Europe · Tax guide

France

France taxes company profits at 25%, with 15% on the first slice for qualifying SMEs, charges VAT at 20%, and is moving every business to e-invoicing from 1 September 2026. Taxes are administered by the Directorate General of Public Finances (DGFiP).

Updated 1 October 2026 · 21 of 22 figures checked against official sources

Check your obligations

At a glance

Corporate income tax
25%

15% on the first €42,500 for qualifying SMEs

VAT
20%

Reduced rates 10%, 5.5% and 2.1%

E-invoicing
1 September 2026

Every business must be able to receive

Withholding on dividends
25%

Before treaty or EU relief

Property transfer duties
about 5.8% (up to 6.3% in most départements)

Paid by the buyer

Global minimum tax
15%

Groups with revenue of €750 million or more

Corporate income tax (IS)

Companies pay corporate income tax at 25%. SMEs with turnover under €10 million that are at least three-quarters owned by individuals pay 15% on their first €42,500 of profit. Tax is paid in four quarterly instalments and the return is filed in May for calendar-year companies.

Companies with turnover above €500,000 also pay the CVAE business value-added contribution, which is being phased out.

  • Sole traders and partners pay income tax at progressive rates up to 45%, plus social contributions; micro-entrepreneurs can opt for simplified flat-rate regimes.

VAT (TVA)

VAT is charged at 20%, with reduced rates of 10%, 5.5% and 2.1% for items such as restaurants and renovation work, basic foods, and medicines and the press. Returns are monthly for most businesses.

Small businesses under the franchise threshold — €85,000 for sales of goods and €37,500 for services — can choose not to charge VAT.

E-invoicing and e-reporting

From 1 September 2026, every business in France must be able to receive electronic invoices through an approved platform (plateforme agréée). Large and mid-sized companies — turnover over €50 million and a balance sheet over €43 million, or 250 or more staff — must issue e-invoices and report transactions from the same date. SMEs and micro-businesses must issue from 1 September 2027.

Withholding tax on payments abroad

  • Dividends paid to foreign companies: 25%, reduced or removed by treaties and the EU Parent-Subsidiary Directive.
  • Royalties and service fees paid abroad: 25%, reducible by treaty.
  • Payments to non-cooperative states or territories: 75%.

Transfer pricing and the global minimum tax

Related-party transactions must be at arm's length. Companies with turnover or assets of €50 million or more file the annual transfer pricing return (Form 2257); at €150 million or more, full documentation is required. Groups with revenue of €750 million or more file country-by-country reports and are subject to the global minimum tax at 15%.

Property

Buyers of existing property pay transfer duties (droits de mutation) of about 5.8% (up to 6.3% in most départements), collected by the notary; new buildings carry VAT instead. Owners also pay annual property tax (taxe foncière).

Key dates

  • MonthlyVAT return (CA3) for most businesses
  • QuarterlyCorporate income tax instalments (15 March, June, September and December)
  • MayAnnual corporate income tax return for calendar-year companies
  • 1 September 2026All businesses must receive e-invoices; large and mid-sized must issue them
  • 1 September 2027SMEs and micro-businesses must issue e-invoices

Figures and sources

22 figures

Indicative only. This assessment is a high-level overview of French tax obligations based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a French chartered accountant (expert-comptable) or tax lawyer before making compliance decisions.