How to declare your remuneration?

The officer must declare the remuneration of his corporate office received for the year 2025 at the time of his annual return of income for the year 2025 done in May/June 2026.

The amount of this remuneration must be indicated in one of the following lines depending on the status of the officer:

• SARL majority manager, SCA associate manager: line « Income of partners and managers » (1GB to 1JB) of the game ‘salaries, wages, pensions, annuities’ from cerfa form n°2042
• Other leaders: line ‘salaries and wages’ (1AJ to 1DJ) of the game ‘salaries, wages, pensions, annuities’ from cerfa form n°2042

He must make his declaration online on impôts.gouv.fr via his Public Finance area :

Taxes: access your Public Finance area

The period during which the manager must declare his taxes varies according to the department in which he resides. We provide a simulator to know the deadline for declaration by informing the department:

Check the deadline for your tax return

How is the remuneration of the corporate office taxed?

The remuneration of the executive officer's corporate office is integrated into the taxable income of the executive officer's progressive scale. If he has other taxable income on the progressive income tax scale (remuneration for an employment contract, for example), all these income are added together to be taxed on the progressive scale.

An abatement of 10% shall be applied to such pre-tax income to take into account business expenses currents of the ruler. These include, for example, travel expenses between home and work, catering expenses at the workplace.

Depending on the amount of income, the tax administration applies the following progressive scale:

Once the rates are applied to the different tranches covered by the manager's income, a single rate is determined and applied each month. Taxes are then levied at source by the tax authorities.

For more information, you can consult the sheet on the withholding at source.

Is the remuneration deductible from the outcome of the business?

Remuneration paid to the executive officer is deductible from tax profit of the business if all of the following conditions are met:

• It must correspond to a actual work.
• It must not be excessive in relation to the service rendered (for example, the remuneration must not be disproportionate to the business' turnover, profits and other remuneration).

When an amount is deducted from the income tax of a business, it is not taken into account in the calculation of the business tax.

For more information on the amounts deductible from the outcome of a business, you can consult the sheet on expenses deductible from a company's income tax.

How is interest taxed?

The remuneration of the current account of partner received by the director is automatically subject to Single flat-rate levy (PFU). On the other hand, the director may opt for this remuneration to be subject to the progressive income tax (IR) scale.

Regardless of the option chosen, a non-discharging flat-rate levy (NTFP) from 12.8% is automatically applied to the remuneration at the time of its payment. It is a down payment of income tax. In case of surplus, the difference is refunded to the manager.

This flat-rate levy is non-derogatory because it is in reality only the payment of a down payment income tax payable in the following year. The payment of the deposit is made by the payment institution responsible for paying the income from movable capital to the manager.

An officer may apply for an exemption from the non-discharging flat-rate levy (NTFP) if he or she meets one of the following conditions:

• If he's alone: his reference tax income from the penultimate year was less than €50,000 upon payment of the deposit
• If he is married or entered into a civil partnership: his reference tax income the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for exemption no later than 30 November of the previous year that of the payment of income. He must attach to his request for exemption a certificate on honor in which he indicates that he meets the income conditions.

The final taxation of the remuneration then takes place at the time of the tax return for the year in which the remuneration was received.

The tax regime applicable to remuneration is either that of the single flat-rate levy or that of the optional income tax scale:

For more information on the taxation of movable income, you can consult the corresponding page on impots.gouv.fr.

How to declare the interest of a current account of partner?

The executive's tax return varies depending on how his remuneration is taxed: either in the PFU or in the income tax scale.

Is the remuneration deductible from the outcome of the business?

Interest paid to partners who hold a current account is deductible from the business' tax income.

However, that deduction is limited for tax purposes by a maximum rate of deductible interest, also known as the ‘reference rate’. Its amount varies depending on the closing date the exercise of business.

Thus, when the interest rate (fixed by the articles of association or the agreement) is above the reference rate, the excess part of the interest paid to the partner is not deductible the taxable profit of the business.

Thus the interest, received by the associate director, deductible from the income of the business he manages is not not taxed on businesses. They are only taxed at the executive level on income tax.

The excess portion is taxed at both the business tax business level and the income tax officer level.

For more information, you can consult our fact sheet on expenses deductible from income tax.

How are dividends taxed?

Dividends received by the director are automatically subject to Single flat-rate levy (PFU). On the other hand, the director may opt for this remuneration to be subject to the progressive income tax (IR) scale.

Regardless of the option chosen, a non-discharging flat-rate levy (NTFP) from 12.8% is automatically applied to the remuneration at the time of its payment. It is a down payment of income tax. In case of surplus, the difference is refunded to the manager.

This flat-rate levy is non-derogatory because it is in reality only the payment of a down payment income tax payable in the following year. The payment of this deposit is made by the payment institution responsible for paying the income from movable capital to the manager.

An officer may apply for an exemption from the non-discharging lump sum levy (NTFP) if he or she is in one of the following situations:

• If he's alone: his reference tax income from the penultimate year was less than €50,000 upon payment of the deposit
• If he is married or entered into a civil partnership: his reference tax income the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for exemption no later than 30 November of the previous year that of the payment of income. He must attach to his request for exemption a certificate on honor in which he indicates that he meets the income conditions.

The final taxation of the remuneration then takes place at the time of the tax return for the year in which the remuneration was received.

The tax regime applicable to dividends is either that of the single flat-rate levy or that of the optional income tax scale.

For more information on the taxation of movable income, you can consult the corresponding page on impots.gouv.fr.

How to declare dividends?

The director's income tax return depends on how the remuneration for his or her directorship is taxed: either in the PFU or in the Income tax scales.

Are dividends deductible from the outcome of the business?

Dividends paid to executives are not deductible the tax outcome of the business. Before being distributed, these dividends constitute the benefits business. Thus, they are subject to business tax (IS) at the business level. Once distributed, these dividends are taxed at income tax on each partner or shareholder.

To learn more about business tax, you can visit the dedicated sheet on our website.

How to declare a salary?

The manager must declare the salary he receives under his employment contract for the year 2025 at the time of his annual return of income for the year 2025, done in May/June 2026.

The amount of this remuneration must be indicated on the line ‘Salaries and wages’ (1AJ to 1DJ) of the game ‘salaries, wages, pensions, annuities’ from cerfa form n°2042.

He must make his declaration online on impôt.gouv.fr via his Public Finance area :

Taxes: access your Public Finance area

The period during which the manager must declare his taxes varies according to the department in which he lives. We provide a simulator to know directly this date by informing his department of residence:

Check the deadline for your tax return

How is the salary taxed?

The executive's salary is integrated into the taxable income of the executive's progressive scale.

If he has other taxable income at the progressive income tax scale (remuneration for the corporate office for example), all his income is added to be taxed together at the progressive scale.

An abatement of 10% shall be applied to such pre-tax income to take into account business expenses currents of the ruler. These include, for example, travel expenses between home and work, catering expenses at the workplace.

Depending on the amount of income, the tax administration applies the following progressive scale:

Once the different rates are applied to the different tranches covered by the manager's income, a single rate is determined and applied each month. Taxes are then levied at source by the tax authorities.

For more information, you can consult our fact sheet on the withholding tax.

Is the salary deductible from the outcome of the business?

Salaries paid to the manager are deductible from tax profit of the business if all of the following conditions are filled in:

• They must correspond to one actual work.
• They must not be excessive in relation to the service rendered (for example, the salary must not be disproportionate to the business' turnover, profits and other remuneration).

When an amount is deducted from the income tax of a business, it is not taken into account in the calculation of the business tax (IS).

For more information, you can consult our fact sheet on expenses deductible from tax profit.

How is remuneration taxed?

The remuneration of the director or member of the Supervisory Board received by the officer is automatically subject to the single lump sum deduction (PFU). On the other hand, the manager may opt for this remuneration to be subject to the progressive income tax scale.

Regardless of the option chosen, a non-discharging flat-rate levy (NTFP) from 12.8% is automatically applied to the remuneration at the time of its payment. It is a down payment of income tax. In case of surplus, the difference is refunded to the manager.

This flat-rate levy is non-derogatory because it is in reality only the payment of a down payment income tax payable in the following year. The payment of the deposit is made by the payment institution responsible for paying the income from movable capital to the manager.

An officer may apply for an exemption from the non-discharging flat-rate levy (NTFP) if he or she meets one of the following conditions:

• If he's alone: his reference tax income from the penultimate year was less than €50,000 upon payment of the deposit
• If he is married or entered into a civil partnership: his reference tax income the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for exemption no later than 30 November of the previous year that of the payment of income. He must attach to his request for exemption a certificate on honor in which he indicates that he meets the income conditions.

The final taxation of the remuneration then takes place at the time of the tax return for the year in which the remuneration was received.

The tax regime applicable to remuneration is either that of the single flat-rate levy or that of the optional income tax scale.

For more information on the taxation of movable income, you can consult the corresponding page on impots.gouv.fr.

How to declare the remuneration of the corporate office of the director or member of the Supervisory Board?

The director's income tax return varies depending on how the director's remuneration is taxed: either in the PFU or in the Income tax scales.

Is the remuneration deductible from the outcome of the business?

Remuneration for the term of office of director or member of the Supervisory Board paid to the deductible from tax profit of the business if all of the following conditions are met:

• It must correspond to a actual work.
• It must not be excessive in relation to the service rendered (for example, the remuneration must not be disproportionate to the business' turnover, profits and other remuneration).

When a business is deducted from its income tax, it is not taken into account in the calculation of business tax.

However, the amount of remuneration that can be deducted depends on the number of employees in the business: less than 5 or 5 employees or more.

For more information, you can consult our fact sheet on expenses deductible from tax profit.