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French corporate tax (IS)

Enter your profit: 15% up to €42,500 if your SME qualifies, 25% above — complete result, free.

2026 rules — verified on September 4, 20266 sourced test cases — re-read on August 26, 2026Free, no account

This content is part of the path: Filing and paying my company's corporate tax· Step 3 of 12· Next step: French corporate-tax instalments calculator

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The taxable profit for the financial year, the figure carried on schedule 2058-A of your return package: the accounting profit adjusted for tax add-backs and deductions. A loss-making year is entered as zero — it produces no tax, and carrying the loss forward is a separate computation.

Tick this only if both capital conditions are met: share capital fully paid up, meaning actually contributed by the shareholders, and held at least 75% by individuals — directly, or through a company itself held 75% by individuals.

Revenue for the financial year, net of VAT. This field only matters if the capital conditions are ticked: it serves solely to check the €10,000,000 cap, above which the reduced rate is lost in full.

Your result

Fill in the fields, then run the calculation: the full breakdown appears here, free of charge.

How this calculation is made

  1. The starting point is the taxable profit for the financial year, not the accounting profit: it is the profit after adding back non-deductible expenses and deducting non-taxable income, as reported on schedule 2058-A of the tax return package.
  2. Eligibility for the reduced rate is then checked against cumulative conditions: share capital fully paid up, held at least 75% by individuals, and net-of-tax revenue of €10,000,000 or less for the financial year.
  3. If those conditions are met, the profit is split into two portions: the portion up to €42,500 is taxed at the reduced rate of 15%, and the portion above it at the standard rate of 25%.
  4. If any condition fails — capital not fully paid up, insufficient individual ownership, or a single cent of revenue above the cap —, the reduced rate is lost in full: the entire profit is taxed at 25%, with no taper and no smoothing.
  5. The tax due is the sum of the two portions, each rounded to the cent; the effective rate shown is that total measured against the taxable profit. Additional and exceptional contributions, tax credits and instalments already paid are not computed here.

Worked example verified against the official source

PME, bénéfice 100 000 €, CA 5 M€ : les deux tranches jouent

A small company that meets the capital and ownership conditions, with a taxable profit of €100,000 for the year on revenue of €5m. Both portions apply: €42,500 × 15% = €6,375, then €57,500 × 25% = €14,375, giving €20,750 of tax and an effective rate of 20.75%. The expected figure was worked out by hand from the tax code before being checked against the engine — never the other way round: if the engine drifted by a single cent, the test suite would fail and the page would not be published.

Case inputs

Taxable profit (€)
€100,000.00
SME conditions met (capital fully paid up and ≥ 75% held by individuals)
yes
Revenue excl. VAT (€)
€5,000,000.00

Expected result — reproduced to the cent by the engine

Corporate tax due
€20,750.00
Portion at the reduced rate (15%)
€6,375.00
Portion at the standard rate (25%)
€14,375.00
Effective rate
20,75 %

Derivation, in the source’s own terms (in French)

Fraction de bénéfice au taux réduit : 42 500 € × 15 % = 6 375 €. Fraction résiduelle au taux normal : (100 000 − 42 500) = 57 500 € × 25 % = 14 375 €. IS dû = 6 375 + 14 375 = 20 750 €, soit un taux effectif de 20,75 % du bénéfice.

Source

entreprendre.service-public.gouv.fr — F23575 — re-read on August 26, 2026

Rule cited : CGI art. 219 I-b — taux réduit de 15 % sur la fraction de bénéfice n'excédant pas 42 500 €, réservé aux entreprises dont le chiffre d'affaires HT n'excède pas 10 000 000 € et dont le capital, entièrement libéré, est détenu pour 75 % au moins par des personnes physiques ; au-delà de cette fraction, le taux normal de 25 % s'applique

Glossary

Taxable profit
Profit for the year after adding back non-deductible expenses and deducting income that is not taxable or already taxed. It is the base for corporate income tax, and it differs from the accounting profit.
Standard rate
The general rate of French corporate income tax, set at 25% and applied to every portion of profit that does not qualify for the reduced rate (CGI art. 219 I).
Reduced rate for small companies
A 15% rate applied to the portion of profit not exceeding €42,500, reserved for companies meeting the capital and revenue conditions (CGI art. 219 I-b).
Fully paid-up capital
Share capital for which the shareholders have actually contributed the whole subscribed amount. As long as a subscribed portion remains unpaid, the reduced-rate condition is not met.
Revenue net of VAT
Sales and services for the financial year, excluding VAT. It is revenue, not profit, that decides access to the reduced rate, under a cap of €10,000,000.
Effective rate
Total tax measured against taxable profit. It sits between 15% and 25% as soon as both portions apply, and shows what the year truly costs, whatever the split between brackets.

Sources and assumptions

Calculation assumptions

  • 12-month fiscal year, taxable profit already determined.
  • Additional and exceptional contributions excluded.

Frequently asked questions about this calculation

My profit exceeds €42,500 — do I lose the reduced rate?

No. The cap limits a PORTION; it does not govern access to the reduced rate. The profit up to €42,500 is still taxed at 15%; only the excess falls under 25%. One extra euro of profit above the cap costs 25 cents — it never puts back in question the €6,375 already computed at the reduced rate.

What if my revenue exceeds €10,000,000?

There the loss is total: the revenue condition opens the reduced rate, it does not merely cap it. One cent too many and the whole profit moves to the standard rate. The calculator raises a warning as soon as that happens and shows where your revenue stands against the cap, because the cost gap on either side is brutal.

Does the reduced rate apply to every company subject to corporate tax?

No: it is reserved for companies whose share capital is fully paid up and held at least 75% by individuals, on top of the revenue condition. A subsidiary held mainly by a company that does not itself meet that condition is excluded, whatever its size.

My financial year is not twelve months — does the result still hold?

Not directly. This calculator assumes a twelve-month financial year, and says so in its assumptions. The revenue cap is assessed per financial year and is adjusted when that year is shorter or longer; the reduced-rate portion follows the same logic. Restate your figures over twelve months before entering them, and have the adjustment checked.

Is the tax shown what I will actually pay?

It is the tax due for the financial year, before deducting instalments already paid and tax credits — research tax credit, family tax credit, and others. The balance payable is that tax less those offsets; it is settled on balance statement 2572-SD, after the income return 2065-SD.

Are the additional contributions to corporate tax included?

No, and that is stated as an assumption: the social contribution on corporate income tax and the exceptional contributions aimed at very large companies are not computed here. They do not reach companies eligible for the reduced rate, whose revenue is by construction far below their trigger thresholds.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.