A measure in favor of research and development activities (R&D)

The RTC is annual, regardless of the date on which the financial year ends


The RTC rate is :

  • 30 % on research expenses not exceeding 100 million euros (or 50% in oversea departments)
  • 5 % on research expenses exceeding 100 million euros


Purpose of the RTC :

  • Deductible from the income tax
  • The excess tax credit is carried on the next 3 years. After this period, the amount of tax credit that has not been used may be reimbursed
  • An immediate refund is possible under certain conditions

Expenses eligible for the RTC :

  • Research operations within the European Economic Area included in taxable incomes


The following expenses are taken into account by the RTC :

  • Tax deductible depreciation related to R&D fixed assets, directly used for the research operations ;
  • Tax deductible depreciation related to patents ;
  • Wages of the R&D staff involved in the research activity ;
  • Operating expenses fixed to 50% of the gross salaries and 75% of tax deductible depreciation above mentioned ;
  •  Subcontracted R&D ;
  • Patent expenses related to registration, updating and any litigation cost ;
  • Technological survey expenses.


Ruling request :

The company may submit a request to French Tax Administration to confirm the eligibility of it’s expenses.

The ruling request must be made 6 months before the RTC compliance.

The answer must be given within 3 months, otherwise the tax ruling is deemed granted.


Co-Founder, Partner & Solicitor -
International Corporate Law & Litigation

Benoît, Delcade’s co-founder, is a Paris Bar lawyer and UK Solicitor (London).

Advisor for various embassies, working closely with the firm's team, Benoît offers his services to French and foreign companies requiring cross-cutting strategic and legal support in business law.

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