Research tax credit: higher rates restricted and lowered to 40% then 35%, immediate refund focused on SMEs

Article 41 of the 2011 Finance Act amends the research tax credit (Articles 199 ter B and 244 quater B of the General Tax Code). Immediate refund of credits, temporarily generalised in 2009 and 2010, is made permanent for SMEs, young innovative companies, new companies and companies in difficulty. The higher rates granted to companies entering the scheme, previously 50% then 40%, are set at 40% in the first year and 35% in the second, and restricted to companies with no link to another that benefited from the credit in the past five years. The flat-rate operating costs allowance is recalculated and consultancy fees paid as a percentage are deducted from the base. The higher rates were abolished for expenses incurred from 2013.