Corporate income tax in France
Over the last few years, we helped many of our customers to set up their business and start their activity in France. The corporate tax system in France can be very different from the system in China or other Asian countries. This article will focus on corporate tax rates evolution as well as declaration and payment deadlines.
The corporate income tax (CIT) is an annual tax levied on the profits made during an annual period by companies operating in France.
A – Tax rate evolution
The standard corporate income tax rate has been gradually lowered as of fiscal years beginning on January 1, 2017 as follows:
- Companies with more than 7.63M € turnover:
| Profits | Fiscal year starting as of 01/01/2020 | Fiscal year starting as of 01/01/2021 | Fiscal year starting as of 01/01/2022 |
| Between 0 € and 38 120 € | 15 % | 15 % | 15 % |
| > 38 120 € | 28 % | 26,5 % | 25 % |
- Companies with less than 7.63M € turnover:
A reduced rate of 15% applies to SMEs that meet the following 2 conditions:
- Gross turnover must be less than 7.63M €
- Capital must be fully paid up and at least 75% must be held by individuals (or by a company applying this criterion)
For the fiscal year beginning in January 2021, due to Covid-19 pandemic, this rate is applicable to SMEs whose gross turnover is less than €10 million.
B – Declaration of results and deadline for filing
The deadline for filing the income tax return depends on the closing date of the accounting period:
- Accounting year closed on December 31st:
The filing must be done at the latest on the 2nd day following May 1st of the next year.
In principle, companies have an additional period of 15 days to file their income tax returns electronically.
If the company has closed its accounting period on December 31, 2021, it has until May 19, 2022 to file its income tax return electronically. The advantage of this administrative tolerance is to be validated each year.
- Accounting year closed between January and November:
The filing must be done at the latest in the 3 months following the closing.
For example, for a fiscal year ending on March 30, the filing must be done before June 30.
As previously mentioned, in principle, companies have an additional period of 15 days to make the electronic transmission of their income tax returns, by electronic means. This is a flexibility granted by the administration since a few years.
C – Declaration of results and deadline for filing
Regardless of the company’s turnover, the payment of the corporate income tax must be made online.
The company must calculate and pay the corporate income tax spontaneously in 4 installments on March 15, June 15, September 15 and December 15. However, for small companies whose corporate income tax is less than €3,000, the payment of a deposit is not necessary.
If you have any further questions regarding tax in France, please feel free to contact us.
