Taxation and business taxes: 2026 guide

Updated March 2026 - Taxation and corporate taxes form a complex ecosystem that goes far beyond just corporate tax. VAT, IS, CFE, advance payments, withholding taxes, taxation of distributions: each manager must understand how these pieces fit together to avoid surprises at the end of the financial year.

In summary: a company domiciled in France is subject to at least VAT (collected and déductible according to the rates in force: 20%, 10%, 5.5% or 2.1%), corporate tax at the common law rate of 25% (or IR for micro-enterprises and partnerships), the corporate property tax (CFE) due each December, and reporting obligations spread over the course of the year. the year. Managing these taxes requires a rigorous timetable and a cross-reading of the results.

Each legal structure triggers a différent tax perimeter. Here are the main taxes you will encounter:

• VAT — value added tax collected from your customers and remitted to the State, after deduction of the VAT incurred on your purchases. The tax régime (normal real, simplified or basic franchise) depends on your annual turnover.
• Corporate tax (IS) — common law rate set at 25% on taxable profit in 2026. SMEs still benefit from the reduced rate of 15% on the fraction of profit not exceeding €42,500 (subject to conditions of turnover and capital holding).
• Income tax (IR) — applies to micro-enterprises, non-optional EURLs, transparent SCIs and certain partnerships. The profit is taxed directly in the name of the operator or partners.
• Business property tax (CFE) — annual local tax based on the rental value of your business premises. The amount varies depending on your municipality and your référence turnover.
• Contribution on the added value of companies (CVAE) — due by companies whose turnover exceeds €500,000. Its scale has been profoundly reformed in recent years.
• Additional taxes — payroll tax, territorial economic contribution, sectoral taxes (sweetened drinks, waste, etc.) depending on your activity.

IS remains the central tax for capital companies (SARL, SAS, SA). Here are the key points to remember for 2026:

• Normal rate: 25% on the entire taxable profit.
• Reduced rate: 15% on the fraction of profit ≤ €42,500, reserved for SMEs whose turnover is less than €10 million and whose capital is at least 75% owned by individuals.
• Social contribution of 3.3% — added to the IS when the amount of tax exceeds €763,000.

The tax result does not always correspond to the accounting result. Reinstatements (fines, non-déductible expenses, excess depreciation) and deductions (déficit carryover, tax credits) modify the tax base. It is precisely on these adjustments that the legal optimization of your tax burden depends.

VAT represents the main tax resource of the French State. In 2026, four rates coexist:

The déclaration régime depends on your turnover:

• VAT-based franchise — no VAT to invoice or declare if your turnover remains below the thresholds (€91,900 for sales activities, €36,800 for services in 2026).
• Simplified régime (RSI) — an annual déclaration (CA12) with two half-yearly installments.
• Normal real régime — monthly or quarterly déclaration (CA3) with obligatory online payment.

Attention to the franchise threshold: exceeding the thresholds results in VAT liability from the 1st day of the month of excess. Monthly monitoring of your turnover is essential.

Companies subject to IS whose tax amount for the previous financial year exceeds €3,000 must pay four quarterly installments. Each installment represents 25% of the IS of the previous financial year, calculated on the basis of the result of the last closed financial year.

Deadlines for 2026:

• 1st installment — March 15, 2026
• 2nd installment — June 15, 2026
• 3rd installment — September 15, 2026
• 4th installment — December 15, 2026

If your result for the current year is decreasing, you can adjust or cancel your deposits without penalty, provided you can justify a sufficient drop in profit. Conversely, underpayment results in an increase of 5% on the difference.

To delve deeper into this subject, consult our article dedicated to IS Deposits.

The business property tax (CFE) is a local tax due each year by any natural or legal person carrying out a self-employed professional activity on a regular basis. Its amount depends on two éléments:

• the rental value of the real estate used for your activity (municipal basis);
• the talet voted by your municipality and your intercommunity.

Companies with a turnover of less than €5,000 are exempt. A temporary exemption may also apply when creating a business or in certain zones (ZRR, QPV).

Reduction options:

• check the cadastral rental value with the land service — errors are common;
• request exemption if you work at home without a dedicated space;
• anticipate changes in location which modify the municipal rate.

A company's tax calendar is not limited to IS and VAT deadlines. Here are the statements you should watch out for:

• Déclaration of results (tax package no. 2065) — to be filed within three months following the end of the financial year (or within two months for financial years ending after December 31, 2025, depending on current developments).
• VAT déclarations (CA3 or CA12) — monthly or annual depending on your plan.
• CFE déclaration — included in the déclaration of actual results for companies; specific déclaration no. 1447-C for others.
• Déclaration of fees (n°2460) — before May 1 of each year, for amounts paid to third parties (lawyers, consultants, etc.).
• Intra-community VAT déclaration (DEB/DES) — deleted for exchanges of goods since 2022, but the summary déclaration of services (no. 3514) remains for intra-community services.

Failure to comply with these obligations results in automatic penalties: 10% increase for late déclaration, late payment interest of 0.20% per month, and in certain cases fixed fines.

For a complete overview of deadlines, see Taxation 2026 and Taxation and déclarations: VAT, IS, installments.

Controlled taxation is based on three pillars:

1. A reliable calendar — each deadline must be entered in your management tool, with advance reminders. Delay is the number one source of avoidable penalties.
2. Regular accounting reconciliation — the tax result is built month by month. Waiting until closing to discover a VAT discrepancy or a forgotten reinstatement is expensive.
3. Rigorous documentation — intra-group treasury agreements, minutes of decisions, proof of charges: each élément must be archived and traceable in the event of an audit.

Hayot Expertise Advice: A well-managed fiscally company is not only one that pays its taxes on time. She is the one who knows how to explain each balance, each discrepancy and each arbitration.

We organize the company's taxation as a management system: calendar, control, structuring and securing flows.

Structure the taxation of your business

In 2026, taxation and business taxes must be read together. It is this global vision that reduces errors, improves cash flow and secures compliance. Each tax interacts with the others: a choice of VAT régime impacts your cash flow, a tax reintegration modifiés your IS, and a poorly anticipated CFE burdens your end-of-year budget.

(Official sources: impôts.gouv.fr - taxation of results, impôts.gouv.fr - déclaration and payment of VAT, Service-Public.fr - corporate taxation)