Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Tax structuring in France
In 2025, France continues to improve its tax system, offering a more transparent regime for businesses, while introducing new requirements for large companies. For example, the standard corporate income tax rate is 25% (from January 1, 2022) for most companies. Prikhodko & Partners, a law firm specializing in international corporate law and fintech structures, assists clients from Ukraine, the EU and other countries in optimizing their tax burden in France. This material contains key aspects, practical advice and specifics.
Main taxes paid in France
Corporate Income Tax (Impôt sur les sociétés, IS)
Rate 25% for resident companies on profits (from 2022) with the possibility of a reduced rate of 15% on the first €42,500 of profits for SMEs (turnover up to €10 million, 75% of capital owned by individuals).
Value Added Tax (TVA)
Standard rate 20%; reduced rates of 10%, 5.5% or 2.1% for certain goods/services.
Local taxes (CET – Contribution Économique Territoriale)
Includes CFE (business property tax) and CVAE (enterprise value added tax). In 2025, the upper limit rate is ≈ 1.438% of value added.
Personal taxes
Personal income tax (IR, Impôt sur le revenu) is progressive, up to ~45% plus social contributions. Dividends and investor income are subject to a PFU (“flat tax”) of 30% (12.8% tax + 17.2% contributions) for a number of cases.
Reporting and payment deadlines
- Companies usually end their financial year on 31 December; the IS tax return is filed 3 months after the close or by 30 April for normal cases.
- IS advance payments: March 15, June 15, September 15 and December 15 (or depending on the volume).
- VAT (TVA): monthly or quarterly depending on the regime; CFE/CVAE payments – according to the calendar plan.
- Late payment may result in penalties – for example, 0.4% for late payment and a minimum of 5% fine.
Typical package of documents with interesting examples
For a resident company:
- statutes, decision on the appointment of a director, extract “K-bis” (trade and industrial register), financial report, balance sheet, turnover.
- documentation on expenses, depreciation, credit interest expenses.
For individuals / investors:
- IR declaration, tax certificate, confirmation of dividends/income, contracts, payment orders.
An interesting example: an SME with a turnover of €8 million is entitled to 15% IS on the first €42,500 of profit. Prykhodko & Partners advises to prepare documents in advance (statement: translations, apostille) – this will reduce the time between submission and actual payment.
Taxes for LLC (SAS/SARL), FOP (auto-entrepreneur) and individuals (with examples)
LLC (SAS/SARL)
- IS is subject to 25%; for SMEs – 15% up to €42,500.
- With turnover over €7.63 million – social surcharge of 3.3% to IS.
- VAT, CFE/CVAE are added.
Sole proprietorship / auto-entrepreneur
- Reduced regime: taxes + social contributions; income threshold for certain types €72,600 or €176,200.
Individual investors
- Dividends: PFU 30% or optional progressive IR scale.
- For private entrepreneurship (BIC/BNC): income is included in IR.
How do we help with paying taxes?
At Prikhodko and Partners, we provide full support:
- Selection of the optimal structure (SAS vs SARL, holding scheme, residency) taking into account the client’s activities and geography.
- Preparation of a package of documents, translations, apostille; creation of tax calculations (tax memo) with a load forecast.
- Cooperation with French accountants (expert-comptable), submission of IS/IR declarations, preparation for adjustments.
- Practical case: a client from Ukraine created a SAS in France, turnover €6 million — we reduced the effective IS rate to ~18% (15% on the first €42,500 + 25% the rest) + optimized CFE/CVAE.
- Work with auditors and banks: preparation of explanations for financial monitoring, if the business activity is international in nature (fintech, SaaS).
France is one of the most understandable EU jurisdictions in terms of business taxes. The IS rate of 25% and clear incentives for SMEs create a transparent regime. But the detail of the rules (CFE/CVAE, social contributions, different regimes for individuals) requires a professional approach. The Prikhodko & Partners team helps not only to understand the numbers – but also to build a legal and tax structure that meets international business and minimizes risks.
If you are planning to launch or transform a business in France, contact us for a preliminary tax assessment and strategy development that takes into account 2025 and the horizons of 2026.
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