Finance Law 2026: Key Takeaways for Your Business

France's Finance Law 2026 (loi n° 2025-1680, published in the Journal officiel on 14 February 2026) introduces significant changes across the full fiscal and social spectrum. Corporate tax, income tax, VAT, employer contributions, CVAE: no area is left untouched.

For most business owners, parsing a budget text running to several hundred articles is a daunting task. This article provides an operational overview: the big picture, the figures that matter, and what you need to plan for concretely. For measures specifically targeting SMEs (reduced corporate tax rate, IR-PME, electronic invoicing), see our dedicated article Finance Law 2026: the 5 key measures for VSEs/SMEs.

The 2026 Finance Bill (PLF 2026) was rejected at first reading in the National Assembly, forcing the government to invoke Article 49.3 to pass a text heavily amended by the Senate. The result is a compromise between fiscal consolidation and support for activity.

The main tax burden falls on large corporations (exceptional corporate tax surcharge for groups with revenue exceeding €1 billion) and certain capital income. SMEs and the self-employed benefit from targeted relief measures. Three key trends emerge:

• ▸Pressure on large groups is maintained — temporary corporate tax surcharge renewed for 2026.
• ▸Administrative simplification advances slowly — a few thresholds raised, reporting obligations marginally eased.
• ▸The CVAE phase-out trajectory is preserved despite calls to freeze it during parliamentary debate.

Extended 15% reduced rate for SMEs

The headline measure: the profit ceiling eligible for the 15% reduced corporate tax rate rises from €42,500 to €100,000 (CGI art. 219 I b, amended by article 31 of the law). Standard rate of 25% applies above this threshold.

Eligibility conditions remain unchanged: turnover below €10 million, fully paid-up capital, held at least 75% by natural persons. Maximum tax saving: €5,312 per financial year for a profitable SME at €100,000 net.

Exceptional contribution for large groups

Companies with turnover exceeding €1 billion remain subject to an exceptional corporate tax surcharge for FY2026. The surcharge rate ranges from 20.6% to 41.2% depending on the revenue bracket, bringing the effective corporate tax rate above 30% for the largest entities.

Depreciation and provisions: no change in 2026

The declining-balance depreciation and regulated provisions regime is unchanged. However, the deductibility of financing costs remains capped at 30% of fiscal EBITDA (ATAD II rules), a key consideration for leveraged holding structures.

Progressive bracket revaluation

The progressive income tax bracket is revalued by 1.8% to account for inflation (2025 income, declared in 2026):

Flat tax maintained at 12.8% but social levies increase

The PFU (flat tax) remains fixed at 12.8% on capital income. However, the CSG increase under LFSS 2026 raises social levies to 18.6%, bringing the global flat tax rate to 31.4%. The option for the progressive bracket remains available and advantageous for households with a marginal rate of 11% or below.

Higher VAT exemption thresholds

• ▸General threshold (goods): raised to €91,900 (from €85,800).
• ▸Services threshold: raised to €36,800 (from €34,400).

The four VAT rates (20%, 10%, 5.5%, 2.1%) remain unchanged. The mandatory electronic invoicing reception deadline (September 2026) will have indirect implications for VAT reporting processes.

CSG increase and impact on social levies

The LFSS 2026 raises the CSG rate on investment income and capital income from 9.2% to 10.6%, bringing total social levies to 18.6%.

SMIC revalued to €1,801.80 as of 1 January 2026

The gross monthly minimum wage rises by 2.2%, impacting employer costs for low-wage positions and the calculation of the general employer contribution reduction (applicable up to 1.6x SMIC).

CVAE: phase-out trajectory confirmed

Maximum CVAE rate lowered to 0.19% for FY2026 (from 0.28% in 2025). Full abolition remains scheduled for 2027. Only companies with turnover above €500,000 are subject to CVAE.

CFE: no national change

The business property tax (CFE) is set by local authorities. Finance Law 2026 introduces no national changes to CFE rates or base. New business exemptions and zone-based reliefs are maintained.

Business property tax revaluation

Cadastral rental values are revalued by +1.7% in 2026, resulting in a slight increase in property tax for commercial property owners.

Finance Law 2026 is not a tax revolution, but it contains numerous technical adjustments that, taken together, can materially affect your tax burden. The SME corporate tax relief, the income tax bracket revaluation, the higher VAT thresholds, and the CVAE phase-out are positive signals for well-managed businesses.

The increase in social levies on capital income, the large-group surcharge, and the SMIC revaluation require a review of your compensation and cash flow decisions for 2026.

Hayot Expertise accompanies you in understanding these measures and translating them into concrete decisions: compensation structure choices, corporate tax base optimisation, and VAT and social obligation planning.

Book a consultation with a Hayot Expertise accountant

What are the main Finance Law 2026 measures for SMEs?

The headline measure is raising the 15% reduced corporate tax rate ceiling from €42,500 to €100,000. Added to this are the 1.8% income tax bracket revaluation, higher VAT exemption thresholds, and the continued phase-out of CVAE (maximum rate at 0.19%). These measures benefit structures with turnover below €10 million.

Does Finance Law 2026 change income tax brackets?

Yes. The progressive income tax bracket is revalued by 1.8% to account for inflation (2025 income declared in 2026). The zero-rate band now extends to €11,520. The five marginal rates (0%, 11%, 30%, 41%, 45%) are unchanged, but all bracket thresholds are raised.

What changes for VAT under Finance Law 2026?

VAT exemption thresholds are raised: €91,900 for trading activities (from €85,800) and €36,800 for services (from €34,400). The four VAT rates (20%, 10%, 5.5%, 2.1%) remain unchanged. The mandatory electronic invoicing reception deadline (September 2026) will have indirect impacts on VAT reporting processes.