Tax loophole: Decathlon expresses concern over potential CIR decrease in France

As the French government addressed the 2026 budget, the subject of tax credit cuts resurfaced within local media. Among these, a potential decrease in the CIR (Crédit d'Impôt Recherche) could significantly impact companies in the fashion and sports sectors, such as French sporting goods retailer Decathlon. Concerned by the issue, Decathlon voiced its apprehension.

According to a document from the Haute Autorité pour la transparence de la vie publique (HATVP) dated March 21, 2025, Decathlon contacted parliamentary decision-makers to warn about the consequences of a reduction in the CIR. The sports retailer indicated this decrease would impact the 'innovation ecosystem in France and the competitiveness of French companies'.

Research tax credit

What is the CIR? In France, the CIR "aims to encourage companies to engage in research and development (R&D) activities", as stated on the government website Entreprise.Service-Public.

This tax system allows companies to deduct part of their R&D expenses from their corporate tax. The CIR rate varies depending on the amount of expenditure incurred. It is 30 percent for expenses less than or equal to 100 million euros and 5 percent for expenses exceeding this amount. The CIR represents substantial financial aid for companies like Decathlon, which have made innovation a pillar of their business model.

Innovation has been at the heart of Decathlon's strategy since its creation in 1976. The company distinguishes itself by creating its own brands and developing new products, which it presents each year at an event called 'Reveal Innovation'.

The CIR supports this effort by reducing the financial risks associated with the research undertaken. Given Decathlon's continuous investments in R&D, it is highly likely the company is a significant beneficiary of this credit. By warning about the consequences of a decrease in the CIR, the company aims to preserve a favourable tax environment that allows it to continue investing in research into new technologies and materials.

Furthermore, Decathlon also mentioned the "innovation ecosystem in France", highlighting the interdependence of economic actors. A decrease in the CIR could weaken the entire innovation value chain, affecting start-ups, SMEs, research laboratories and partnerships. For a group like Decathlon, a dynamic ecosystem is essential for recruiting talent, collaborating with innovative partners and accessing new technologies. This is especially true as the group now owns an investment company called Decathlon Pulse, whose objective is to develop ideas and concepts with 'strong potential'.

In 2024, the Decathlon group recorded a 5 percent YoY growth in turnover, reaching 16.2 billion euros.

According to an article published by Le Monde on January 9, 2025, the CIR is the state's primary tax expenditure for businesses, and its amount continues to increase: it was 7.6 billion euros in 2024, approximately 10 percent of corporate tax. According to the same media, the CIR is "a tax loophole that has become a veritable gold mine, abundant, generous and coveted".