The “Young Innovative Company” (JEI) designation offers numerous benefits to small and medium-sized enterprises (SMEs) that invest in research and development (R&D). Here is the key information about this program.
Who is eligible for JEI status?
Companies established before December 31, 2025
Fewer than 11 years in business for companies founded between 2013 and 2022
Fewer than 8 years in operation for companies established after January 1, 2023
Fewer than 250 employees
Revenue of less than 50 million euros
Total assets of less than 43 million euros
Capital Independence (Majority-Owned by Individuals)
R&D expenses accounting for at least 15% of expenses
Two categories of JEIs:
"Traditional" JEI: R&D expenses ≥ 15% of operating expenses
Research-Oriented Small and Medium-Sized Enterprise (JEIR): R&D expenditures ≥ 30% of operating expenses
Tax Exemptions
24-month corporate income tax exemption
Full exemption during the first profitable fiscal year (up to 12 months)
50% exemption for the following fiscal year
Can be combined with the research tax credit (CIR)
Cannot be combined with other tax incentives (urban free zones, etc.)
Elimination of the corporate income tax exemption for companies established on or after January 1, 2024
Exemption from the territorial economic contribution (CET) and property tax for 7 years
Social Security Exemptions:
Exemption from employer contributions on a portion of compensation
Intended for researchers, technicians, R&D project managers, legal professionals, and staff responsible for pre-competitive testing
Cap per employee and per facility
Applicable at the full rate for 8 years
Procedure for obtaining JEI status:
Voluntary Disclosure to the Tax Administration
Request for a preliminary opinion may be submitted (template available on the BOFiP website)
Response from the administration within 3 months
No prior declaration is required for social security exemption