Who qualifies for Young Innovative Company (JEI) - Exemption from Employer Social Contributions?

Question 1

Accepted Answer

Who qualifies: micro-enterprises, small enterprises, or medium-sized enterprises · no outstanding tax or social-security debts

Question 2

Be an SME: it must employ fewer than 250 persons and have a turnover of less than EUR 50 million or must have a total balance sheet of less than EUR 43 million.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Être une PME : titleContent  : elle doit employer moins de 250 personnes et réaliser un chiffre d'affaire inférieur à 50 millions € ou doit avoir un bilan total inférieur à 43 millions €”

Question 3

It must have been created less than 11 years ago (the company permanently loses JEI status in the year of its 11th anniversary).

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „elle doit avoir été créée depuis moins de 11 ans (l'entreprise perd définitivement le statut de JEI l'année de son 11 e anniversaire)”

Question 4

It must have been created less than 8 years ago to benefit from social and tax exemptions (the company permanently loses JEI status in the year of its 8th anniversary).

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Elle doit avoir été créée depuis moins de 8 ans pour bénéficier des exonérations sociale et fiscale (l'entreprise perd définitivement le statut de JEI l'année de son 8 e anniversaire)”

Question 5

It must carry out R&D expenses representing at least 20% of charges.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Elle doit réaliser des dépenses de R&D représentant au moins 20 % des charges .”

Question 6

Its capital must be held at least 50% by one of the following persons or entities:

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Son capital doit être détenu pour 50 % au minimum par l'une des personnes ou entités suivantes :”

Question 7

It carries out a new activity: that is to say, it was not created as part of a concentration, a restructuring, an extension of activities already existing or a takeover of such activities.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Elle exerce une activité nouvelle : c'est-à-dire qu'elle n'a pas été créée dans le cadre d'une concentration : titleContent , d'une restructuration, d'une extension d'activités déjà existantes ou d'une reprise de telles activités”

Question 8

To benefit from the exemption, the employer must be up to date with its declarative obligations and payment of social contributions.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Pour bénéficier de l'exonération, l'employeur doit être à jour de ses obligations déclaratives et de paiement de ses cotisations sociales.”

Question 9

The portion of the amount of monthly remuneration taken into account must not exceed EUR 8,401.58.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „La part du montant des rémunérations mensuelles prise en compte ne doit pas dépasser 8 401,58 € .”

Question 10

The amount of the exemption must not exceed EUR 240,300 per establishment and per calendar year.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Le montant de l'exonération ne doit pas dépasser 240 300 € par établissement et par année civile.”

Question 11

It has carried out R&D expenses representing between 5 to 20% of charges.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Elle a réalisé des dépenses de R&D représentant entre 5 à 20 % des charges.” (p. 1)

Question 12

The workforce of the company has increased by at least 100% and by at least 10 employees in full-time equivalent (FTE), compared to that recorded at the end of the financial year preceding the penultimate financial year.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „L'effectif de l'entreprise a augmenté d'au moins 100 % et d'au moins 10 salariés en équivalents temps plein (ETP), par rapport à celui constaté à la clôture de l’exercice qui précède l’avant dernier exercice .” (p. 1)

Question 13

The amount of its research expenses during the financial year for which the workforce increased has not decreased compared to that of the previous financial year.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Le montant de ses dépenses de recherche au cours de l'exercice pour lequel l'effectif a augmenté n'a pas diminué par rapport à celui de l'exercice précédent” (p. 1)

Question 14

Less than 8 years (the company permanently loses the status of JEII in the year of its 8th anniversary) if the company is created after 1 January 2023.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Moins de 8 ans (l'entreprise perd définitivement le statut de JEII l'année de son 8 e anniversaire) si l’entreprise est créée après le 1 er janvier 2023” (p. 1)

Question 15

Less than 11 years (the company permanently loses the status of JEII in the year of its 11th anniversary) if the company is created before 1 January 2023.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Moins de 11 ans (l'entreprise perd définitivement le statut de JEII l'année de son 11e anniversaire) si l’entreprise est créée avant le 1 er janvier 2023” (p. 1)

Question 16

It must carry out R&D expenses representing between 5% and 20% of charges.

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Elle doit réaliser des dépenses de R&D représentant entre 5 % et 20 % des charges .” (p. 1)

Question 17

To qualify for JEII status, the company must also meet the ESUS criteria "Entreprise solidaire d'utilité sociale" or the conditions required for commercial companies to fall within the social and solidarity economy (ESS).

Accepted Answer

Eliminatory condition: if it is not met, the applicant is not eligible. Source in the document: „Pour prétendre au statut JEII, l’entreprise doit également répondre aux critères ESUS « Entreprise solidaire d’utilité sociale  » ou aux conditions requises des sociétés commerciales pour relever de l’ économie sociale et solidaire (ESS) .” (p. 1)