Paris School of Economics - École d'Économie de Paris

Economics serving society

The Research Tax Credit

FOR COMPANIES AND ASSOCIATIONS

The Research Tax Credit
The Paris School of Economics has been recognised as a Public Utility Foundation with respect to the Crédit Impôt Recherche (Research Tax Credit) since November 2009.
In particular, any firm or association sub-contracting part of its Research and Development activities can establish a contract with the Foundation and profit from the following benefits:

  • The global ceiling of the budgets entrusted to the Paris School of Economics is 12 Million Euros per year per institution (the global ceiling of CIR expenditures is 100 Million Euros)
  • Expenditure sub-contracted to the Foundation is tax-free & counted as double in the CIR base
  • All participants (including first-time ones) benefit from a tax-credit rate of 30% (and 5% over the 100 M ceiling)

Example
A firm entrusts one Million Euros per year to PSE over three years. In the first year, declaring 2 Million Euros in the sub-contracting section of its CIR dossier, the firm benefits from a tax-credit rate of 30% - i.e. 600 000 Euros of tax reduction. In the second and third years, the tax-credit rate applied will also be 30%, giving 1 200 000 Euros of tax reduction. In total, 1.8 of the 3 Million Euros spent will be deducted from tax payments, and the project will only cost the firm 1.2 Million Euros.

To find out more about the tax benefits of the CIR: