🇫🇷 Corporate Tax in France

Headline rate: 25%

Simplified Joint-Stock Company (SAS)

The standard corporate tax rate is 25% on all taxable profits (reduced from 33.33% over 2018–2022). SMEs with turnover under €10 million benefit from a reduced 15% rate on the first €42,500 of profits. The Crédit Impôt Recherche (CIR) provides a 30% tax credit on qualifying R&D expenditure up to €100 million and 5% above that threshold — one of the most generous R&D incentives in the OECD. The Crédit Impôt Innovation (CII) offers a 20% credit on innovation expenditure (up to €400,000) for SMEs. France has a participation exemption: 95% of qualifying dividends received from subsidiaries are exempt (effectively 1.25% tax on dividends). Long-term capital gains on qualifying participations (held 2+ years) are 88% exempt. Withholding tax on dividends is 25% (reduced under treaties), with 0% under the EU Parent-Subsidiary Directive for qualifying EU parents.

Limited Liability Company (SARL)

Subject to the same corporate tax regime as the SAS: 25% standard rate, 15% reduced rate on first €42,500 for qualifying SMEs. The SARL can optionally elect for personal income tax treatment (impôt sur le revenu) for the first five years — profits are then taxed in the hands of the associates at their personal marginal rate. This option is useful for early-stage companies with losses. The same CIR, CII, participation exemption, and withholding tax provisions apply.

Key Facts

Double tax treaties: 125
Memberships: EU, WTO, G7, G20, NATO, Eurozone, Schengen, UN
Legal system: Civil law
Fiscal year: Company chooses (calendar year default)

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.