Corporate tax

Corporate tax in France

Corporate tax in France is 25%, with a reduced rate for small companies and an Innovation Box for income from patents and software.

Quick answer

Corporate tax (IS) is 25%. Qualifying SMEs pay 15% on the first €42,500 of profit. VAT is 20%. Qualifying IP income can be taxed at 10% under the Innovation Box.

Verified Oct 2026 · DGFiP

Company formation Corporate tax Business laws Free zones Banking Visas

Standard rate

25%

SME rate

15%

VAT

20%

Innovation Box

10%

The rates that matter

Rates for 2026.

Tax	Rate	Applies to
Corporate tax (IS)	25%	Taxable profit
SME reduced rate	15%	First €42,500 for qualifying SMEs
VAT	20% / 10% / 5.5% / 2.1%	Standard and reduced supplies
Innovation Box	10%	Net income from patents and protected software
Dividend WHT	12.8% / 25%	Non-resident individuals / companies, often reduced by treaty

Worked example

An SME with €100,000 profit pays 15% on €42,500 and 25% on €57,500, a total of €20,750, or an effective 20.75%.

How it works in practice

Instalments

Companies pay corporate tax in quarterly instalments once tax exceeds €3,000.

Local taxes

The CFE property-based business tax applies from the second year, larger companies also pay CVAE, which is being phased out.

Paying the founder

SAS presidents can take salary, which carries high social charges, or dividends taxed at a flat rate.

Editor's note

The corporate rate is unremarkable, the real French tax cost is social charges on salaries. Model salary versus dividends before you decide how to pay yourself.

Before you start