articles 239 quater, 239 quater B, 239 quater C and 239 quater D are not subject to corporation tax, the tax credit may, subject to the last paragraph of I of Article 199 ter B bis, be used by the partners in proportion to their rights in these companies or these groupings.

V.-A decree defines the conditions for application of this article. It will adapt the provisions to the case of financial years of unequal length or which do not coincide with the calendar year.

VI. VI -The tax credit is subject to compliance with the notification-exempt framework scheme no. SA. 58995 relating to aid for research, development and innovation for the period 2014-2023, taken on the basis of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.