Daily Tax Report ®

French Stimulus Includes Tax Breaks for Tech Startups

March 25, 2020, 1:09 PM

Tech startups can get their 2019 refunds early, thanks to France’s nearly 4 billion euro ($4.3 billion) stimulus plan announced today to help young companies hit by the economic fallout of the new coronavirus.

The French tech ecosystem has experienced strong growth, but many startups are still vulnerable small and medium-size enterprises, due to their development model, the government said. Covid-19, the disease caused by the coronavirus, is wreaking havoc with the global economy.

  • One measure in the plan announced by budget minister Gerald Darmanin allows companies to apply for faster refunds of 2020 corporate tax credits, including credits for research tax (CIR) and value added tax they paid in 2019.
  • “They can therefore apply now, without waiting for the filing of their annual financial statements ("liasse fiscale"), for a refund of the CIR for the year 2019, which amounts to a cash advance of around 1.5 billion euros. The corporate tax services are mobilized to process the companies’ refund requests as soon as possible, within a few days,” the government said.

To contact the reporter on this story: Rick Mitchell in Paris at correspondents@bloomberglaw.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Joe Stanley-Smith at jstanleysmith@bloombergtax.com

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