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Young Innovative or Academic company (JEI - GAME)

Verified 01 janvier 2022 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Economy

A new company that invests in research and development (R&D) has the status of a young innovative company (JEI) or a young university company (JEU). It can benefit from tax and social exemptions. JEI status has been extended to GAMES that constitute a particular JEI category.

In all cases

The JEI and GAME at the close of each financial year, meet all of the following conditions:

  • Be SME
  • Less than 11 years of age (the company definitively loses JEI status in the year of its 11th anniversary
  • Be independent. Its capital must be held for 50% at least by one of the following:
    • Natural persons
    • Other JEIs held at least 50% by natural persons
    • Scientific associations or foundations of public interest
    • Research and educational institutions or investment businesses
  • Not created as part of a concentration, restructuring, expansion or resumption of such activities

To get the status of JEI the company must also incur R&D expenditure up to 15% minimum tax deductible expenses for that fiscal year.

The calculation of this rate does not take into account the charges for disposals of shares or bonds, foreign exchange losses and charges against other JEIs carrying out R&D projects.


To get the status of GAME the company must meet the following 3 conditions:

  • Belong for at least 10% students (or graduates of a master's or doctoral degree for less than 5 years) or research teachers
  • Have as main activity the valorisation of research work carried out. Its officers or associates must have participated in the course of their schooling or in the performance of their duties in a higher education institution. This institution must be entitled to issue a diploma conferring at least the master's degree.
  • Having an agreement with a higher education institution

  Please note : assessment of the 15% for a company operating one or more branches established in another Member State ofEU orEEA should take into account research expenses and expenses.

Tax benefits apply to companies until 31 December 2022.

Income or business tax

A JEI or a GAME may be exempt from income or business tax.

During 1to year (or first beneficiary tax period), the exemption is total.

For the following period or year, the exemption is 50%.

The income tax exemption is cumulative with the research tax credit (CIR).

Territorial economic contribution

It is exempt from the territorial economic contribution (CFE and CVAE) and the property tax for 7 years if the territorial community of the place where the establishment is located has voted for such a deliberation.

Other benefits

A JEI or GAME may also, subject to the following conditions:

  • Exemption of capital gains from the sale of shares
  • Immediate repayment of tax credit

  Warning : the tax exemption cannot be combined with other tax benefits (ZFU-TE, including new companies).

The exemption of employers' social security contributions and family allowances relates to the remuneration of:

  • Engineers
  • Technicians
  • Research and Development Project Managers
  • Industrial protection and technology agreements lawyers
  • Pre-Competitive Testing Staff
  • Social agents, under the general social security system, who are mainly involved in the company research and development project

The latter cannot be called into question when the employee devoted at least 50% from his working time to the R&D project. If the time spent by the employer is lower, the employer may be asked to justify the proper application of the exemption. In this case, it is the Urssaf that determines whether the exemption request is justified on the no.

The exemption shall apply subject to a double ceiling:

  1. Gross monthly remuneration per person capped at €7,214.03
  2. An annual ceiling for eligible contributions per establishment, set at €205,680

For establishments created or deleted during the year, the annual limit of exempt contributions per establishment and per year shall be calculated in proportion to the period of time elapsed.

If, in any year, the company no longer satisfies one of the conditions, it loses the benefit of the exemption for the year in question. It also loses it for subsequent years until it meets all the conditions.

To qualify for the exemption, the employer must be up to date with its reporting and payment obligations with respect to the Urssaf.

The following payroll taxes are not included in the exemption:

  • Social security contributions
  • Worker-occupational disease (AT/PM) and additional accident at work
  • CSG and CRDS contributions
  • Contributions to FNAL
  • Freight Payment
  • Social Package
  • Solidarity contribution for autonomy
  • Employers' contributions and unemployment insurance salaries

How do you know if you can get tax benefits?

During the first 9 months of business, the entrepreneur can ask whether he or she can benefit from the tax benefits to the regional or departmental public finance department. He must do so by means of a declaration of honour.

Attestation on honour

Directorate of Legal and Administrative Information (Dila) - Prime Minister

How do I get the payroll tax exemption?

No prior declaration with the Urssaf is necessary to obtain the exemption from social security contributions. The company itself applies the exemption by completing the contribution summary.