France taxes company profits at 25%, with a 15% rate on the first 42,500 euros for small, individually owned companies. For the largest groups, the 2026 finance law extended a temporary surcharge of 20.6% or 41.2% of corporate tax for a second year. VAT is 20% at the standard rate, and the e-invoicing reform started on 1 September 2026 for large and mid-sized companies, with smaller businesses following on 1 September 2027. Accounts must be filed annually, and a statutory auditor is required above set size thresholds.
Corporate tax and the large-company surcharge
The standard corporate tax rate is 25%. Companies with turnover of no more than 10 million euros whose fully paid-up capital is at least 75% owned by individuals pay 15% on the first 42,500 euros of profit. A French subsidiary of a foreign corporate group will not usually meet the ownership test. Returns are filed electronically within three months of year-end (around mid-May for calendar-year companies), and tax is paid in four quarterly instalments with a balance in the fourth month after year-end.
The exceptional contribution on the profits of large companies, introduced by the 2025 finance law, was extended by article 12 of the 2026 finance law (Law no. 2026-103 of 19 February 2026). It covers the first two financial years closing on or after 31 December 2025. It applies where turnover reaches 1 billion euros (current or previous year) for the first year and 1.5 billion euros (current year only) for the second year. The rate is 20.6% of the average corporate tax of the current and previous years, or 41.2% from 3.1 billion euros of turnover. It is not deductible. Groups near the thresholds should model it, because it raises the effective rate well above 25%.1234567
VAT and the e-invoicing reform
VAT is charged at 20% (standard), 10% (intermediate, for example restaurant meals) and 5.5% (reduced, for example most food). Businesses under the normal regime file and pay monthly through their impots.gouv.fr professional space, between the 15th and 24th of the following month.
The e-invoicing reform is now live. Since 1 September 2026 every business in scope must be able to receive electronic invoices through an approved platform (plateforme agréée), and large and intermediate-sized companies must issue domestic business-to-business invoices this way and send e-reporting data to the tax authority. Small and medium-sized enterprises and micro-enterprises must issue e-invoices from 1 September 2027. Fines apply per invoice. The DGFiP has said it will be pragmatic in 2026 where a business can show a real, documented difficulty that it is correcting, but this does not postpone the obligation. Foreign suppliers without a French establishment should check the separate DGFiP guidance on e-reporting.89101112
Cross-border payments, transfer pricing and Pillar Two
Under domestic law, dividends paid to foreign companies bear 25% withholding tax. The rate is 0% for qualifying EU or EEA parents holding at least 10% for two years, and 75% for payments to non-cooperative states or territories. Interest is generally free of withholding. Royalties bear 25% unless a treaty or the EU directive applies. Branches of non-EU companies pay an additional 25% branch tax on after-tax profits, which treaties often reduce. These rates come from a secondary source and should be checked against the applicable treaty, which France publishes on impots.gouv.fr together with versions consolidated for the OECD Multilateral Instrument.
Entities with turnover or gross assets of 150 million euros or more, or linked to such an entity, must hold transfer pricing documentation ready for a tax audit. From 50 million euros they also file an annual light transfer pricing return. France has implemented the Pillar Two 15% global minimum tax in articles 223 VJ to 223 WZ of the tax code, with specific notification and GloBE information return forms. The first return campaign was extended to 1 September 2026.131415161718
Accounts, audit and filing
SA and SARL accounts must be approved within six months of year-end, and SAS shareholders set the period in the articles. Accounts are filed with the commercial court registry within one month of approval, or two months if filed online. Micro and small companies can keep their accounts, or at least their income statement, confidential. Foreign companies registered in France file a copy of the accounts prepared in their home state.
A statutory auditor (commissaire aux comptes) must be appointed for six financial years once a company exceeds two of three thresholds: 5 million euros of total assets, 10 million euros of turnover or 50 employees. Lower thresholds apply to parent companies of small groups.192021
| Item | Rate or threshold | Notes |
|---|---|---|
| Corporate tax, standard | 25% | All profits made in France |
| Corporate tax, SME rate | 15% on first 42,500 euros | Turnover up to 10 million euros; at least 75% held by individuals |
| Large-company exceptional contribution | 20.6% or 41.2% of average corporate tax | Years closing from 31 December 2025, two years; turnover 1 billion euros (year 1) or 1.5 billion euros (year 2); 41.2% from 3.1 billion euros |
| VAT | 20% / 10% / 5.5% | Standard, intermediate, reduced |
| Dividend withholding (non-resident company) | 25%; 0% EU/EEA parent; 75% non-cooperative jurisdiction | Secondary source; treaty rates may apply |
| Transfer pricing documentation | 150 million euros turnover or gross assets | Light annual return from 50 million euros; CbCR from 750 million euros |
| Statutory audit | 2 of: 5 million euros assets, 10 million euros turnover, 50 employees | Six-year mandate |
How it works, step by step
- Tax registration follows automatically from the registration filing; activate the professional space on impots.gouv.fr to file and pay online.229Direction générale des Finances publiques (DGFiP)
- Choose and connect to an approved e-invoicing platform so that electronic invoices can be received (and, for large and mid-sized companies, issued).1012DGFiP-approved platform
- File VAT returns monthly (normal regime) and pay corporate tax instalments quarterly.79DGFiP
- Approve the annual accounts, file the corporate tax return and file the accounts with the registry.620Shareholders; DGFiP; commercial court registry
No timings or fees are shown unless an official source states them.
Documents usually needed
- Corporate tax return form 2065 with schedules 2050 to 2059 (normal regime)
- Monthly VAT return (CA3)
- Transfer pricing documentation and light return form 2257 where thresholds are met
- Pillar Two forms 2065-INT-SD, 2259-SD and 2272-SD for groups in scope
- Approved annual accounts and, where required, the statutory auditor's report
Common mistakes
- Assuming the 15% SME rate applies to a subsidiary of a foreign company; the 75% individual-ownership test usually rules it out.
- Ignoring the extended large-company contribution when forecasting the 2026 effective tax rate of a French group near the 1 or 1.5 billion euro turnover thresholds.
- Treating e-invoicing as a 2027 issue: all businesses in scope have had to be able to receive e-invoices through an approved platform since 1 September 2026.
- Paying dividends or royalties abroad at a treaty rate without holding the residence and beneficial ownership evidence the treaty and French procedure require.
- Missing the transfer pricing light return deadline, which runs six months after the corporate tax return deadline.
When the business crosses borders
- Treaty relief from withholding tax must be checked treaty by treaty, using the consolidated texts that reflect the Multilateral Instrument.
- Groups subject to Pillar Two must coordinate French filings with the ultimate parent's GloBE information return.
- Foreign businesses without a French establishment but with French VAT obligations should read the DGFiP guidance on e-reporting for non-established businesses.
Questions businesses ask
Is the large-company surcharge still in force in 2026?
Yes. The 2026 finance law extended it to the first two financial years closing on or after 31 December 2025. In the second year it applies only where turnover is at least 1.5 billion euros.34
When must my French company issue e-invoices?
Large and intermediate-sized companies have had to since 1 September 2026. SMEs and micro-enterprises must from 1 September 2027. All businesses in scope have had to be able to receive e-invoices through an approved platform since 1 September 2026.1011
When does a French subsidiary need a statutory auditor?
When it exceeds two of three thresholds: 5 million euros of total assets, 10 million euros of turnover or 50 employees. The appointment runs for six financial years.19
What this guide does not yet confirm
These points need checking with a qualified local professional in France before you rely on them.
- Non-resident withholding tax rates, branch tax and transfer pricing thresholds come from a secondary source (PwC, reviewed April 2026); no official French page stating them was opened.
- Withholding tax on service fees paid abroad (CGI article 182 B) was not confirmed.
- The 2.1% VAT rate and sector-specific rates were not confirmed on a page opened for this guide.
- How companies are classed as large, intermediate, SME or micro for the e-invoicing timetable, and the per-invoice fine amounts, were not stated on the DGFiP pages opened.
- Pillar Two revenue threshold and the start dates of the income inclusion rule, undertaxed profits rule and domestic top-up tax were not confirmed on a French official page.
- Local business taxes (CFE and CVAE) and payroll tax were not researched.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The standard corporate income tax (impôt sur les sociétés) rate is 25% on profits made in France.
Legal basis: Code général des impôts, article 219.
A reduced 15% corporate tax rate applies to the first 42,500 euros of profit for companies with turnover of at most 10 million euros whose fully paid-up capital is at least 75% held by individuals, directly or through a company meeting the same test. Profit above 42,500 euros is taxed at 25%. Turnover is pro-rated to 12 months where needed.
The 2026 finance law (Law no. 2026-103 of 19 February 2026, article 12) extended the exceptional contribution on the profits of large companies so that it applies to the first two financial years closing on or after 31 December 2025. Originally created by article 48 of the 2025 finance law (Law no. 2025-127 of 14 February 2025).
The exceptional contribution applies to the first extended financial year where turnover is at least 1 billion euros in that year or the previous year, and to the second year only where turnover in that year is at least 1.5 billion euros. Turnover thresholds assessed at tax-group level for consolidated groups; smoothing bands between 1 and 1.1 billion euros (first year) and 1.5 and 1.6 billion euros (second year).
The exceptional contribution is levied at 20.6% of the base where turnover is below 3 billion euros and at 41.2% where turnover is 3.1 billion euros or more, with a linear increase between 3 and 3.1 billion euros. The base is the average corporate tax due for the current and previous financial years, before tax credits. The contribution is not deductible. The surcharge applies only to companies with French turnover above EUR 1 billion (EUR 1.5 billion in the second year), with a phase-in band up to EUR 1.1 billion and EUR 1.6 billion.
Companies taxed under the normal real regime must file the corporate tax return (form 2065 with the 2050 to 2059 schedules) electronically within three months of year-end; for a 31 December 2025 year-end the deadline was 20 May 2026 including the 15-day administrative extension. For calendar-year companies the statutory date is the second working day after 1 May.
Corporate tax is paid in four quarterly instalments on 15 March, 15 June, 15 September and 15 December, with the balance due by the 15th day of the fourth month after year-end. No instalments where corporate tax is below 3,000 euros, or for a newly created company in its first year.
France applies VAT at a standard rate of 20%, an intermediate rate of 10% and a reduced rate of 5.5%. Rates depend on the goods or service; for example restaurant meals 10%, alcoholic drinks 20%, most retail food 5.5%. A 2.1% rate also exists for specific items but was not confirmed on a page opened for this guide.
Businesses under the normal real VAT regime file and pay VAT monthly, between the 15th and 24th of the following month, online through their impots.gouv.fr professional space; if annual VAT due is below 4,000 euros returns may be quarterly. Normal regime applies above 945,000 euros turnover for sales or accommodation and 286,000 euros for services; a simplified annual regime and a VAT franchise exist below these levels.
From 1 September 2026 all VAT-registered businesses in scope must be able to receive electronic invoices through an approved platform (plateforme agréée), and large and intermediate-sized companies must issue e-invoices through such a platform and transmit e-reporting data. Domestic invoicing between businesses; invoices to private individuals are outside e-invoicing but other data transmission rules apply.
From 1 September 2027 the obligation to issue electronic invoices and transmit transaction and payment data extends to small and medium-sized enterprises and micro-enterprises. Before that date they may join voluntarily, but customers cannot legally require it.
E-invoices must be issued, transmitted and received through an approved platform (article 289 bis of the Code général des impôts), with per-invoice fines under article 1737 and, for failure to use a platform for receipt, a three-month formal notice before any fine. The DGFiP states it will not apply automatic penalties during the start-up phase where a real, documented difficulty is being corrected; this does not postpone the obligation.
Dividends paid to non-resident companies are subject to French withholding tax at 25% by default, reduced to 0% for qualifying EU or EEA parent companies holding at least 10% for two years, and increased to 75% for payments to a non-cooperative state or territory. Treaty rates may reduce the 25% rate. Conditions for the EU/EEA exemption include beneficial ownership.
Secondary source (last reviewed 24 April 2026). No official French page opened for this guide stated the non-resident withholding rates; confirm against CGI articles 119 bis and 187 and BOFiP.
France generally does not levy withholding tax on interest paid to non-residents, except for payments to a non-cooperative state or territory (75%) and some legacy instruments, while royalties paid abroad are subject to withholding at 25% unless a treaty or the EU interest and royalties exemption applies. EU royalty exemption requires at least 25% association held for two years.
Secondary source (last reviewed 24 April 2026). Withholding on service fees under CGI article 182 B was not confirmed.
Profits of a French branch of a non-EU company are subject to an additional 25% branch tax on after-tax profits, refundable to the extent of dividends actually distributed within 12 months; branches of companies headquartered in the EU or EEA can be exempt under conditions. Treaty rates may reduce or remove the branch tax; 75% rate for companies in a non-cooperative state or territory.
Secondary source (last reviewed 24 April 2026); confirm against CGI article 115 quinquies.
Companies with annual turnover or gross assets of at least 150 million euros, or linked by 50% or more to such an entity, must hold full transfer pricing documentation available at the start of a tax audit, and those at 50 million euros or more must file an annual light transfer pricing return (form 2257). Country-by-country reporting applies to groups with consolidated turnover of at least 750 million euros. Documentation penalty: the greater of 5% of profits deemed transferred or 0.5% of undocumented transactions, minimum 50,000 euros per year.
Secondary source (last reviewed 24 April 2026); confirm against Livre des procédures fiscales articles L13 AA and L13 AB and CGI article 223 quinquies B.
France has transposed the Pillar Two 15% global minimum tax (EU Directive 2022/2523) in articles 223 VJ to 223 WZ of the Code général des impôts, with filings on forms 2065-INT-SD (group notification), 2259-SD (GloBE information return) and 2272-SD (liquidation statement). Multinational and large domestic groups within the GloBE scope. The DGFiP extended the first GloBE information return campaign to 1 September 2026.
The 750 million euro consolidated revenue threshold and IIR/UTPR/QDMTT start dates were not stated on the page opened; they follow the EU directive.
France publishes its bilateral tax treaties on impots.gouv.fr, including consolidated versions modified by the OECD Multilateral Instrument, which France signed on 7 June 2017 and which entered into force on 1 January 2019. Treaty-by-treaty application dates of MLI provisions vary.
The page does not state a total number of treaties.
A company must appoint a statutory auditor (commissaire aux comptes) when it exceeds two of three thresholds: total balance sheet of 5 million euros, turnover excluding VAT of 10 million euros, or 50 employees. Applies to SARL, EURL, SA, SAS, SCA, SNC and SCS. Lower thresholds (2.5 million / 5 million / 25 employees) apply to parent entities of small groups. Mandate lasts six financial years.
SA and SARL accounts must be approved within six months of year-end, and companies must file their annual accounts with the commercial court registry within one month of approval, or two months if filed electronically through the Guichet des formalités des entreprises. SAS shareholders set the approval period in the articles; six months is usual. Micro and small companies may file a confidentiality declaration (micro: two of balance sheet 450,000 euros, turnover 900,000 euros, 10 employees; small: 7.5 million euros, 15 million euros, 50 employees).
Foreign companies registered in France must file a copy of the accounting documents drawn up in their home state. Applies to foreign companies with a French registration such as a branch.
Since 1 January 2023 all company creation, modification and cessation formalities must be completed online through the Guichet des formalités des entreprises, which replaced the former business formalities centres (CFE). All companies, whatever their legal form or activity. The portal is operated by INPI (formalites.entreprises.gouv.fr).
The service page does not name the operator in text; the portal formalites.entreprises.gouv.fr carries the INPI logo and the page links to INPI e-procédures accounts.
Questions on this topic
21 statements on tax, accounting and statutory reporting in France
