1°: Deduction of withholding tax and tax credits

I.-The tax credit for collaborative research defined in article 244 quater B bis is deducted from the income tax due by the taxpayer for the year during which the research expenses taken into account for the calculation of the tax credit were invoiced by the research and knowledge dissemination organisation. The excess tax credit constitutes a claim on the State for the same amount. This claim is used to pay the income tax due for the three years following the year in which it was established, and then, if necessary, the unused portion is reimbursed at the end of this period.

The claim is inalienable. The receivable is inalienable and non-transferable, except in the cases and under the conditions set out in articles L. 214-169 to L. 214-190 and L. 313-23 to L. 313-35 of the French Monetary and Financial Code.

In the event of a merger or other transaction, the receivable may be transferred to a third party. In the event of a merger or similar transaction taking place during the period referred to in the last sentence of the first paragraph of this I, the portion of the claim that has not yet been allocated by the transferring company is transferred to the transferee company. The fraction of the tax credit for collaborative research corresponding to the shares of natural persons other than those mentioned in I of Article 151 nonies is neither chargeable nor refundable.

II. II.-The claim mentioned in the first paragraph of I of this article is immediately repayable when it is established by one of the following companies:

1° New companies, other than those mentioned in III of article 44 sexies, whose capital is fully paid up and at least 50% of which is continuously held:

a) By natural persons a) By individuals;

or b) Or by a company at least 50% of whose capital is held by natural persons;

> or c) Or by venture capital companies, venture capital mutual funds, specialised professional funds governed by article L. 214-37 of the French Monetary and Financial Code as it read prior to Order no. 2013-676 of 25 July 2013 amending the legal framework for asset management, professional private equity funds, sociétés de libre partenariat, sociétés de développement régional, sociétés financières d'innovation or sociétés unipersonnelles d'investissement à risque, provided that there is no arm's length relationship, within the meaning of Article 12 of Article 39 of this Code, between the companies and these companies or funds.

These companies may request the immediate repayment of the tax credit. These companies may request the immediate repayment of the claim recorded in respect of the year in which they were set up. The same applies to claims established in respect of the following four years;

2° Companies that have been the subject of a conciliation or safeguard procedure, a receivership or a compulsory liquidation. These companies may request reimbursement of their unused receivables from the date of the decision or judgement opening these procedures;

3° The young innovative companies mentioned in Article 44 sexies-0 A;

4° Businesses that meet the definition of micro, small and medium-sized enterprises given in Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.