Year-end tax planning 2026: 12 actions before 31 December

For a business owner, the end of the year is not the time to "find expenses", but the time to take, while it is still possible, the decisions that lock in the company's 2026 profit and the owner's own tax. This guide lists twelve lawful actions, quantified against the 2026 ceilings, and separates what genuinely reduces tax from what merely defers it.

Quick answer. Year-end tax planning for 2026 means deciding before 31 December 2026 what can no longer be decided afterwards: the owner's pay, PER pension contributions (up to 10% of 2025 earned income, capped at €37,680), assets brought into service, justified provisions and donations. Since 1 January 2026, dividends bear a 31.4% flat tax (PFU).

Before 31 December 2026, a business owner should first estimate the year's profit, then decide on pay, pension contributions, investment and donations, documenting each decision. The twelve actions below follow the order in which we handle them at the firm, for a company with a 31 December year-end.

1. Estimate the 2026 profit from interim accounts drawn up at the end of October or November.
2. Check eligibility for the reduced corporate tax rate, including group turnover.
3. Weigh pay against dividends for the owner, on a total-cost basis.
4. Plan dividends and, where relevant, request the withholding exemption before 30 November.
5. Contribute to the PER within your 2026 ceiling.
6. Schedule genuinely useful investment and its entry into service.
7. Expense small equipment of €500 or less excluding VAT where appropriate.
8. Book provisions justified by events known before year-end.
9. Allocate income and expenses to the correct financial year.
10. Organise corporate giving within the statutory ceilings.
11. Plan the owner's personal donations.
12. Document every decision: minutes, agreements, supporting documents.

This list covers the decisions to be taken before year-end; the accounting close itself is covered in our 2026 year-end closing checklist.

The ceilings and rates below apply in 2026; they drive most year-end decisions.

Yes, especially if the company belongs to a group. The 15% reduced rate applies to the first €42,500 of profit where turnover excluding VAT does not exceed €10 million and the fully paid-up share capital is at least 75% held by individuals or by companies that themselves meet these conditions.

The Conseil d'État has ruled that the turnover to be used for a company belonging to a group is that of the group, whether or not it is tax-consolidated. The tax authority invited companies that had wrongly applied the reduced rate to correct their 2023 and 2024 returns before 20 May 2026, without penalties.

In practice, a "holding company plus several subsidiaries" structure, each below €10 million but above it in aggregate, should review its 2026 corporate tax calculation before managing its profit. Rates and instalments are detailed in our article on corporate tax in 2026.

Additional pay is decided before year-end because it reduces the year's taxable profit, whereas dividends are voted after year-end out of profit that has already borne corporate tax. The comparison must therefore be made on a total-cost basis, company and owner combined.

For €10,000 of gross dividends, the 31.4% flat tax takes €3,140: the owner receives €6,860. Upstream, the company had to earn €11,765 of pre-tax profit at the 15% rate, or €13,333 at the 25% rate. The overall tax burden therefore reaches about 41.7% in the 15% band and 48.5% in the 25% band, before any social contributions.

For a majority manager (gérant majoritaire) of a SARL or EURL, the portion of dividends exceeding 10% of share capital, share premium and shareholder current account balances is subject to self-employed social contributions, which changes the calculation. The highest-income households must also factor in the differential contribution on high incomes, renewed by the 2026 Finance Act, which targets a minimum effective tax rate of 20%.

The last row shows a tendency, not a rule: only a simulation on your own figures settles the question. We set out the method in our article dividend or salary in 2026 with a 31.4% flat tax.

In practice. Two November dates matter. First, the interim accounts should be ready by mid-November to allow time for a formalised pay decision. Second, if your 2025 reference tax income is below €50,000 (single) or €75,000 (couple) and dividends are planned for 2027, the exemption certificate for the 12.8% withholding must reach the company before 30 November 2026. The exemption does not remove the tax: it only avoids paying it in advance.

An interim dividend remains possible during the year where an interim balance sheet certified by a statutory auditor shows a distributable profit (Article L. 232-12 of the Commercial Code): see our article on interim dividends.

Yes, if you have an available ceiling and your current marginal tax rate is higher than the one you expect in retirement. To be deducted from 2026 income, the contribution must be made before 31 December 2026, within 10% of 2025 earned income, capped at €37,680, with a minimum of €4,710.

The available ceiling is shown on your 2026 tax notice, under "plafond épargne retraite". The 2026 Finance Act extends the carry-forward of unused ceilings from three to five years, under transitional rules set out by the tax authority, and removes the deduction for contributions made from age 70, for contributions paid since 1 January 2026.

A self-employed owner has a specific ceiling calculated on taxable profit (Article 154 bis CGI), which is often higher. The full strategy, including lump-sum withdrawal, is covered in our guide to the business owner's PER in 2026.

Our view. The PER does not remove tax, it defers it: a lump-sum withdrawal is taxed on the part matching deducted contributions. At the firm, we advise only contributing money you will not need before retirement, and checking the ceiling before any December transfer: the excess is not deductible. Also allow for the provider's processing times.

Yes, but the effect on 2026 corporate tax is small, because an asset is depreciated from the date it enters service and pro rata to the time elapsed. Equipment costing €12,000 excluding VAT, depreciated over three years and brought into service on 15 December 2026, generates only about €180 of depreciation for the year, a corporate tax saving of about €27 at the 15% rate.

Two exceptions deserve attention. Tools, equipment and office furniture with a unit value of €500 or less excluding VAT may be expensed immediately, under a tolerance published in the BOFiP (official tax guidance). Some investments also qualify for an exceptional deduction: see our article on 2026 enhanced depreciation.

The practical conclusion: a purchase is only justified by a real need. The cash spent almost always exceeds the year's tax saving.

A provision is deductible where it covers a clearly specified loss or expense, made probable by events in progress at year-end, and is actually recorded in the accounts (Article 39, 1-5° CGI). A receivable from a customer in insolvency proceedings or an employment tribunal claim already filed are typical examples.

Income allocation follows the accrued-receivables principle (Article 38, 2 bis CGI): a sale belongs to the year of delivery, a service to the year of its completion. Delaying an invoice until January therefore does not shift the income if the service was completed in December. How to calculate and support provisions is covered in our article on provisions for litigation and risks.

A company that donates to a public-interest body receives a tax reduction of 60% of the amount given, counted up to €20,000 or 0.5% of turnover excluding VAT if higher; any excess can be carried forward over the next five financial years. The recipient's tax receipt and form no. 2069-M-FC-SD are essential. The conditions are detailed in our article on corporate donations to associations.

Personally, the owner receives a 66% reduction up to 20% of taxable income, and 75% up to €2,000 for donations paid in 2026 to bodies helping people in difficulty. The donation must be paid before 31 December to count against 2026 income.

The 2026 Finance Act created, in Article 235 ter C CGI, a tax on certain assets not used in an operating activity held by family holding companies, applicable to financial years ending on or after 31 December 2026. It targets a closed list of assets (including non-business vehicles, pleasure boats, jewellery, wines and spirits) held by holding companies whose assets reach at least €5 million.

Points to watch. A holding company with a 31 December 2026 year-end will be among the first affected. Before year-end, draw up an inventory of the assets held and their use, and document the business use of those that have one. The exact scope and cumulative conditions must be checked against the text: see our analysis of the tax on family holding company assets and, for the structure itself, our article on holding companies and their tax levers.

An expense is only deductible if it is incurred in the company's interest: an outlay with no benefit to the company, or pay that is excessive in relation to the work performed, may be added back as an abnormal management act. Beyond that, an arrangement with a mainly tax-driven purpose is exposed to the abuse-of-law procedure (Articles L. 64 and L. 64 A of the Tax Procedures Code).

The practical rule is simple: a year-end action is only worthwhile if it meets a real need of the business or the owner, and if it is documented. The tax saving comes second, never the other way round.

• Interim accounts drawn up and 2026 profit estimated
• Eligibility for the reduced corporate tax rate checked, group turnover included
• Pay versus dividends simulated on a total-cost basis
• Exemption certificate for the 12.8% withholding sent before 30 November if you qualify
• PER ceiling checked on the 2026 tax notice and contribution made before 31 December
• Useful investments ordered and brought into service
• Provisions supported by dated documents
• Donation tax receipts kept
• Holding company asset inventory completed
• Decisions formalised by minutes or a sole shareholder decision

• Since 1 January 2026, dividends bear a 31.4% flat tax, making distributions more expensive than in 2025.
• The overall burden on a dividend reaches about 41.7% in the 15% corporate tax band and 48.5% in the 25% band.
• PER contributions must be made before 31 December, within 10% of 2025 earned income and €37,680.
• Buying equipment in December does little for 2026 corporate tax: depreciation runs pro rata from entry into service.
• Family holding companies with a 31 December 2026 year-end must check their exposure to the Article 235 ter C tax.