Question 1

What are the official corporate tax (IS) rates in France?

Accepted Answer

The statutory standard rate of French corporate tax (Impot sur les Societes - IS) is 25.0%. Eligible small and medium enterprises (PME) benefit from a preferential reduced rate of 15.0% on the first €42,500 of taxable profit.

Question 2

Who qualifies for the 15% reduced SME corporate tax rate?

Accepted Answer

Under Article 219-I-b of the CGI, a company qualifies for the 15% rate if its annual turnover does not exceed €10,000,000, its capital is fully paid up, and at least 75% of its share capital is continuously owned by individuals (or qualifying parent SMEs).

Question 3

How are corporate dividends taxed when distributed to shareholders?

Accepted Answer

Dividends paid to individual tax residents in France are subject to the Single Flat-Rate Withholding Tax (Prelevement Forfaitaire Unique - PFU or Flat Tax) of 30.0%, consisting of 12.8% income tax and 17.2% social contributions (CSG/CRDS). Shareholders may alternatively elect for the progressive income tax scale with a 40% rebate.

Question 4

What is the social contribution on profits (Contribution Sociale sur l'IS)?

Accepted Answer

Large corporations with turnover exceeding €7,630,000 and total IS liability exceeding €763,000 pay an additional 3.3% social surcharge on the portion of IS exceeding €763,000.

Question 5

How does tax loss carry-forward operate in France?

Accepted Answer

Fiscal deficits can be carried forward indefinitely against future corporate profits, capped at €1,000,000 plus 50% of the taxable profit exceeding €1,000,000 per financial year. Alternatively, a 1-year carry-back (report en arriere) is permitted up to €1,000,000 against the prior year's profit.

Tax Bracket / Status	Applicable Rate	Profit Threshold	Turnover Condition	Legal Reference
Reduced SME Rate (Taux reduit PME)	15.0%	Up to €42,500	< €10,000,000 & 75%+ individual ownership	CGI Art. 219-I-b
Standard Corporate Rate (Taux normal)	25.0%	Above €42,500 (or all profit for non-SME)	All companies regardless of turnover	CGI Art. 219-I
Social Surcharge (CSIS)	3.3% on IS > €763k	IS liability > €763,000	≥ €7,630,000 turnover	CGI Art. 235 ter ZC
Dividend Flat Tax (PFU)	30.0%	On distributed shareholder dividends	12.8% Income Tax + 17.2% Social Charges	CGI Art. 200 A

France Corporate Tax (Impot sur les Societes) Calculator

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Engr. Muhammad Shahzad

📊 Bareme Officiel URSSAF, DGFiP et Cotisations Sociales de France