French CIR/CII reform 2026: R&D tax credits for startups
French CIR/CII 2026 guide for startups and SMEs: rates, innovation tax credit, collaborative research credit, 2069-A-SD and audit file.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
The French CIR and CII remain major funding tools for startups, SaaS companies, deeptech, software publishers, industrial innovators and R&D-intensive SMEs. In 2026, the update is not just about a rate: companies must monitor the 2069-A-SD form, the extension of the collaborative research tax credit, the CII timeline to 31 December 2027 and the quality of the technical file.
This update keeps the existing slug to avoid SEO cannibalisation. See also JEI status, French tax rulings, BSA AIR, 2026 Finance Act measures and SME financial dashboards.
Executive summary#
French tax authorities state that CIR is available to eligible companies taxed under a real regime. The standard rate is 30% of qualifying R&D expenses up to EUR 100m and 5% above that threshold, with 50% in French overseas departments. Innovation expenses for SMEs remain referenced until 31 December 2027. The 2026 Finance Act also extends the collaborative research tax credit for contracts concluded until 31 December 2028.
| Scheme | Audience | 2026 point |
|---|---|---|
| CIR research | Companies with qualifying R&D | 30% up to EUR 100m, 5% above |
| CII innovation | EU-definition SMEs | Innovation expenses until 31 December 2027 |
| CICO collaborative research | Contracts with eligible research bodies | Extended to 31 December 2028 |
| Ruling | Companies seeking certainty | Prepare before filing |
| 2069-A-SD | Tax return form | 2026 version available on impots.gouv.fr |
Freshness note: updated on 3 May 2026.
CIR or CII: research is not innovation#
CIR covers R&D: fundamental research, applied research or experimental development. CII targets certain SME innovation expenses for prototypes or pilot installations of new products. A commercial feature or ordinary client development is not enough.
| Question | CIR | CII |
|---|---|---|
| Project nature | Scientific or technical uncertainty | Prototype or pilot installation of a new product |
| Companies | Broad real-tax-regime scope | EU-definition SMEs |
| Evidence | State of the art, uncertainty, experimental method | New product and superior performance |
| Common risk | Treating routine software development as R&D | Treating product improvement as qualifying innovation |
Our chartered accountant view: a strong CIR/CII file starts in project management, not when the form is filled. Time records, tickets, versions, prototypes and technical decisions should be kept during the year.
2069-A-SD and audit file#
The 2026 2069-A-SD form is available on impots.gouv.fr. The credit calculated on the specific form must be reported on the relevant corporate tax forms, including 2069-RCI-SD where applicable.
Documentation checklist#
- project description and technical objective;
- state of the art at project start;
- scientific or technical uncertainties;
- experimental approach, tests, failures and iterations;
- time spent by researchers, engineers and technicians;
- subcontracting invoices and approvals where needed;
- fixed assets, depreciation and R&D allocation;
- subsidies to deduct where linked to the operations.
The CIR / JEI startup simulator can provide an estimate, but it does not replace tax and technical qualification.
The underestimated risk: putting CIR into gross margin#
Many startups treat CIR as if it were revenue. It is not. CIR is a tax credit, not a sale. In SaaS reporting, it should be separated from gross margin, MRR and operating profitability.
| Metric | Recommended handling |
|---|---|
| MRR or ARR | Do not include CIR |
| Gross margin | Do not mask R&D cost with the tax credit |
| Cash runway | Include refund or offset timing cautiously |
| Fundraising | Present CIR as public funding with conservative assumptions |
| Audit file | Link expenses, project and technical evidence |
What management must decide#
- Which projects are R&D, innovation or out of scope?
- Who validates the technical file: CTO, product, finance, accountant?
- Is a ruling needed for a material project?
- How is CIR treated in budget and cash planning?
- What external review is needed before 2069-A-SD filing?
Hayot Expertise supports startups through CIR/CII/JEI funding support, French corporate tax and French accounting services.
2026 watch points#
- Do not label ordinary software development as R&D without documented technical uncertainty.
- Deduct public subsidies linked to research operations.
- Check private subcontractor approvals where required.
- Track CIR, CII and collaborative research separately.
- Do not promise a refund or tax gain before reviewing the file.
Frequently asked questions
Is the CIR rate 30% in 2026?+
Yes, French tax guidance states 30% up to EUR 100m of qualifying R&D expenses and 5% above, with 50% in French overseas departments.</details>
Does CII still exist in 2026?+
Yes, SME innovation expenses are referenced by the tax administration until 31 December 2027, subject to conditions.</details>
What changed with the 2026 Finance Act?+
A key point is the extension of the collaborative research tax credit for contracts concluded until 31 December 2028.</details>
Is a CIR ruling mandatory?+
No, but it can secure a material project if prepared early with a complete file.</details>
Is a simulator enough to file?+
No. A simulator estimates. Filing requires tax qualification and an audit-ready technical file.</details>
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.
- impots.gouv.fr - Puis-je prétendre au crédit impôt recherche ?
- impots.gouv.fr - Formulaire 2069-A-SD millésime 2026
- MESR - Guide du crédit d'impôt recherche 2025
- BOFiP - Prorogation du crédit d'impôt recherche collaborative, loi de finances 2026
- Direction générale des Entreprises - Crédit d'impôt recherche
This topic is part of our service French R&D tax credits | CIR, CII, JEI support
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