Andersen Was Granted CIR // CII Certificates by the French Ministry of Higher Education, Research and Innovation

In October 2021, the French Ministry of Higher Education, Research and Innovation (MESRI) included Andersen, an IT company, in the list of private research organizations. The firm was granted CIR // CII certificates giving tax benefits to its French partners. 

What are CIR and CII? 

CIR and CII are tax credits for research and innovation development. These certificates are aimed at solving the issues of funding research and innovation projects.

CIR reimburses expenses associated with research, development, and engineering works. The following three types of projects can get this tax concession:

– fundamental research where participants analyze properties of objects or some phenomena to obtain new knowledge,

– applied research, i.e. experimentation or summarizing the results of fundamental research,

– exploratory development that involves launching production of new materials, products, or devices, creating innovation processes, systems, and services, and improving the existing processes and technologies. 

In sum, research, development, and engineering is a structured process of obtaining present knowledge.

CII is mainly about innovation expenditures. Only innovation projects that passed the stage of research, development, and engineering are eligible for this tax concession. They must comply with the following criteria of novelty:

– be tangible or intangible,

– be unique and have no market analogs,

– outperform existing solutions in technical, ergonomic, functional, and ecological parameters.

The right to participate in CIR is based on a scientific contribution and contribution to new knowledge, while the right to participate in CII is based on improving product characteristics. In a real-case scenario, CIR and CII complement each other and serve the same purpose, which is the provision of a tax credit for research.

What benefits CIR and CII gives Andersen’s partners

The certificates give Andersen’s French partners a tax discount for innovation projects that comply with the CIR // CII requirements. This means that firms can receive a tax return of up to 20-30% of claimed costs. 

CIR and CII return correspondingly 30% and 20% of the main categories of the following expenditures: 

– salary for the staff performing research and development,

– expenses on R&D outsourcing,

– fixed operating costs,

– costs for industrial or intellectual property,

– costs for equipment depreciation.

The CIR certificate is available for self-employed entrepreneurs, large corporations, and any industrial, commercial, and agricultural firms that are subject to corporate or income tax. CIR is not limited and is 30% of any sum of expenses. As for CII, it can only be used by SMEs, and the limit is €80,000. If 20% of tax credit exceeds €80,000, an organization will still get this sum.

French companies are eligible for tax return according to CII if they ask Andersen to:

  • develop prototypes, a Minimum Viable Product, or conduct technical research,
  • perform configuration and design by changing production procedures and current software or developing a new product,
  • test and access product quality.

In some projects associated with prototype design, you should take heed to what type of device you’re developing. Initially, the work can be qualified as covered with CIR and then, along with the project development, be assigned to CII. The transition is difficult to identify, hence it is crucial to draw clear boundaries between the stages of the research, development, and engineering and the innovations so that the entire project isn’t considered as innovation and doesn’t comply only with the CII criteria.

The fact that MESRI has listed Andersen among the private research organizations in France speaks for the high level of the company’s software development projects. Moreover, this IT service provider has a certificate of compliance with GDPR requirements and ISO certificate, and its operations are guided by the IEEE standard.

Andersen is an outsourcing IT company with a full range of services. For more than 14 years, the firm has been helping enterprises from 17 various industries modernize their business by developing high-tech software solutions. The company is the best B2B company in 2019 and was ranked 2nd for the best staff augmentation services in the world. Also, Andersen is a Microsoft Certified Partner. By entrusting software development to Andersen, you gain a reliable technological partner that will help you take your business to the next level. 

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