In a decision dated May 31, 2024, the Conseil d'État handed down an important ruling the way in which young doctors are taken into account in the Research Tax Credit (CIR).
In this judgment, the judges rule on eligibility for the CIR for young doctors already on permanent contracts when they obtain their doctorateif the company has not recognized their new status by means of a rider.
The ruling also clarifies the starting point of the 24-month period during which the taxpayer can double the expenses taken into account D. researchers for the purpose of calculating the CIR, when the latter are already on permanent contracts at the time they acquire their new status.
Clarification of the doubling of expenses for young doctor status
In this case, the judges ruled that, for employees already on permanent contracts at the time of their change of status, their remuneration could be taken into account at double its amount, even though the company had not provided for an endorsement recognizing that they were young doctors.
The 24-month period during which remuneration can be doubled as part of the RTC will begin to run not when the new status is obtained, but on the date on which the new status is granted. date of conclusion of CDI.
So, an employee who concludes his CDI on the 1ster January 2024 and obtains the status of young doctor on January 1.er June 2024, his remuneration will be doubled only from June 2024 to December 2025, i.e. for 19 months.
Analysis by our tax experts of how young doctor status is taken into account in the CIR
The Conseil d'Etat states that :
"Personnel expenses relating to researchers and research technicians directly and exclusively assigned to the operations mentioned in these provisions are taken into account for the tax credit they introduce, for double their amount, when they relate to persons holding a doctorate, and only from the date on which they obtained their doctorate, if this is subsequent to their recruitment. In any case, this period cannot exceed twenty-four months following the person's first recruitment on a permanent contract. "
No express acknowledgement of the employee's new status is required, and the starting date of the period is therefore the signing of the CDI.
To date, the administrative doctrine has not been amended, and still specifies that the 24 months are to be counted from the date when the young doctor status of the employee on permanent contract is obtained, if an amendment or new contract recognizing the young doctor's new status is signed.
We will be sure to keep you informed of any changes to the administrative doctrine and of future positions taken by the administration following this ruling.
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