Tax consequences of the dissolution of a business (voluntary or involuntary)
Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)
The dissolution of a business, voluntarily or following a judicial liquidation, has consequences on the taxation of its profits, on its TVA declaration and on its property taxes.
A business can be dissolved in different ways:
- Voluntary dissolution by associates
- Dissolution provided for by a statutory provision : the end of the business (the end date stipulated in the articles of association), the realization of the corporate purpose or the death of the sole shareholder resulting in the dissolution of the business (EURL: titleContent or SASU: titleContent).
- Dissolution following a bankruptcy
The type of dissolution does not affect the tax consequences. Only the deadlines can be different.
The rules vary depending on the business' tax system: business subject to business tax (IS) or business subject to income tax (IR).
Business subject to IS
Dissolving the business leads to immediate taxation of its profits.
What are the taxable profits immediately?
Taxable profits are as follows:
- Profits realized since the end of the last fiscal year
- Profits suspended from taxation. These are mainly the provisions which have previously been made up for future losses or charges which have never materialized at the time of dissolution
- Capital gains of fixed assets (offices, plant...) that were made when the business was dissolved.
When should business declare its profits?
The business must report its profits to the tax authorities within 60 days of the date of approval of the final liquidation accounts. This time limit shall apply where a business ceases to be active following a dissolution. To know the different cases of dissolution of businesses, you can consult the sheet on the causes of dissolution.
How do I report profits?
The declaration of the outcome is different depending on the business’s tax regime: actual standard or simplified regime.
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Normal Real Speed (RN)
The actual standard income tax regime shall apply to businesses whose annual turnover before tax exceeds the following amounts:
- For trade and housing supply activities: €945,000
- For services: €286,000
The business subject to the simplified tax regime and who makes industrial and commercial profits (BIC) must make its income statement: this is the declaration No. 2065-SD and the tax package including tables No. 2050-A-SD to 2059-G-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a template of Declaration No 2065 SD. In the case of non-commercial profits (BNC), it also makes available as an indication a model of Declaration No 2035 SD.
Simplified Real Regime (RSI)
The Simplified Real Taxation System (SIR) is applicable to businesses whose annual turnover excluding tax shall be between the following amounts:
- For trade and housing supply activities: between €203,100 and €945,000
- For service provision and furnished rental activities: between €83,600 and €286,000
The business subject to the simplified tax regime and who makes industrial and commercial profits (BIC) must make its income statement: this is the declaration No. 2065-SD and the tax package including tables No. 2033-A-SD to 2033-G-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a template of Declaration No 2065 SD. In the case of non-commercial profits (BNC), it also makes available as an indication a model of Declaration No 2035 SD.
When the dissolved business was submitted to the TVA, it must make a TVA declaration to the company Tax Office (SIE) to which it belongs. For more information, you can consult our fact sheet on TVA plans.
The reporting period varies according to the TVA regime to which the business was subject: actual simplified or standard regime.
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.
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TVA Simplified Real Regime
Where a business is subject to the TVA simplified real regime, its TVA declaration shall be made in 60 days after dissolution (date on which the liquidation accounts are approved)by completing Declaration No. 3517-S-SD ({circumflex over (X)} 12).
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax authorities shall make available for information only a model of Declaration No. 3517-S-SD(12).
Normal actual speed
The business shall be subject to TVA’s normal real regime where its turnover is greater than €945,000.
The TVA statement must be made in 30 days after dissolution (date on which the liquidation accounts were approved) by completing Declaration No. 3310-3-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax authorities shall make available for information only a model of Declaration No 3310-₩3-SD.
When a business is dissolved, it is not exempt from paying and declaring its property taxes: company property tax (CFE) and the company value added tax (CVAE).
Pay the CFE
The amount of the CFE depends on the date of the dissolution of the business (date of approval of the liquidation accounts):
- If dissolution has taken place on 31 december, the business must pay the CFE for the whole year
- If dissolution has taken place before 31 December, the business may ask the tax authorities to calculate the amount of its CFE in proportion to the working time. The application must be made before December 31 of the following year. It must be done from the secure messaging of the professional area of the site impots.gouv.fr or by mail addressed to the SIE:
Online tax account for professionals (EFI mode)
To know the steps to achieve a CFE reduction, you can consult the page of the tax site.
Declare the CVAE
Any business with a turnover of more than €152,500 must make a declaration of added value and number of employees.
Within 60 days Following the completion of the activity, the business must make a declaration No. 1330-CVAE-SD.
FYI
The tax authorities shall make available for information only a model of declaration no. 1330-CVAE-SD.
When the business achieves more than €500,000 of turnover annual Excluding tax, she must file a declaration of liquidation and regularization of CVAE (form n° 1329-DEF).
These declarations (No 1330-CVAE-SD and 1330-CVAE-SD) must be carried out in a dematerialized (sending paper forms is no longer possible):
- Either by a manual online entry forms (EFI mode). The company completes them herself, connecting to her professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- 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.
- Either through the Portailpro account
Business account portailpro.gouv
FYI
The tax authorities shall make available for information only a model of declaration of liquidation and regularization n° 1329- DEF.
Business subject to IR
Dissolving the business leads to immediate taxation profits.
What are the profits and capital gains taxable immediately?
Taxable profits are as follows:
- Profits realized since the end of the last fiscal year
- Profits suspended from taxation. These are mainly the provisions which have previously been made up for future losses or charges which have never materialized at the time of dissolution
- Capital gains of fixed assets (offices, plant...) that were made when the business was dissolved.
When should business declare its profits?
The dissolution of a business is the result of amicable liquidation or judicial.
A liquidator shall be appointed to carry out the liquidation formalities and draw up liquidation accounts.
The date of dissolution of the business is generally the date on which the liquidation accounts are approved by the partners. The business has 60 days from this date to send the tax authorities its latest income tax return.
How to declare your profits?
The tax return is different depending on the profits made by the business' partners: industrial and commercial profits (BIC) or non-commercial profits (BNC) or agricultural profits (BA).
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(BIC)
The rules are different depending on the partner's tax system.
Micro-BIC (micro-entrepreneur)
Profits received by the partner are subject to the micro-BIC scheme in year N if they have not exceeded €203,100 in the previous 2 years (N-1 and N-2).
The tax return must be filed with the declaration no. 2042. You must also attach the supplementary declaration 2042-C-PRO on which must be indicated the turnover achieved until the cessation of activity in the part " professional industrial and commercial income ».
The declaration must be made by the partner on his space Particular of the site impots.gouv.fr:
Simplified real regime
The simplified real tax regime (RSI) applies to the profits received by the member in a year N when they were included, in N-1, between €203,100 and €945,000.
The individual contractor must report its results with the form no. 2031 and the tax package comprising the annexed tables n° 2033-A to 2033-G.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a template of declaration no 2031 SD.
Normal actual speed
The normal real estate regime applies to the partner whose annual turnover excluding tax is greater than €945,000.
The partner must perform a last statement of results.
If it makes industrial and commercial profits (BIC): this is declaration n°2031-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a template of declaration no 2031 SD. In the case of non-commercial profits (BNC), it also provides a template for Declaration No 2035 SD.
(BNC)
The rules are different depending on the partner's tax regime.
Micro-BNC diet
The profits received by the partner are subject to the micro-BNC regime if they are less than €83,600.
The tax return must be filed with the declaration no. 2042. You must also attach the supplementary declaration 2042-C-PRO on which must be indicated the turnover achieved until the cessation of activity in the part " non-commercial revenues ».
The declaration must be made by the partner on his particular space of the site impots.gouv.fr:
Controlled reporting regime
The non-commercial profits received by the partner are subject to the controlled declaration regime if they are greater than or equal to €83,600.
The non-commercial profit (BNC) partner must make a final income statement. This is Declaration No. 2035-SD.
The declaration must be made in such a way dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax administration makes available in the event of non-commercial profits (BNC), it also makes available a model of Declaration No 2035 SD.
When the dissolved business was submitted to the TVA, it must file a TVA declaration with the company Tax Office (SIE) to which it belongs. To learn more about the different TVA plans, you can visit our dedicated sheet.
The reporting period varies according to the TVA regime to which the business was subject: actual simplified or standard regime.
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Simplified real regime
The business shall be subject to TVA’s normal real regime where its turnover is:
- For a commercial, craft or liberal activity: less than €945,000
- For an agricultural activity: greater than €46,000
Commercial, craft or liberal activity
In the 60 days after cessation of activity, the business shall make a declaration No. 3517-S-SD ({circumflex over (X)12)}.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax authorities shall make available for information only a model of Declaration No. 3517-S-SD.
Normal actual speed
The business shall be subject to TVA’s normal real regime where its turnover is greater than €945,000.
A business engaged in an agricultural activity is not covered by TVA’s normal real scheme.
Within 30 days of cessation of activity, the business shall make a declaration No 3310-₩3-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax authorities shall make available for information only a model of Declaration No 3310-₩3-SD.
To learn more about the TVA's tax systems, you can consult the fact sheet declare and pay the TVA.
When a business is dissolved, it is not exempt from paying and declaring its property taxes: company property tax (CFE) and the company value added tax (CVAE).
Pay the CFE
The amount of the CFE depends on the date of the dissolution of the business (date of approval of the liquidation accounts):
- If dissolution has taken place on 31 december, the business must pay the CFE for the whole year
- If dissolution has taken place before 31 December, the business may ask the tax authorities to calculate the amount of its CFE in proportion to the working time. The application must be made before December 31 of the following year. It must be done from the secure messaging of the professional area of the site impots.gouv.fr or by mail sent to the service of taxes of the companies (SIE):
Online tax account for professionals (EFI mode)
To know the steps to achieve a CFE reduction, you can consult the page of the tax site.
Declare the CVAE
Any business with a turnover of more than €152,500 must make a declaration of added value and number of employees.
Within 60 days Following the completion of the activity, the business must make a declaration No. 1330-CVAE-SD.
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible)
FYI
The tax authorities shall make available for information only a model of declaration no. 1330-CVAE-SD.
When the business achieves more than €500,000 of turnover annual Excluding tax, she must file a declaration of liquidation and regularization of CVAE (form n° 1329-DEF).
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- 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.
FYI
The tax authorities shall make available for information only a model of declaration of liquidation and regularization n° 1329- DEF.
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