JEI Status: Tax Benefits for Young Innovative Companies
The Jeune Entreprise Innovante (JEI) status offers French startups significant tax exemptions during their first 11 years of operation. Combined with the 30% R&D tax credit (CIR), JEI makes France one of the most tax-efficient jurisdictions globally for R&D-intensive companies.
Eligibility Criteria
Age: Less than 11 years old. Size: SME (fewer than 250 employees, under €50M revenue). R&D spend: At least 15% of tax-deductible expenses on R&D. Independence: Not formed through restructuring, and at least 50% owned by individuals or eligible entities. New activity: Genuinely creating a new business.
Tax Benefits
| Benefit | Details |
|---|---|
| Employer Social Charges | Full exemption on R&D staff salaries (up to €253K per employee) |
| Corporate Tax | 100% exemption for first year of profitability, 50% second year |
| CFE (Business Property Tax) | 7-year exemption (if local authority opts in) |
| Capital Gains | Exemption on founder shares held 1+ year |
Combined with CIR
A JEI company also claiming CIR can effectively recoup 40–50% of total R&D cost through combined tax benefits — unmatched in any major European economy. For international investors, structuring R&D in France through a JEI subsidiary can dramatically reduce effective tax rates.