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Young Innovative or University Business (JEI - GAME)

Verified 16 avril 2020 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Economy

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

In all cases

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

  • Be a SME
  • Less than 8 years of existence (the company definitively loses the status of JEI in the year of its 8e anniversary)
  • Be independent. Its capital must be held for 50% at least
    • by natural persons
    • or other JEIs held at least at 50% by natural persons,
    • or by recognized associations or foundations of public interest of a scientific nature
    • or by research and educational institutions or investment companies.
  • Not to have been created in the context of a concentration, a restructuring, an extension of activity, a resumption of such activities

To get the status of JEI the company must also carry out 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 expenses of disposals of shares or bonds, foreign exchange losses, and expenses incurred with other JEIs carrying out research and development 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 
  • To have as its main activity the valorization of research work carried out in which its leaders or associates have participated, during their schooling or in the performance of their duties, within an institution of higher education entitled to grant a diploma conferring at least the degree of master
  • Have an agreement with a higher education institution

  Please note : the assessment of this 15% for an undertaking operating one or more branches established in another Member State of theEU orEEA must take into account the expenditure on research and the expenditure incurred by that institution(s).

Tax advantages apply to businesses created until 31 December 2022..

Income or corporation tax

A JEI or GAME may be exempt from income or corporate tax.

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

For the following period or year, the exemption shall be 50%..

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

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 has voted to deliberate in this direction.

Other benefits

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

  • Exemption from capital gains on disposal of shares
  • Immediate repayment of the claim tax credit

  Warning : the tax exemption cannot be combined with other tax advantages: ZFU, new businesses, in particular.

The exemption from employers' social security contributions and family allowances relates to the remuneration of the following staff, since 50 % of their working time is devoted to the R&D project:

  • 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's research and development project

The exemption shall apply until the last day ofe the year following the year in which the company was founded. For example, a company created on 1to June 2014 is exempt until 31 December 2021.

The exemption is total for remuneration paid since January 2014.

The exemption shall apply subject to a double ceiling:

  1. gross monthly remuneration per person capped at €6,927.37 (corresponding to 4,5 times the Smic),
  2. an annual ceiling for eligible contributions per institution, fixed at €205,680 (corresponding to 5 times the annual social security ceiling).

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

If in a year the undertaking no longer satisfies one of the conditions, it shall lose the benefit of the exemption for the year in question and for subsequent years until it satisfies all the conditions.

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

The following social security charges are not included in the exemption:

  • Social security contributions 
  • Workers' compensation contributions-occupational diseases (AT/MP) and supplementary occupational injury premium
  • CSG and CRD contributions 
  • Contributions to the FNAL 
  • Shipping Payment 
  • Social Package 
  • Solidarity contribution for autonomy
  • Employers' and employees' unemployment insurance contributions

During the first 9 months of its activity, the entrepreneur can ask, by means of a declaration on honor, whether it can benefit from the tax advantages to the regional or departmental management of public finances.

Attestation on honor

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

No prior declaration to the Urssaf is necessary to obtain the exemption of social security taxes. The company itself applies the exemption by completing the contribution summary form..