Taxation 2026: complete guide for businesses and managers

Updated April 2026 - Business taxation is not just a sum of déclarations to fill in and deadlines to respect. It is an architecture of decisions that directly impacts your cash flow, growth and personal wealth. For an SME manager, a business creator or an investor, 2026 requires managing several layers simultaneously: taxable income, VAT, executive rémunération, dividends, real estate and the reporting calendar.

This référence guide reviews all the tax levers to know in 2026, with current rates, legal obligations and optimization paths compliant with French tax law.

In brief: Corporate taxation in 2026 is based on corporate tax at a standard rate of 25% (reduced rate of 15% for SMEs on the fraction of profit not exceeding €45,000), VAT whose basic franchise thresholds remain at €37,500 (services) and €85,000 (sales) following the reform suspension, and a single flat-rate withholding tax of 31.4% on dividends. The 2026 Finance Act (Law No. 2026-103 of February 19, 2026) brings significant adjustments that should be integrated into your management.

Corporate income tax (IS) is the first tax expense for most companies subject to it. Understanding its mechanics is the foundation of any business tax strategy.

Standard rate and reduced rate#

The corporate tax scale in 2026 is structured as follows:

• Standard rate: 25% on all taxable income for companies whose turnover excluding tax exceeds 7.63 million euros.
• SME reduced rate: 15% on the fraction of profit not exceeding €45,000, for companies whose turnover is less than €7.63 million and whose capital is at least 75% held by individuals. The remainder of the profit is taxed at 25%.

The 2026 Finance Act confirmed the maintenance of this scale without structural modification, but adjusted certain rules for calculating taxable income, particularly regarding the deductibility of financial charges and the capital gains régime.

How is taxable income calculated?#

Taxable income is not the same as accounting income. It is obtained by applying extra-accounting reintegrations and deductions to the accounting result:

• Reintegrations: non-déductible expenses (fines, penalties, luxury expenses, non-déductible portion of vehicle depreciation), share of expenses and charges on holdings (5% of net participation income).
• Deductions: long-term capital gains, déficits carried forward from previous years (limited to 50% of profit exceeding €500,000), tax credits (CIR, CII).

Concrete example: An SARL generates an accounting result of €120,000. It reintegrates €5,000 of non-déductible expenses and deducts a carried-forward déficit of €15,000. Its taxable income is €120,000 + €5,000 − €15,000 = €110,000. The corporate tax due is calculated as follows: €45,000 × 15% = €6,750 + (€110,000 − €45,000) × 25% = €16,250, for a total tax of €23,000. The effective tax rate is €23,000 / €110,000 = 20.9%.

Exceptional contribution on large companies#

Companies whose turnover exceeds €250 million remain subject to the exceptional contribution of 3.3% on corporate tax (Article 235 ter ZC of the General Tax Code). This surtax does not affect SMEs but weighs on large groups' taxation.

VAT represents the state's first tax resource and the main reporting obligation for businesses. Mastering it is a pillar of business taxation.

Basic franchise thresholds in 2026#

As of April 4, 2026, the official pages of Service-Public.fr confirm that the reform providing for a generalized lowering of VAT basic franchise thresholds is suspended until the end of 2026. In practice, the applicable thresholds remain:

Exceeding the increased threshold results in VAT liability from the first day of the month of exceeding. Between the basic and increased thresholds, the company has a partial franchise with progressive VAT.

Applicable VAT rates#

• Standard rate: 20% — the vast majority of goods and services.
• Intermediate rate: 10% — catering, passenger transport, energy improvement work.
• Reduced rate: 5.5% — food products, books, live performances.
• Super-reduced rate: 2.1% — reimbursed medicines, press, audiovisual license.

Reporting régimes#

The VAT reporting régime depends on turnover and the company's choice:

• Simplified real régime: annual CA12 déclaration with two semi-annual installments.
• Standard real régime: monthly (CA3) or quarterly déclarations depending on turnover.

To go further, see our guide on VAT for SMEs and our article on the VAT déclaration.

Hayot Expertise Advice: The choice of VAT régime is not insignificant. A premature switch to the standard real régime increases your reporting obligations, but staying too long in the simplified régime can generate cash flow gaps on VAT recovery.

The manager's taxation can never be analyzed in isolation. It must be compared to social security contributions, social protection, personal cash flow needs and overall asset strategy.

The three rémunération levers#

How to choose between salary and dividends?#

The arbitration depends on your social status and objectives:

• Majority manager of SARL (TNS): social contributions are moderate (~45%). Base rémunération is often more tax-efficient than dividends, as it is déductible from corporate tax results. Beyond a certain level, dividends become interesting despite the absence of social rights.
• SAS President (treated as employee): social contributions are high (~80%). Dividends are often preferred because they completely escape social contributions, but generate no pension rights.
• Sole manager of EURL: the TNS régime applies. Rémunération remains the main lever, supplemented by reasoned dividends.

To go further, consult our article dividends vs salary and test our executive rémunération simulator.

In 2026, the manager's personal tax decisions frequently involve real estate. Property ownership, whether professional or private, has a direct impact on both business taxation and personal taxation.

Direct ownership or via SCI?#

The choice of real estate ownership structure strongly influences the tax burden:

• Direct ownership: rental income is taxed on the progressive income tax scale after deduction of actual expenses or application of the 30% flat-rate allowance (micro-property régime if income < €15,000). Property déficits are déductible from global income within the limit of €10,700 per year.
• IR SCI: tax transparency, income is taxed directly in the hands of partners according to the applicable tax category (rental income or BIC if furnished).
• IS SCI: income is subject to corporate tax at the rate of 25%. The capital gain on disposal is taxed under the professional capital gains régime, often more favorable than the private individuals' régime.

Furnished rental: the LMNP régime#

The non-professional furnished lessor (LMNP) status remains a major asset optimization lever in 2026. It allows deduction of all actual expenses and depreciation of the property, reducing the taxable base to zero for many years.

Warning: The 2026 Finance Act has tightened certain conditions for access to the LMNP régime, particularly regarding the classification of tourist furnished properties. Check the impact on your situation before any new investment.

Wealth transmission#

Transmission of real estate and financial assets must be anticipated. The tools available in 2026 include:

• Donation-sharing: renewable allowances every 15 years (€100,000 per child and per parent).
• Property division: transmission of bare ownership with retention of usufruct, reducing the taxable base according to a scale set by Article 669 of the General Tax Code.
• Life insurance: allowance of €152,500 per beneficiary after 8 years of holding.

The best tax optimization remains useless if deadlines are not respected. Here are the key dates of the 2026 corporate tax calendar:

Hayot Expertise Advice: Good taxation is not aggressive. It is documented, consistent and reversible as much as possible. Anticipating deadlines means avoiding late penalties (10% automatic increase) and late interest (0.20% per month).

Tax optimization is not a taboo word. It simply means using the mechanisms provided by law to legally reduce your company's tax burden.

Research tax credit (CIR)#

The CIR remains the main tax reduction lever for innovative companies. It represents 30% of research expenses up to €100 million and 5% beyond. Éligible expenses include researchers' personnel costs, depreciation of research equipment and research subcontracting.

Innovation tax credit (CII)#

Reserved for SMEs, the CII covers 20% of expenses for designing prototypes and testing new products, within the limit of €400,000 of expenses per year (i.e. a maximum credit of €80,000).

Tax exemption schemes#

• Overseas investment (Articles 199 undecies B and 217 undecies of the General Tax Code): reduction of IS or IR for investments made in overseas departments and territories.
• Venture capital companies: partial exemption of capital gains on the disposal of shares in innovative SMEs.
• Young innovative company (JEI): 7-year corporate tax exemption on profits from innovative activity, subject to conditions.

To discover all the measures of the 2026 Finance Act, see our dedicated article: 2026 finance law for SMEs.

We recommend structuring your approach in four steps:

1. Secure the reporting base: VAT compliance, IS, tax return, social obligations. This is the non-negotiable foundation.
2. Measure cash leaks: unrecovered VAT, unoptimized expenses, unclaimed tax credits.
3. Arbitrate rémunération and investments: salary vs dividends, reinvestment vs distribution, debts vs equity.
4. Prepare for transmission: holding company for takeover, donation-sharing, Dutreil pact for business transmissions.

You can complement your reading with our holding taxation service and our accounting expertise.

We work on compliance as much as on tax structuring: management of taxable income, rémunération arbitrations, asset optimization, corporate real estate and transmission preparation. Each situation is the subject of a personalized diagnosis before any recommendation.

Discover our tax support

2026 taxation is no longer managed on a subject-by-subject basis. It is built as a coherent system where business, manager and assets move forward together. With a stable corporate tax rate at 25%, maintained VAT thresholds and a PFU at 31.4% on dividends, the fundamentals are known. The added value of a chartered accountant lies in the ability to articulate these parameters to minimize the overall tax burden while remaining strictly compliant.

(Official sources: Law No. 2026-103 of February 19, 2026 Finance Act, Service-Public Entreprendre - corporate tax and VAT, impôts.gouv.fr - IS scale and tax credits, BOFiP BOI-IS-CHAMP-10-50-10 - SME reduced rate, BOFiP BOI-RPPM-PVBMC - dividend taxation, Commercial Code art. L. 232-10 - legal réservé, Social Security Code art. L. 131-6 - manager social base)