{"id":179,"date":"2025-05-30T23:30:39","date_gmt":"2025-05-30T22:30:39","guid":{"rendered":"http:\/\/www.jcarmand.com\/en\/?p=179"},"modified":"2025-05-16T18:16:22","modified_gmt":"2025-05-16T17:16:22","slug":"jei-france-young-innovative-company","status":"publish","type":"post","link":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/jei-france-young-innovative-company\/","title":{"rendered":"Young Innovative Company Status &#8211; JEI : a powerful incentive"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Young Innovative Company Status (JEI) &#8211; General overview<\/b><\/h2>\n<p style=\"text-align: justify;\">The status of Young Innovative Company (JEI) enables young companies very active in R&amp;D to get significant financial support to get past the hurdle of the first and most difficult years of their development. It mainly consists in a social expense (tax) exemption on researchers&#8217; salaries and corporation tax exemption as well.<\/p>\n<h2 style=\"text-align: justify;\"><b>Conditions to acquire the JEI <\/b><b>status<\/b><\/h2>\n<p style=\"text-align: justify;\">To acquire the JEI\u00a0\u00a0(Young innovative company)\u00a0\u00a0status, the company must fulfil 5 conditions:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Be less than 8 years old,<\/li>\n<li>Be an SME according to the General Tax Code,<\/li>\n<li>Be independent (at least 50% directly or indirectly owned by physical\u00a0persons, including venture capitalists),<\/li>\n<li>Practice an authentically innovative business,<\/li>\n<li>Dedicate at least 15% of the total company\u2019s spending in R&amp;D,<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The calculation of R&amp;D\u2019s share of expenses is roughly the same as the <a href=\"https:\/\/entreprendre.service-public.fr\/vosdroits\/F23533?lang=en\">research tax credit (CIR)<\/a>.<\/p>\n<p style=\"text-align: justify;\">To preserve its status, the company must maintain all these requirements for each fiscal year.<\/p>\n<p>Subsidiaries of groups can benefit from the statuts if they were pre-existing companies. However, subsidiaires newly incorporated by groups are not eligible for it.<\/p>\n<h2 style=\"text-align: justify;\">Exemptions granted by the Young Innovative\u00a0Company\u00a0Status<\/h2>\n<p style=\"text-align: justify;\"><b>Companies that obtain the JEI status benefit during the eligible period of\u00a03 types of exemption:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Exemption of employers\u2019 payroll taxes for research personnel salaries over 8 years,<\/strong><\/li>\n<li>The following tax relief:\n<ul>\n<li><strong>Exemption on corporate income tax during\u00a012 months over 8 years,<\/strong><\/li>\n<li>50% tax allowance on profits for the following\u00a012 months,<\/li>\n<\/ul>\n<\/li>\n<li>Total exemption of two local business taxes (C.F.E. and C.V.A.E.)<\/li>\n<\/ul>\n<p>These tax exemptions on corporate income tax are subject to the European de minimis rule, which sets an upper limit on tax relief that a company can receive each year. These aids cannot exceed 200 K\u20ac by company over a 3-year period.<\/p>\n<p><b>Employers\u2019 payroll tax exemptions are capped:<\/b><\/p>\n<ul>\n<li>For each researcher, to the portion of revenue up to 4.5 times the SMIC \u00a0 (minimal French pay) of the gross salary, which represents today\u00a0 \u20ac8,108 per month in 2025,<\/li>\n<li>For each establishment, up to 5 times the social security\u2019s annual (that is \u20ac\u20ac235,500 for the 2025 calendar year).<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\">How to optimize &amp; secure the Young Innovative Company status?<\/h2>\n<p>To reduce the risk of queries from the tax authorities on the innovative nature of the research program, and consequently the JEI status, it is highly recommended for companies to request from the Service des Imp\u00f4ts des Entreprises (SIE) \u201cCorporate tax department\u201d to which they file, to take a stand on the innovating nature of the project(s) by filing a prior notice request (rescript). The absence of an answer from the Administration is worth agreement of its part. However, it can still control the reality and the amounts of the expenses.<\/p>\n<h2 style=\"text-align: justify;\"><strong>Accumulation of the JEI status with other exemptions or subsidies<\/strong><\/h2>\n<p style=\"text-align: justify;\">The company can accumulate the JEI status with the <a href=\"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/innovation-research-tax-credit-in-france\/\">CIR (research tax credit), <\/a>innovation and employment subsidies.<\/p>\n<h3 style=\"text-align: justify;\">THE YOUNG INNOVATIVE STATUS &#8211; IN BRIEF<\/h3>\n<div style=\"width: 763px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"Young Innovative Company\" title=\"Young Innovative Company\" src=\"https:\/\/www.jcarmand.com\/en\/wp-content\/uploads\/2018\/03\/Young-Innovative-status.png\" alt=\"Young Innovative Company statuts\" width=\"753\" height=\"571\" \/><p class=\"wp-caption-text\">Young Innovative Company<\/p><\/div>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">Our flexible and lean organization relies on experts and tax lawyers, who master the English language (and in some cases German) and have a confirmed experience of CIR. We assure you a quality of service comparable to that of large consulting firms, but at much\u00a0<b>lower rates<\/b>. At Jean-Claude Armand and Partners, we consider that\u00a0<b>tax advantages should benefit above all the companies. <\/b><b>For us, this is fundamentally a question of ethics!<\/b><\/p>\n<div>\n<p style=\"text-align: center;\">Need more information?<\/p>\n<p style=\"text-align: center;\"><a class=\"jca button\" title=\"Clic here to contact us\" href=\"\/en\/contact-starting-a-business-in-france\/\">Contact us<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Young Innovative Company Status (JEI) &#8211; General overview The status of Young Innovative Company (JEI) enables young companies very active in R&amp;D to get significant financial support to get past the hurdle of the first and most difficult years of their development. It mainly consists in a social expense (tax) exemption on researchers&#8217; salaries and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-incentives-and-subsidies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Young innovative company (JEI) status: what you need to know<\/title>\n<meta name=\"description\" content=\"The statut JEI (Young innovative company status) allows companies to benefit from payroll taxes exemptions, corporate tax exemptions and ..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/jei-france-young-innovative-company\/\" \/>\n<meta name=\"author\" content=\"Jean-Claude Armand\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.jcarmand.com\\\/en\\\/tax-incentives-and-subsidies\\\/jei-france-young-innovative-company\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.jcarmand.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Young Innovative Company Status &#8211; JEI : a powerful incentive\"}]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The Young innovative company (JEI) status: what you need to know","description":"The statut JEI (Young innovative company status) allows companies to benefit from payroll taxes exemptions, corporate tax exemptions and ..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/jei-france-young-innovative-company\/","author":"Jean-Claude Armand","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"BreadcrumbList","@id":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/jei-france-young-innovative-company\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.jcarmand.com\/en\/"},{"@type":"ListItem","position":2,"name":"Young Innovative Company Status &#8211; JEI : a powerful incentive"}]}]}},"_links":{"self":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts\/179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/comments?post=179"}],"version-history":[{"count":0,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts\/179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/media\/1484"}],"wp:attachment":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/media?parent=179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/categories?post=179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/tags?post=179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}