A benchmark ministerial report on the Research Tax Credit
The Ministry of Higher Education, Research and Space, in conjunction with the Directorate General for Research and Innovation (DGRI), has published the annual report on the Research Tax Credit (CIR) for 2023.
This document provides a quantified overview of the application of tax incentives for research and development.’innovation in France.
After a reminder of the legal framework and the historical development of the Research Tax Credit (CIR)from Innovation Tax Credit (CII) and CIR-Collection, The report shows a steady increase in the number of beneficiary companies.
Number of companies benefiting from the CIR and CII
Between 2022 and 2023, this increase amounts to 4 %, corresponding to average annual growth of 3 % over the last ten years.
For the year 2023, 23,526 companies have received public support for research and innovation, for a total amount of 7.85 billion euros (provisional figure provided by MESRE-DGRI). This aid is divided between :
- 16,089 CIR filers
- 10,688 CII filers
- 726 Collection tax credit filers
Research tax credit: sector analysis of beneficiary companies
Open to companies of all sizes, the CIR provides a tax credit equal to 30 % of eligible research and development expenditure up to 100 million euros, then to 5 % above this threshold.
Majority in industrial sectors
According to the report, industrial companies make up the majority of beneficiaries, particularly in the following sectors:
- Industry electrical and electronic,
- Pharmacy, perfumery and cleaning products,
- Shipbuilding, aeronautics and railways.
A significant presence of service activities
Service activities are also represented, particularly in the fields of IT consulting and assistance, as well as architecture and engineering services.
The data presented is based on the law in force in 2023. For information on the changes applicable in 2025, please refer to our special report on finance law 2025.
CIR: predominance of one category of expenditure
Finally, the report states that personnel costs account for the lion's share of declared amounts This structure is presented as a recurring feature of our operations. This expenditure structure is presented as a recurring feature of the company's operations. CIR and CII, as observed in the declarative data analyzed for 2023.
Companies benefiting from the CII: breakdown by economic sector
The Innovation Tax Credit is reserved for small and medium-sized companies as defined by European Union law, employing less than 250 employees with sales of less than 50 million euros or with total assets of less than 43 million euros.
In 2023, the ITC rate was set at 30 % of eligible expenditure, up to an annual ceiling of 400,000 euros. From 2025, this rate will be reduced to 20 %, with the ceiling remaining unchanged.
The report highlights a sectoral breakdown distinct from that of the CIR:
companies benefiting from the CII are mainly in the service sector, including the board IT, The manufacturing sector is less well represented, mainly in the electrical, electronics and mechanical industries.
Expert reading: what are the security issues in light of the CIR 2023 report?
Over and above the figures, the CIR 2023 report highlights several points key issues for innovative companies :
- The preponderance of personnel expenses confirms the importance of rigorous justification of R&D work and the human resources mobilized; ;
- The evolution of the CII from 2025 onwards requires a anticipating innovation financing strategies.
In this context, the security of CIR and CII declarations depends more than ever on the quality of technical and financial documentation, as well as a perfect command of the regulatory framework.
Securing your CIR/CII in light of the CIR 2023 report
The CIR 2023 report highlights sectoral trends and types of expenditure that have been particularly observed by the Ministry.
G.A.C. Group assists innovative companies in securing their CIR and anticipating administrative controls.
FAQ - CIR 2023 Report
Which types of company benefit most from the CIR according to the 2023 report?
The report shows a strong representation of industrial companies, while confirming a significant presence of service activities, particularly in engineering and IT consulting.
Which type of expenditure is most representative of the CIR?
Personnel costs account for the lion's share of the amounts declared, and are the focus of particular attention during tax audits.
What is the impact of the reform of the ITC from 2025?
The reduction in the ITC rate to 20 % means that we need to anticipate funding decisions and secure the mechanisms we use in current financial years.
How do CIR and CII beneficiaries differ in profile?
The CIR is available to companies of all sizes, mainly in the industrial sector, while the CII is reserved for SMEs and used mainly by service companies.
How to secure your CIR in light of the report?
Through robust technical documentation, precise justification of expenses and expert support that takes into account the current expectations of tax authorities.
What's the point of comparing CIR 2023 data from one year to the next?
Multi-year analysis makes it possible to identify structural trends in the use of these systems, and to assess their evolution over time.
Source: Rapport national sur le Crédit d'Impôt Recherche - Études et résultats statistiques, published by the French Ministry of Higher Education and Research (MESR). Read the full report
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