French General Tax Code
In forceI.-The tax credit defined in Article 244 quater C is deducted from the income tax owed by the taxpayer in respect of the year during which the remuneration taken into account to calculate the tax credit was paid. The excess tax credit is credited to the taxpayer in the same amount. This claim is used to pay the income tax due for the three years following the year in respect of which it is established, then, if applicable, the unused fraction is reimbursed at the end of this period.
The claim is inalienable and non-transferable, except in the cases and conditions provided for in articles L. 313-23 to L. 313-35 of the Monetary and Financial Code; it may not then be the subject of several partial assignments or pledges with one or more assignees or creditors.
The claim on the State is made up of the amount of the tax credit before deduction from the income tax when, pursuant to the second paragraph of Article L. 313-23 of the same code, this claim has been the subject of an assignment or pledge before the liquidation of the income tax from which the corresponding tax credit is deducted, provided that the administration has been informed in advance.
In the event of a merger or similar transaction taking place during the period mentioned in the last sentence of the first paragraph of this I, the fraction of the claim that has not yet been deducted by the transferring company is transferred to the transferee company.
II.The claim mentioned in the first paragraph of I is immediately repayable when it is established by one of the following companies:
1° Companies 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;
2° 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 held continuously:
a) By natural persons;
b) Or by a company at least 50% of whose capital is held by natural persons;
c) Or by venture capital companies, venture capital mutual funds, specialised professional funds falling under l'article L. 214-37 of the Monetary and Financial Code, as it read prior to Order 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 12 of l'article 39 between the companies and these latter companies or these funds.
These companies may request the immediate repayment of the claim established in respect of the year of creation and the following four years;
3° Young innovative companies mentioned in Article 44 sexies-0 A ;
4° Companies that have been the subject of conciliation or safeguard proceedings, receivership or compulsory liquidation. These companies may request reimbursement of their unused claim from the date of the decision or judgment that opened these proceedings.
