Research & Development (R&D) Tax Credits are available to pharma and biotechs to incentivize drug development and clinical research in countries around the world
In this article, we will discuss French R&D tax credit program, which is part of local government strategy to boost innovation in drug development and support R&D activities in the private sector. First, a bit of information about Precision for Medicine (PFM). We are more than just a Contract Research Organization and have a comprehensive suite of capabilities to support the spectrum of biopharmaceutical companies’ needs across the drug development lifecycle. We are excited to share later on in this article what services we can provide locally in France, which will help Sponsors (Biotech and Pharma) take advantage of the FR R&D tax credit program.
Disclaimer: PFM prepared this article for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors before engaging in any FR tax credit applications.
Insights into the FR R&D Tax Credit Program
Now, let’s dive back into the information we have to share. FR Biopharma companies are considered a critical hub of innovative drug development, and the FR’s R&D tax relief program, also referred as to the Crédit d’Impôt Recherche (CIR) is one of the most generous fiscal incentives worldwide with the aim to support drug development innovation conducted in the country. Indeed, R&D expenses can be claimed on activities performed throughout the drug development process.
The French Ministry of Research and Innovation has a very helpful website that explains how the process works (here) and issues a CIR guide on an annual basis assisting claimants in accurately selecting eligible activities and their associated costs.1 With regards to its generosity, the CIR tax credit rate is settled at 30% of eligible expenses up to 100 M€, and 5% above this threshold for research-based French companies, who are subject to corporate tax in France. CIR popularity is also correlated to the diversity of eligible expenses that can be annually included, from R&D staffing costs to subcontracted R&D to public and CIR-accredited research organizations.
PFM CIR Accreditation
As the first biomarker-driven clinical development CRO, PFM is highly engaged in innovative research and development and has obtained CIR accreditation approval for several of its EU-based entities (France, Spain, Italy, Poland, Germany, Hungary). This French approved accreditation enables our FR sponsors to lower their costs of innovation by recovering generated in R&D activities costs outsourced to Precision for Medicine EU entities. If you wish to learn more about PFM CIR-accredited entities, please click here.
FR SMEs eligible for CIR refund
Unlike large companies that must deduct the amount of their CIR from their corporate income tax, SMEs, when the criteria provided by the European definition are met (less than 250 employees and less than 50M€ Turnover or less than 43M€ Balance), can perceive CIR amounts as a cash refund.
If you are an SME, as defined by the European Commission, and want to claim your R&D tax credits as a refund, we encourage you to learn more about this here on their website.
“As a leading FR CRO, Precision for Medicine is exceptionally positioned to support our FR BioPharma companies, allowing them to benefit from advantageous local R&D incentives”
— Andrea Cotton-Berry, Global Head, Strategic Development US, EU, APAC
FR Based Services available from Precision for Medicine
Providing customized CRO solutions from late pre-clinical stage all the way through post-launch clinical trials, Precision for Medicine offers a unique partnership to promote innovation in France, prioritizing R&D activity development locally and maintaining close collaboration with FR R&D centers of excellence. Below is a list of available services based out of the FR.
FR-based Clinical Trial Research Services
· Study Project Management · Clinical Operations/Site Monitoring · Data Management · Drug Safety · Biostatistics
Please note, R&D tax credit programs are available in European Union and North American countries where Precision for Medicine also operates laboratory and clinical trial services.
Collaborate with a FR-based Partner
For innovative BioPharma companies where you want to tap into FR R&D tax credits, it’s also critical to work with a partner with services and staff in FR. This is where PFM can support your drug development innovation. To learn how Precision can support your efforts, please contact our team here.
1. Guide du credit d’impôt recherche. https://www.enseignementsup-recherche.gouv.fr/sites/default/files/2021-12/guidecir2021-15502.pdf. Accessed Jan 10, 2023.
Estelle Roger is a senior program manager at Precision Medicine Group and supports strategies related to public funding of research and innovation. With more than 5 years building and managing R&D Tax incentives strategies for both CROs and pharmaceutical industries, Estelle’s expertise covers a meaningful panel of R&D tax relief regimes across North America and Europe.
Precision for Medicine is part of the Precision Medicine Group, an integrated team of experts that extends Precision for Medicine’s therapeutic development capabilities beyond approval and into launch strategies, marketing communication, and payer insights. As one company, the Precision Medicine Group helps pharmaceutical and life-sciences clients conquer product development and commercialization challenges in a rapidly evolving environment.