Key Benefits:
Prime Minister,
On the report of the Minister of Economy, Finance and Industry and the Minister Delegate to Budget and Budget Reform, Government Spokesperson,
In view of the general tax code, in particular Articles 199 ter B, 220 B, 223 O and 244 quater B, and Articles 49 f N of Annex III to this code;
Having regard to Articles 87 and 89 of the Finance Law for 2004 (No 2003-1311 of 30 December 2003),
Decline:
Annex III to the General Tax Code is thus amended:
I.-Article 49 f H is supplemented by a paragraph worded as follows:
" However, the expenditure referred to in Article 2 (e) and (j) of the Article Cited in the first paragraph which correspond to operations carried out in France or outside France shall be eligible for the tax credit as long as they are taken into account for the determination of the taxable result. "
II. -At the point of Article 49f I the words: , including depreciation carried out in the course of the year and deemed to be deferred in a deficit period " Are deleted.
III. -After Article 49 septies I ter, an Article 49 Seven (a c) reads as follows:
' Art. 49 septies I c. -For the application of the j of II of Article 244 quater B of the General Tax Code, technological watch shall be understood as a permanent updating process with the aim of systematically organising the collection of information on the acquis Scientific, technical and related products, processes, methods and information systems in order to reduce development opportunities. "
IV. -Article 49 f J reads as follows:
" Regardless of the closing date of the fiscal years and regardless of their duration, the tax credit is calculated, as it relates to the volume share, by reference to expenses incurred during the year And, as regards the increase, by comparison between the expenditure in the calendar year and the average expenditure of the previous two calendar years. "
V.-In Article 49 septies K, the words: The tax credit " Are replaced by the words: " On the increase "and after the words:" The consumption "shall be inserted the words:" Non-tobacco ".
VI. -After Article 49 Seven L, it is inserted unarticle 49 septies L bis as follows:
" Art. 49 septies L bis. -The negative tax credits recorded in respect of expenditure incurred before 1 January 2004 and the negative growth shares recorded in respect of expenditure incurred after that date shall be attributed to the increasing shares Later in order of seniority. "
VII. -Article 49 septies M reads as follows:
" I.-The option for the tax credit referred to in section 244 quater B of the General Tax Code is the result of the filing of the special return for the calculation of this credit.
II. -The special declaration must be filed by corporations liable to tax on corporations with the statement of pay referred to in section 360 to the accounting officer of the Directorate General of Taxation. The other undertakings shall attach the special declaration to the annual declaration of results which they are required to file under Article 53 A of the General Tax Code.
As regards companies operating under the Group of Companies regime Under section 223 A of the General Tax Code, the parent company attaches the special statements of the companies in the group to the statement of pay relating to the overall result. The companies in the group are exempt from attaching the special declaration to the declaration that they are required to file under section 223 of the above code.
III. -The option referred to in the I shall be formulated by the undertakings in accordance with the procedures laid down in II within the time limit for the filing of the statement of pay or the statement of results relating to the financial year for which they wish to benefit from the Tax credit.
When a parent corporation opts for the tax credit under section 223 O, it must file the special declaration referred to in I. This statement summarizes, among other things, the increasing shares and the volume shares of Each of the companies that are members of the group having exposed research expenses eligible for the tax credit.
The partner or member of a partnership or group referred to in Articles 8, 238 bis L, 239 quater, 239 quater B and 239 C C of the general tax code and having incurred expenses eligible for the research tax credit, must file a special declaration indicating in particular the fraction of the increase and the proportion of the volume transferred to it By each of the partnerships or related groups of which it is associated or a member. However, where the partner or member is a natural person, it is exempt from filing the special tax return where the partner or member does not have a research tax credit other than that resulting from his or her participation in the partnership or Related Grouping
IV. -In the event of the transfer of expenditure between undertakings having direct or indirect dependency, or resulting from mergers, divisions, contributions or assimilated transactions, the undertakings concerned must attach a specific statement to the declaration Above for the purpose of determining the tax credit for the year in which the transfer occurred and for the following two years.
V.-A copy of the special declaration referred to in I, II and III and the specific status Referred to in the IV shall be addressed, within the same period as is provided for the filing of the statement of pay or the declaration of result, to the management of the technology. "
A. -The provisions laid down in I, III, IV, V, VI and VII of Article 1 shall apply to the tax credit for research expenditure incurred as from 1 January 2004.
B.-The provision laid down in Article 1 of Article 1 shall apply to Exercises open as of January 1, 2004.
Minister of National Education, Higher Education and Research, Minister of Economy, Finance and Industry, Minister Delegate to Budget and Budget Reform, Spokesperson Of the Government, and the Minister responsible for research shall each have responsibility for the execution of this Decree, which shall be published in the Official Journal of the French Republic.
Done at Paris, January 13, 2005.
Jean-Pierre Raffarin
By the Prime Minister:
The Minister of Economy,
Finance and Industry,
Hervé Gaymard
The Minister of National Education,
of higher education
and search,
François Fillon
Budget Minister
and Budget Reform,
Government Spokesperson,
Jean-François Copé
Associate Minister for Research,
François d' Aubert
