Tech giants such as Microsoft and Huawei Technologies are turning to France for research and development (R&D) due to a particularly attractive environment in this sector. The tax breaks for research and development offered by France since the beginning of the year alone are estimated at 5.6 billion euros, as revealed by the American agency Bloomberg.
More than 17,000 companies in sectors ranging from biotechnology to energy to software design and video games benefit from tax breaks and subsidies from the French state, amounting to an average of 323,500 euros per corporate entity, according to Bloomberg. The second-largest economy in the eurozone is also home to some of the most prominent scientists in the field of technology. According to Gemalto, a company that develops security systems for processing electronic transactions from credit cards to mobile phones, 30% of its 2,000 researchers are based in France.
Four years ago, France had pressured Ireland to raise its corporate tax rate. Although Ireland was negotiating the terms of its bailout package with the troika at the time, it had made it clear that there would be no change to the controversial rate of 12.5%. Today, it appears that France, which is under great pressure from Brussels and Berlin to discipline its budget, is attracting technology giants with billions of euros in R&D tax breaks, while the general corporate tax rate reaches 33.3%. According to a survey by AT Kearney based on a poll of 300 companies from 26 countries from January to February 2014, France is among the top ten countries for foreign direct investment, closing the gap with Britain and Germany.
Source: kathimerini.gr
