Finance Law 2026: The 5 key measures for VSEs/SMEs

The 2026 finance law, definitively adopted in February, paints a contrasting tax landscape. While large groups are involved, VSEs and SMEs benefit from several notable support measures. Here are the 5 essential points to remember for your management.

This is undoubtedly the most emblematic measure for small businesses. Previously set at €42,500, the ceiling on taxable profit at the reduced IS rate of 15% is increased to €100,000.

Impact: For an SME making €100,000 in profit, the tax savings can reach €5,750 per year (the difference between 25% and 15% on the bracket from €42.5k to €100k).

Conditions: Turnover excluding tax < €10 million, paid-up capital and 75% owned by individuals.

The IR-PME system, which allows an income tax reduction for investment in SMEs, is refocused on Young Innovative Enterprises (JEI).

• Rate: maintained between 25% and 30% depending on the case.
• Restriction: Subscriptions to FCPIs are now excluded, unless the fund invests at least 50% in JEIs.

The calendar is now set in stone. All businesses subject to VAT must prepare:

• September 2026: Obligation to receive electronic invoices for ALL companies.
• September 2027: Issuance obligation for SMEs, VSEs and micro-entrepreneurs.

Our advice: Don't wait until the last minute. Adopting a compatible workflow tool (like Pennylane or a public portal) from 2026 will simplify your transition.

The time limit for benefiting from the capital gains exemption when selling a family business is extended from 5 to 6 years of ownership.

Attention: “Sumptuary goods” (luxury vehicles, jewelry, etc.) are now explicitly excluded from the calculation of exemptions to avoid abuse of rights.

The Single Flat Tax (PFU), also called Flat Tax, applies to dividends at the overall rate of 31.4%, i.e. 12.8% for income tax and 18.6% for social security contributions (LFSS 2026 increase, CSG increased from 9.2% to 10.6%).

For managers who pay themselves dividends, this Flat Tax at 31.4% generally remains more advantageous than the progressive IR scale when the TMI is above 30% (3rd bracket), since the combination of IR at the progressive scale + 18.6% PS then typically exceeds 31.4%. The progressive scale option remains worth examining for low marginal rates (11% or below), particularly thanks to the 40% allowance on dividends.

The flagship measure of 2026 deserves detailed clarification. The reduced IS rate of 15% applies to the first 100 thousand euros of profit (compared to €42,500 previously), then the normal rate of 25% applies beyond that.

Eligibility conditions#

To benefit from the reduced rate, the company must cumulatively meet these conditions:

1. Turnover excluding tax less than 10 million euros
2. Fully paid-up capital (no unpaid contributions)
3. Capital held at least 75% by natural persons (or by companies themselves 75% owned by natural persons)

Calculation of tax savings#

For an SME with €100,000 in profit, the saving is more than €5,000 per year - a significant amount to reinvest in growth.

The calendar is now set in stone. All businesses subject to VAT must prepare:

• September 2026: Obligation to receive electronic invoices for ALL companies, regardless of their size
• September 2027: Issuance obligation for SMEs, VSEs and micro-entrepreneurs

How to prepare for electronic invoicing 2026#

1. Choose a Partner Dematerialization Platform (PDP) or the Chorus Pro public portal
2. Update your invoicing software to ensure compatibility with the required formats (UBL, CII (French innovation tax credit) or Factur-X)
3. Train your accounting teams in new reception and transmission flows
4. Anticipate e-reporting: even for operations not subject to electronic invoicing (B2C, foreign operations), electronic reporting to the administration will be required

Hayot Expertise supports you in choosing and configuring your Pennylane solution, certified for electronic invoicing.

The Contribution on Business Value Added (CVAE) was announced to be phased out. The 2026 finance law confirms the continuation of this reduction trajectory:

• Maximum rate lowered to 0.19% for 2026 (the reduction trajectory is not frozen)
• Companies whose turnover exceeds €500,000 remain liable
• The calculation base (added value) is unchanged

Point of attention: if your turnover is close to the threshold of €500,000, a turnover management strategy can help avoid triggering the CVAE.

Summary table#

Need an audit of your situation? The experts at Hayot Expertise will support you in optimizing your structure to make the most of these new measures.

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