(IS): rate, declaration, payment
Verified 17 February 2026 - Entreprendre Service Public / (Prime Minister)
Business tax (IS) is levied on profits made in France by certain companies during an annual financial year. The IS is paid on fixed dates.
Some companies are subject to business tax (IS) default. Others are subject to it optional.
Default IS Taxation
Business tax (IS) is applicable default to Capital businesses, from their inception:
- Limited liability companies (SARL)
- Simplified joint stock companies (SAS)
- One-person Simplified joint stock companies (SASU)
- Public limited companies (SA)
- Limited partnership with share capitals (SCA)
- Businesses for Private Practice (SEL)
- Cooperative businesses and their unions (except procurement and purchasing businesses).
In addition, these businesses have the possibility toopt for the income tax (IR) system.
A business can opt for the income tax (IR) system where it fulfills all of the following conditions:
- Its main activity is commercial, craft, agricultural or liberal.
- It is not publicly traded.
- It employs less than 50 employees.
- She realizes a annual turnover or have a total balance less than €10 000 000.
- It must have been created since under 5 years old at the time of the option request.
- The voting rights must be held at at least 50% by one or more natural persons.
- The voting rights must be held at at least 34% by one or more of the following persons: Chairman, Chief Executive Officer, Chairman of the Supervisory Board, member of the Management Board or manager and the members of their tax household.
This option is valid for 5 accounting years and cannot be renewed. This option entails taxation of the income directly at the level of the shareholders, depending on the shareholding of each of them in the capital of the business.
When imposed on the RI, the business must realize its annual statement of results no later than 2e working day next to 1er May of the current year.
The business must provide:
- Form 2031-SD (or Form 2035-SD if it is engaged in a liberal activity)
- Tax book, tables 2033-A-SD to 2033-G-SD (for the simplified scheme)
- Tax book, tables 2050-SD to 2059-G-SD (for normal diet)
The declaration must be made by electronic means, in accordance with the procedure of its choice:
- Either by a manual online entry form (EFI mode). The company completes it itself, connecting:
On his professional space impots.gouv.fr:
Online tax account for professionals (EFI mode)
Or on his account Portailpro.gouv. :
Business account portailpro.gouv
- Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.
These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »
Please note
The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.
The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.
Taxation at option IS
The following companies, which are typically subject to income tax (IR), may opt for the business tax system (IS) :
- Individual contractors (ICs) who opted for a assimilation to EURL
- Single-member private limited liability companies (EURL)
- Partnerships (SNC)
- Limited Partnerships (SCS)
- Professional Civil businesses (PCS)
- Participating businesses (SEP).
Please note
The micro-entrepreneurs cannot opt for the business tax.
The company must submit its request for an option to the company Tax Service (SIE) the place of its principal place of business, before the end of 3e the month of the financial year in respect of which the company wishes to be subject to business tax.
The business can waive its option until 5e year following the year in respect of which the option was exercised. In the absence of a waiver within the prescribed period, the option for business tax becomes irrevocable.
A company subject to business tax (IS) is imposed on normal rate from 25%, on the profits made in France during its accounting year.
However, a reduced rate fixed at 15% may apply for the share of profits up to €42,500 . Above this threshold, the profit is then taxed at the normal rate of 25%.
This reduced rate applies to companies that complete the following 2 conditions :
- less than or equal to €10 000 000 during the accounting year, reduced if necessary to 12 months
- Share capital fully paid up and held for at least 75% by natural persons (or by a business itself detained for at least 75% by natural persons).
Compliance with this capital holding threshold is assessed without taking into account the share of equity held in-house by the business intending to benefit from the tax system.
Example :
A business holds 40% of its own actions, while the 60% the remainder are held by natural persons.
We know that self-owned securities by business (here, 40% capital) shall not be taken into account in the calculation of the holding threshold of 75% by natural persons.
Therefore, the business is well held at 100% by natural persons, so that they may legitimately benefit from the reduced IS of 15%.
Please note
The Urssaf provides a simulator to calculate the amount of business tax (IS).
Furthermore, when a company undergoes a deficit during a fiscal year, the corporation may deficit carry-forward on its next fiscal year or on a previous fiscal year.
Any business liable to the IS must subscribe annual statement of results. The documents to be transmitted and the methods of declaration will depend on the tax system (real normal or real simplified) under which the business is placed.
The regime TVA real simplified shall apply to a company from 1er January of a year N where it complies with TVA’s turnover and amount thresholds:
Threshold for duty-free turnover
- Its turnover excluding taxes in N-1 must be between:
- €85,000 and €945,000 for business, catering and housing supply activities (except furnished rentals):
- €37,500 and €286,000 for other service provision activities (including furnished rentals):
- Its turnover excluding tax realized in N shall not exceed increased thresholds following:
- For business, catering and housing supply activities (except furnished rentals): €1 040 000
- For other service delivery activities (including furnished rentals): €323,000
FYI
These thresholds are valid for 2026 (year N).
Threshold on the amount of TVA due
The amount of TVA due for the year N-1 must be less than €15,000
Consequences in the event of exceedance
- If the normal turnover threshold for the activity carried out is exceeded, or the TVA threshold due (€15,000): the company switches to the TVA normal real speed from 1er January of the year following the year of the exceedance.
- If one of the thresholds is exceeded increased of turnover, the company shifts into the TVA normal real speed in a retroactive, that is to say that this regime will apply from 1er January of the year in which the overrun occurred. The company must then subscribe to a declaration (3) summarizing all transactions carried out during the month (or quarter). This declaration must be made the month following the month (or quarter) of the overrun.
Simplified real regime
The business under the simplified real regime must transmit the following documents :
- Income statement No. 2065
- Tax book (tables 2033 A to 2033 G)
- Minutes and extracts of the deliberations of the boards of directors or the meetings of members held during the fiscal year
- Statement of profits distributed to members and amounts or securities made available to them and having the character of distributed income
- List of persons holding at least 10% share capital, specifying for each of them the number of shares and the holding rate
- List of subsidiaries and participations, specifying for each of them the ownership rate and its Siret number
The business must make its declaration by electronic means, in accordance with the procedure of its choice:
- Either by a manual online entry form (EFI mode). The company completes it itself, connecting:
On his professional space impots.gouv.fr:
Online tax account for professionals (EFI mode)
Or on his account Portailpro.gouv. :
Business account portailpro.gouv
- Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.
These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »
Please note
The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.
Normal actual speed
The business that falls under the normal real regime must transmit the following documents :
- Income statement No. 2065
- Tax book (tables 2050 to 2059)
- Minutes and extracts of the deliberations of the boards of directors or meetings of partners held during the fiscal year
- Statement of profits distributed to members and amounts or securities made available to them and having the character of distributed income
- List of persons holding at least 10% share capital, specifying for each of them the number of shares and the holding rate
- List of subsidiaries and participations, specifying for each of them the ownership rate and its SIRET number
- Detailed information on derogations from accounting requirements, changes in valuation methods and presentation of annual accounts, accrued income and accrued expenses, income and expenses shown on the balance sheet under the headings " Accrual accounts ».
FYI
The business must make its declaration by electronic means in EDI-TDFC mode. This is the electronic transmission of declarations from the accounting files, via a EDI partner (e.g. chartered accountant, specialized service provider).
The statement of result must be subscribed, in principle, within 3 months the end of the financial year. However, if the financial year is ended on 31 December or if no financial year is closed in a year, the report shall be made by on 2e working day next to 1er May.
FYI
The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.
Statutory time limit | Deadline | |
|---|---|---|
Year ended on a date other than 31 December | Within 3 months of the end of the financial year | Within 3 months of the end of the financial year |
Year ended 31/12/2025 | No later than 2e working day after 1er May | 20/05/2026 (taking into account the additional 15 days) |
No closure in 2024 | No later than 2e working day after 1er May | 20/05/2026 (taking into account the additional 15 days) |
In addition, the new businesses which do not take stock during their first calendar year of activity do not have to file an interim return. They shall be taxed on the results of the period from the start of their activity until the closing date of the first financial year and, at the latest, until 31 December of the year following that of their creation.
Warning
Failure to comply with the obligation to report results by electronic means shall be penalized by an increase of 0.2% the amount of tax corresponding to the return filed by another method (e.g. paper). This mark-up may not be less than €60.
The business tax (IS) is paid in 5 installments, i.e. 4 quarterly installments and 1 balance.
The payment of each deposit is made by means of prepayment statement no. 2571, transmitted by electronic means :
- Either by a manual online entry form (EFI mode). The company completes it itself, connecting:
On his professional space impots.gouv.fr:
Online tax account for professionals (EFI mode)
Or on his account Portailpro.gouv. :
Business account portailpro.gouv
- Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.
These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »
Please note
The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.
Each deposit payment is made fixed date : 15 March, 15 June, 15 September and 15 December. Payment deadlines depend on the business year-end date.
FYI
The business does not have to make any advance payments (IS paid in one installment) in the following cases:
- The amount of the IS is less than €3,000.
- The business is newly set up (first business year).
- The business is newly subject to the IS (first tax period).
Closing date of the financial year concerned | 1er down payment | 2e down payment | 3e down payment | 4e down payment |
|---|---|---|---|---|
From 20 February to 19 May N | 15 June N-1 | 15 September N-1 | 15 December N-1 | 15 March N |
From 20 May to 19 August N | 15 September N-1 | 15 December N-1 | 15 March N | 15 June N |
From 20 August to 19 November N | 15 December N-1 | 15 March N | 15 June N | 15 September N |
From 20 November N to 19 February N+1 | 15 March N | 15 June N | 15 September N | 15 December N |
The balance is equal to the tax due on annual profits earned, less any installments already paid. Where appropriate, available tax credits are deducted.
The business must pay the balance through the balance statement no. 2572 by electronic means, at the latest the 15th of the 4the month following the end of the financial year. However, if no fiscal year is ended during the year or if the fiscal year is ended on December 31, the business must pay the balance by on 15 May of the following year.
Please note
Where the IS shows an overpayment, this surplus is automatically repaid at the business within 30 days of the deposit of the balance statement. The excess may also be charged to the first installment of the following financial year.
Closing date of the financial year concerned | Balance |
|---|---|
31 December N-1 | 15 May N |
During year N | The 15th of 4the month after closing |
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Companies affected by the IS
Calculation of business tax (IS)
Declaration of result
Declaration of result (mandatory information)
Mandatory electronic reporting
Normal tax regime
Simplified taxation system
Payment of tax installments
IS option for EURL assimilation
Option for the personal businesses (PI) plan
French public finances general directorate (DGFiP)