Taxation of a Limited Liability Company (SARL): What You Need to Know

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Verified on January 1, 2025 – Legal and Administrative Information Directorate (Prime Minister)

The SARL FRANCE is suitable for family projects, consisting of at least 2 partners, with liability limited to contributions. The SARL FRANCE benefits from various tax reductions.

What is the tax regime of the SARL France ?

Upon its creation, an SARL is automatically subject to the corporate tax regime (IS). In other words, its profits will be taxed according to the IS rules.

Declaration of Results

Any company subject to IS must submit an annual profit declaration. The documents to be submitted and the declaration procedures will depend on the tax regime (normal or simplified real) under which the company is placed.

Simplified Real or Normal Real: Which Tax Regime?

Simplified Real Regime

  • The company that falls under the simplified real regime must submit the following documents:
    • Result Declaration No. 2065
    • Tax file (tables No. 2033 A to 2033 G)
    • Minutes and excerpts from the deliberations of the partners during the fiscal year
    • Statement of profits distributed to partners, as well as sums or values placed at their disposal that are considered distributed income
    • List of individuals holding at least 10% of the share capital, with details on the number of shares and percentage of ownership
    • List of subsidiaries and participations, with details on the percentage of ownership and SIRET number for each
  • The company must file its declaration electronically, using one of the following methods:
    • EDI-TDFC mode, which involves transmitting declarations from accounting files through an EDI partner (e.g., an accountant or a specialized service provider).
    • EFI mode, accessed from the Professional space on impots.gouv.fr.

When to file the result declaration?

  • In principle, the declaration should be submitted within 3 months after the fiscal year closes. However, if the year ends on December 31 or if no fiscal year ends during the year, the declaration must be submitted by the second business day following May 1st.

Important Note:

  • The tax administration grants an additional 15 calendar days to complete the online declaration procedure.

Payment of Corporate Tax (IS): sarl france

The amount of corporate tax (IS) is calculated based on the results of the most recent closed fiscal year. The tax rate is 25% on the entire taxable result.

Note

  • A reduced rate of 15% applies to small and medium-sized businesses with a turnover not exceeding €10,000,000, provided that the capital is fully paid up and at least 75% is owned by individuals. This rate applies to profits up to €42,500. Profits above this threshold are taxed at 25%.

Corporate tax payments are made in 5 installments: 4 quarterly advances and 1 final balance.

Each advance is paid through the advance statement No. 2571, electronically transmitted through an EDI partner or online via the impots.gouv.fr professional space.

What is the tax regime of the SARL Manager?

The SARL france manager can receive various types of income: a salary for their managerial duties, dividends if they are a partner, and possibly interest on amounts loaned to the company.

Note

  • Each of these incomes is subject to income tax (IR). A 10% deduction or actual expense deduction (e.g., housing, meals, travel, etc.) is applied before calculating the tax.

Taxes the SARL France is subject to:

An SARL may be liable for several taxes, including:

  • Value-added tax (VAT)
  • Corporate Property Tax (CFE)
  • Corporate Value-Added Tax (CVAE)

VAT

  • The SARL collects VAT on each sale or service it performs and must remit the collected VAT to tax authorities.

VAT rules for declaration and payment depend on the tax regime:

  • VAT Exemption Threshold: The company is exempt from VAT declaration and payment if its turnover is below certain thresholds.

CFE (Corporate Property Tax)

  • This local tax applies to any company performing non-salaried professional activities and generating annual revenue over €5,000.

CVAE (Corporate Value-Added Tax)

  • This local tax applies to companies with annual revenue exceeding €500,000. If the company’s turnover exceeds €152,500, it must file a declaration regarding added value and employee numbers, even if no CVAE is due.

Tax Benefits Available for the SARL France

An SARL can benefit from various tax reductions, such as:

  • Based on its location (e.g., priority city districts, rural revitalization areas).
  • Based on its activities (e.g., innovation, research credits).
  • Based on actions taken within the company or the community (e.g., family tax credits, energy renovation work).

Note

  • Tax reductions for establishments in priority districts or rural revitalization zones apply only until December 31, 2024.