Social Contribution on Corporate Tax in France

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Verified on October 24, 2024 – Directorate of Legal and Administrative Information (Prime Minister’s Office)

Businesses subject to corporate tax in France may be required to pay a social contribution on corporate tax (CIT)if they meet certain revenue conditions. This additional levy is calculated based on the amount of corporate tax owed and is collected under the same conditions.

It is important to distinguish this contribution from the corporate social solidarity contribution (C3S), which is a separate tax obligation.

Who Is Exempt from the Social Contribution on Corporate Tax in France ?

Companies subject to corporate tax in France are generally liable for this social contribution. However, exemptions apply if a company meets both of the following conditions:

  • Annual revenue does not exceed €7,630,000, adjusted to a 12-month fiscal year if necessary. If the company is the parent of a tax group, this threshold is determined by summing the revenues of all member companies.
  • Fully paid-up share capital, with at least 75% ownership by individuals (or by another company that is itself at least 75% owned by individuals).

Note: Individual entrepreneurs (EI) are only required to meet the revenue threshold, as they cannot legally hold share capital.

How Is the Social Contribution on CIT Calculated?

The social contribution on corporate tax in France is set at 3.3% of the CIT due, after applying an annual deduction of €763,000 to the taxable amount.

Corporate Taxation Rates in France

  • Standard corporate tax rate: 25% on taxable profits earned in France.
  • Reduced rate of 15%: Available for small and medium-sized enterprises (SMEs) with revenue not exceeding €10,000,000 and share capital that is fully paid-up and at least 75% owned by individuals. This reduced rate applies only to profits up to €42,500; beyond this amount, the standard 25% rate applies.

Example Calculation

A company generates €15,000,000 in revenue (excluding VAT) and €3,500,000 in profits. Since it does not meet the conditions for the reduced CIT rate, it is taxed at 25%:

25% × €3,500,000 = €875,000 in corporate tax.

The social contribution is then calculated as follows:

3.3% × (€875,000 – €763,000) = €3,696 payable as the social contribution on CIT.

How to Pay the Social Contribution on CIT

Payment follows the same schedule as corporate tax in France, in five installments: four quarterly prepaymentsand a final balance payment.

Each prepayment equals 0.825% of the reference CIT amount. Payments are made via tax form No. 2571, submitted electronically through an EDI partner or via the Professional Account on impots.gouv.fr.

Quarterly Payment Deadlines

Payments are due on: March 15, June 15, September 15, and December 15. The exact deadlines depend on the company’s fiscal year-end.

Exemptions from Prepayments

Companies are not required to make prepayments (paying in a single installment) if:

  • The contribution amount is less than €3,000.
  • The previous year’s corporate tax was below the €763,000 deduction threshold.
  • The company is newly created (first fiscal year).

Final Balance Payment

The balance due is calculated as the total contribution on annual profits, minus prepayments already made. Tax credits, where applicable, are deducted.

The final balance must be paid using tax form No. 2572, submitted electronically by the 15th day of the fourth month following the fiscal year-end. If the fiscal year closes on December 31, payment is due by May 15 of the following year.

Refunds and Overpayments

If an overpayment occurs, the excess amount is automatically refunded within 30 days after the balance form submission. Alternatively, it can be credited toward the first installment of the next fiscal year.