R&D TAX INCENTIVE SUPPORT: France - OECD.org

0 downloads 119 Views 3MB Size Report
R&D TAX INCENTIVE SUPPORT: France. Public support for business R&D: the mix of direct funding and tax relief. Fi
R&D TAX INCENTIVE SUPPORT: France Public support for business R&D: the mix of direct funding and tax relief

Figure 1. Direct government funding of business R&D and tax incentives for R&D1, 2013 As a percentage of GDP %

Indirect government support through tax incentives

Direct government funding of BERD

Data on tax incentive support not available

0.45 0.40

Indirect government support to business R&D, 2006 (or nearest year, where available)

0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00

12







Tax Incentive Support for Business R&D in OECD Countries – France

Trends in government support for business R&D

Figure 2. Direct funding of business R&D and tax incentives2 for R&D, France, 2000-13





 

  

Tax Incentive Support for Business R&D in OECD Countries – France

Design of R&D tax incentive support

Figure 3.1. R&D tax incentive schemes: France compared to OECD+ economies, 2015 Features of expenditure-based R&D tax incentive provisions FRANCE Instruments: Volume-based R&D tax credit (Crédit d'Impôt Recherche: CIR) Social security exemption for young innovative enterprises (JEI) and university enterprises (JEU) CIR credit rate: 30% (up to EUR 100 million of eligible R&D), 5% (above threshold) SSC exemption (JEI/JEU): 100% for a period of up to 8 years Corporation income tax (CIT) rate: 4 34.43% (CIT gradually reduced from 37.76% in 2000 to 36.43%, 35.43%, 34.95% and 34.43% in 2001/-02/-05/-06) Types of tax relief schemes used in OECD and other major economies Number of schemes

FRA

Note: Instruments used by France highlighted in red. There are some countries with more than one scheme.

Tax Incentive Support for Business R&D in OECD Countries – France







Figure 3.2. Design of R&D tax incentives: France7 compared to OECD+ economies, 2015 Eligible expenditures within scope of tax relief

R&D labour

Median8 OECD+ tax incentive

Crédit d'Impôt Recherche

JEI/JEU scheme









Subcontracted, collaborative R&D



Materials





Overhead





Machinery and equipment 

Intangibles Buildings and land



Depreciation

Number of schemes subject to relevant provisions All enterprises

Refundability of unused Refundability credits (payable credit)

25

9 Indefinite

Carry-over provision Carry-over

Threshold/Ceiling Thresholds and ceilings

14

SMEs

Refund wage system

4

8

Limited(mean: 8 yrs., median: 5 yrs.)

Not applicable

(3 years, 16 then refund)

8

19

8

27

Preferential treatment of SMEs Special treatment SMEs/young firms

33 No

13 Yes

Number of schemes

Note: Instruments used by France highlighted in red. Some countries have more than one separately identified incentive scheme.

Tax Incentive Support for Business R&D in OECD Countries – France

Tax subsidy rates on business R&D expenditure

Figure 4. Implied tax subsidy rates on R&D expenditures10, 2015 B-Index country distribution, by firm size and profit scenario 0.50 FRA FRA

FRA FRA

0.40

1 minus B-index

ESP

0.30

ESP

FRA

FRA

0.20

0.10

0.00

NZL

NZL

ITA JPN NZL ITA, JPN, NZL

ITA NZL ITA, NZL

-0.10 Large/Profitable

SME/Profitable

Large/Loss-making

12

SME/Loss-making

Tax Incentive Support for Business R&D in OECD Countries – France

What is the impact of government support for business R&D?

Figure 5. Business R&D intensity and government support for business R&D, 2013 Volume of tax support to business R&D, Millions USD PPP, 2013 No incentive x No data available

USD 75 million

USD 2 500 million

USD 250 million

4.0

x JPN

3.0

BERD, as % of GDP

KOR

ISR

3.5

2.5

FIN

SWE

CHE

2.0

DEU

0.5 0.0

AUS EST ESP NOR CZE

ITA NZL SVK POL BRA x TUR MEX ZAF GRC CHL

0.00

0.05

0.10

FRA

ISL IRL

NLD

1.0

SVN AUT BEL

CHN

1.5

USA

DNK

HUN

CAN

RUS

GBR

PRT

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Total government support (direct and tax) to business R&D, as % of GDP 12

Tax Incentive Support for Business R&D in OECD Countries – France

Figure 6. BERD and public support for business R&D, France, 2000-2013 As a percentage of market-sector GVA

Tax Incentive Support for Business R&D in OECD Countries – France