Corporate tax system in France

Corporate tax system in France

Corporation tax (impôt sur les sociétés - IS) in France applies to different categories of company and is subject to varying rates of tax. Here is the main information about the companies concerned and the rates of corporation tax in France:

Companies concerned :

  • Sociétés anonymes (SA)

  • Limited liability companies (SARL)

  • Partnership limited by shares (SCA)

  • Simplified joint stock companies (SAS)

  • Liberal practice companies (SEL, SELARL)

  • Professional trade unions (except for their activities relating to the study and defence of the rights and interests of their members)

Other types of company may also opt to be taxed on a corporation tax basis, in particular :

  • EIRL: Entrepreneur individuel à responsabilité limitée (individual limited liability company)

  • Entrepreneur individuel (EI) (assimilated to an EURL)

  • Sole proprietorship with limited liability (EURL)

  • General partnership (SNC)

  • Joint ventures

  • Non-trading companies with an industrial or commercial activity

  • De facto companies

Tax rate :

Standard rate of corporation tax: For financial years beginning on or after 1 January 2022, the standard rate of corporation tax is 25% on all taxable income for all companies.

Reduced rate of corporation tax: A reduced rate of 15% applies to companies that meet the following conditions:

  • Turnover excluding tax of less than €10 million.

  • At least 75% of their capital must be held and paid up by individuals (or by a company meeting this condition).

  • The reduced rate of 15% applies to profits of up to €42,500 for small and medium-sized enterprises (SMEs). Above this threshold, profits are taxed at the standard rate of corporation tax, i.e. 25%.