On 16 November 2021, Some incentives for innovation were included in the Finance Bill 2022, which would have enacted by the end of December 2021. Those incentives are given below:
- The timeline of company’s Young Innovative Enterprises (JEI) scheme status is to be extended from seven to 10 years. Under the scheme, a company must be less than eight years old and research and development (R&D) expenses must make up at least 15% of its tax deductible expenses.
- The parliament introduced a new tax credit for companies that conclude collaboration contracts with certain research organizations between 1 January 2022 and 31 December 2025 and that finance these organizations’ contract-related research expenses.
- A 20% innovation tax credit (CII) would be provided for SMEs in the industrial, commercial, or agricultural sector that incur certain innovation expenses (to develop prototypes in particular). As currently drafted, this credit would only apply through 31 December 2022, when it could be repealed. However, an amendment adopted by the National Assembly would extend it until 31 December 2024.
