How does corporate tax work for a French company?
A French company subject to corporate tax (impôt sur les sociétés) pays it on its taxable profit for each accounting period, with a rate set by the tax administration and a reduced rate available to some smaller companies. The company files an annual tax return and pays instalments during the year.
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How it works
Taxable profit starts from accounting profit and is adjusted for items the tax rules treat differently, then reliefs and specific regimes can reduce the amount owed. Some smaller structures, such as certain SARL and EURL forms, can instead opt for personal income tax treatment under conditions set by the administration.
Commonly mixed up with
Corporate tax at the company level and the personal tax owed by shareholders on dividends are separate charges. Profit taxed once in the company can be taxed again at the individual level when distributed.
How does corporate tax work for a French company?
| Knowledge, Paris | Business and finance |
|---|---|
| Short answer | A French company subject to corporate tax (impôt sur les sociétés) pays it on its taxable profit for each accounting period, with a rate set by the tax administration and a reduced rate available to some smaller companies. The company files an annual tax return and pays instalments during the year. |
| How it works | Taxable profit starts from accounting profit and is adjusted for items the tax rules treat differently, then reliefs and specific regimes can reduce the amount owed. Some smaller structures, such as certain SARL and EURL forms, can instead opt for personal income tax treatment under conditions set by the administration. |
| Commonly mixed up with | Corporate tax at the company level and the personal tax owed by shareholders on dividends are separate charges. Profit taxed once in the company can be taxed again at the individual level when distributed. |
| Last reviewed | 2026-08-08 |
Short questions
- Is there a reduced rate for small companies?
- A reduced rate can apply to smaller companies under conditions set by the tax administration.
- Can a company choose income tax instead?
- Some structures can opt for personal income tax treatment for a limited period under set conditions.
- When is the return due?
- The filing deadline is tied to the company's accounting period end, as set by the tax administration.
- Are losses carried forward?
- Losses can generally be carried forward under rules set in the tax code.
- Where is guidance published?
- impots.gouv.fr publishes corporate tax guidance and current rates.
Sources
More in this track
- SAS or SARL in France: what is the difference?
- What are the SIREN and SIRET numbers for a French company?
- When does a business register for VAT in France?
- What does registering as an employer in France involve?
- What is micro-entrepreneur status in France?
- Do you need a French bank account to set up a company?
- EURL or SASU for a single founder in France: what is the difference?
- What social contributions does a French employer pay?
- Branch or subsidiary in France: what is the difference for a foreign company?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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