Corporate Income Tax (IS): How It Works in France

Corporate income tax (Impôt sur les sociétés – IS) is levied on the annual profits of companies operating in France. But who must pay it, how is it calculated, and what are the applicable rates? Here’s a comprehensive breakdown.

What Is Corporate Income Tax?

Corporate income tax (IS), also known as profit tax, applies to the net earnings of businesses that carry out their primary operations in France. Profits earned abroad are not subject to IS.

While some companies are automatically subject to IS based on their legal structure, others fall under personal income tax (IR) but may choose to switch to IS if eligible.

The tax regime a business follows largely depends on its legal form and the nature of its activities.

Which Companies Are Automatically Liable for IS?

The following legal entities are subject to corporate tax by default:

• Public limited companies (SA)

• Partnerships limited by shares (SCA)

• Limited liability companies (SARL)

• Cooperatives

• Simplified joint-stock companies (SAS)

• Professional companies (SEL, SELARL) under certain conditions

• Civil companies engaged in industrial or commercial activities

Note: Some of these companies may opt for taxation under personal income tax (IR) under specific conditions. Find out more here.

Which Businesses Can Choose Corporate Income Tax?

Businesses that are normally taxed under the IR regime can elect to be taxed under IS, including:

• Sole proprietorships (EI), by opting for EURL-equivalent status

• Single-member limited liability companies (EURL)

• General partnerships (SNC)

• Limited partnerships (SCS)

• Joint ventures and undeclared partnerships

• Professional civil companies (SCP)

• De facto companies

• Limited liability agricultural operations (EARL)

Important: Micro-enterprises are not eligible to opt for corporate tax.

For eligibility conditions and procedures, visit impots.gouv.fr.

What Corporate Tax Rates Apply?

Standard Rate

As of 2025, the standard IS rate is 25% for all companies, regardless of their annual turnover.

Reduced Rate

A reduced rate of 15% applies to profits up to €42,500, provided the company:

• Has an annual turnover (excluding VAT) of €10 million or less, and

• Is at least 75% owned by individuals (or by companies meeting this criterion)

Profits above €42,500 are taxed at the standard 25% rate.

How to Declare and Pay Corporate Tax?

Filing the Tax Return

All companies subject to IS must file their annual profit declaration using form 2065-SD, regardless of whether they are under the standard or simplified real regime. Required documents (such as financial statements and board minutes) must be submitted electronically via a certified EDI partner.

Businesses on the simplified regime may also declare through their online account using the EFI (Electronic Form Exchange) system.

Filing deadlines:

• December 31 closing date: File by the second working day after May 1 of the following year.

• Other closing dates: File within three months after the end of the accounting year.

• Cessation of activity: File within 60 days.

Paying Corporate Income Tax

Corporate tax payments must be made electronically.

Companies are required to make four advance payments (installments) each year using form 2571. These installments are based on the previous fiscal year’s profits.

Installment schedule depends on your fiscal year-end:

Final Payment (Balance Due)

The final balance of corporate tax must be paid using form 2572. The deadline depends on your fiscal year-end:

• December 31 year-end: Balance due by May 15 of the following year

• Other closing dates: Due by the 15th of the fourth month after closing