Calculate French Impôt sur les Sociétés at 15% reduced and 25% standard rates.
How does French corporate tax (IS) work?
French corporate tax (Impôt sur les Sociétés) is levied on company profits. The standard rate is 25%. Small businesses (PME) with turnover under €10 million benefit from a reduced rate of 15% on the first €42,500 of profit, with 25% applying to the remainder.
What qualifies as a PME for the reduced rate?
To qualify for the 15% reduced rate, a company must have annual turnover under €10 million, be at least 75% owned by individuals (natural persons), and have fully paid-up share capital. This applies to SARL, SAS, SA, and other corporate forms.
When are corporate tax payments due?
Corporate tax is paid in four quarterly instalments (acomptes) based on the previous year's liability, due on March 15, June 15, September 15, and December 15. The final settlement is due within 3.5 months after the financial year-end.
Can losses be carried forward?
Yes, tax losses can be carried forward indefinitely in France, but the deduction is limited to €1 million plus 50% of the profit exceeding €1 million in any given year. Losses can also be carried back one year (report en arrière) up to €1 million.
Compliance: This calculator uses official French tax rates for 2025. Results are indicative — for complex situations, consult a tax professional.
How French company profits are taxed under the impôt sur les sociétés
What is the French corporate tax rate?
The standard IS rate in 2025 is 25% on all taxable profits. Small and medium companies (turnover under €10 million and at least 75% owned by individuals) benefit from a reduced rate of 15% on the first €42,500 of profit. So a qualifying company earning €80,000 profit pays 15% on the first €42,500 (€6,375) and 25% on the remaining €37,500 (€9,375), totalling €15,750.
Which companies pay IS?
IS is mandatory for SARL, SAS, SA, and SCA companies. An EURL or EARL can opt for IS. Sole traders (entreprises individuelles) are taxed under income tax (IR) by default but can opt for IS since 2022. Once you opt for IS, the choice is irrevocable after the first 5 years. SCI (property companies) are taxed under IR by default but can also opt for IS.
When are the IS payment deadlines?
IS is paid in four quarterly acomptes (advance payments) on 15 March, 15 June, 15 September, and 15 December. Each acompte is 25% of the previous year's tax. The solde (balance) is due 3.5 months after the end of your financial year. For a company with a 31 December year-end, the balance is due by 15 April.
How are dividends taxed when you take money out?
After paying IS on profits, you can distribute dividends to shareholders. Dividends are taxed at the 30% PFU (flat tax) — 12.8% income tax plus 17.2% social charges. On €20,000 of dividends, you pay €6,000 in total tax. Alternatively, you can opt for the barème progressif with a 40% abatement if your marginal rate is below 12.8%.
What is the contribution sociale on profits?
Companies with IS exceeding €763,000 must pay an additional 3.3% social contribution (contribution sociale) on the IS amount minus a €763,000 allowance. This only affects large companies. Small businesses paying less than €763,000 in IS are exempt. On €1 million of IS, the additional contribution is about €7,821.
Can you carry forward losses?
Yes. Losses (déficits) can be carried forward indefinitely and offset against future profits. However, in any given year, you can only offset losses up to €1 million plus 50% of profit above €1 million. A loss of €200,000 from a bad year can be fully offset against next year's €200,000 profit, meaning zero IS that year. You can also carry back losses one year (report en arrière) up to €1 million.
DGFiP-Aligned: Based on 2025 DGFiP rates and thresholds. For personal advice, speak to a qualified expert-comptable (chartered accountant).
Disclaimer: This calculator provides estimates based on current French tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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