Corporate Tax in France: How Does It Work?

Corporate tax, commonly referred to as corporation tax, is applied to the profits generated by companies. But who exactly is liable for this tax? What are the rules, applicable rates, and procedures for declaring and paying it? Here’s everything you need to know.

What Is Corporate Tax?

Corporate tax, or corporation tax, is a levy on a company’s annual profits. It applies to businesses operating in France, meaning those that carry out regular commercial activities within French territory. Profits made abroad are not subject to French corporate tax.

Some companies are mandatorily taxed under the corporate tax regime, while others are taxed under the personal income tax system, depending on their legal structure and business activities.

Which Companies Are Automatically Subject to Corporate Tax?

The following business entities are required by law to pay corporate tax:

• Public limited companies (SA),

• Partnerships limited by shares (SCA),

• Private limited companies (SARL),

• Cooperatives,

• Simplified joint-stock companies (SAS),

• Professional partnerships (SEL, SELARL) under certain conditions,

• Civil companies engaged in commercial or industrial activities.

Note

Some companies that are automatically taxed under the corporate tax system may have the option to switch to the income tax regime, under specific conditions.

Which Businesses Can Choose to Be Taxed Under the Corporate Tax Regime?

Certain businesses that are normally taxed under the personal income tax system (IR) can opt to be taxed under the corporate tax regime (IS). This option is available to:

• Sole proprietors (EI), if they choose to be treated like a single-member EURL,

• Single-member limited liability companies (EURL),

• General partnerships (SNC),

• Limited partnerships,

• Joint ventures,

• SARLs with a single individual shareholder,

• Professional civil companies listed under Article 8, Section 1 of the General Tax Code,

• De facto companies,

• Agricultural businesses under limited liability (EARL), as outlined in Article 8, Section 5 of the General Tax Code.

More information is available on impots.gouv.fr.

Note

Micro-entrepreneurs are not eligible to opt for corporate tax.

What Is the Corporate Tax Rate for Your Business?

Standard Rate

As of 2025, the standard corporate tax rate in France is 25%, regardless of the company’s revenue.

Reduced Rate

A reduced 15% rate is available for companies that meet the following criteria:

• Annual turnover (excluding VAT) below €10 million,

• Capital fully paid up and held at least 75% by individuals (or by companies that meet this same requirement).

This reduced rate applies only to the first €42,500 in profits. Any amount above this threshold is taxed at the standard 25% rate.

How to Declare and Pay Corporate Tax

Filing the Tax Return

All companies, whether under the normal or simplified tax regime, must file their profit declaration using Form No. 2065-SD. This must be submitted electronically, along with the required supporting documents (financial statements, board resolutions, etc.), via an authorized EDI (Electronic Data Interchange) partner.

Companies under the simplified regime can also file their return directly via their online tax account using the EFI (Electronic Form Exchange) system.

Deadlines for filing depend on the fiscal year-end:

• If the fiscal year ends on December 31 of year N-1: file by the second business day after May 1 of year N.

• For any other closing date: file within three months after the end of the fiscal year.

• In case of business closure: file within 60 days of ceasing operations.

Paying Corporate Tax

Corporate tax payments must be made online.

To do this, companies must make four advance payments using Form No. 2571. The installment amounts are based on the last fiscal year’s results.

Payment schedule varies depending on the company’s fiscal year-end:

The remaining balance of corporate tax is paid using Form No. 2572.

Deadlines for paying the balance:

• For a fiscal year ending December 31 of year N-1: by May 15 of year N,

• For other year-end dates: by the 15th day of the fourth month following the fiscal year-end.

Monthly Deadlines for Businesses

Throughout the year, businesses face multiple key tax and reporting deadlines, including for VAT and corporate tax payments, as well as social declarations. To stay compliant, be sure to consult the current month’s calendar of fiscal and social deadlines.