Exceptional corporate tax reduction for research payments and subscriptions to innovative SMEs in 2005

Article 21 of the Act of 26 July 2005 for confidence and modernisation of the economy creates a corporate tax reduction equal to 65% of payments made between 16 March and 31 December 2005 to public research or higher education institutions, non-profit research bodies or innovative SMEs (research spending of at least 15% of expenses, fewer than 250 employees), and to 25% of subscriptions to the capital of such SMEs or to innovation investment funds over the same period. The reduction is set against the tax for the first financial year ending on or after 31 December 2005 and may not exceed 2.5% of the tax due for the last financial year ended before 16 March 2005. The article was introduced by the Government during the debate.