Tax consequences of the dissolution of a business (voluntary or involuntary)
Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)
The dissolution of a business, voluntarily or following a judicial liquidation, has consequences on the taxation of its profits, on its VAT return and on its property taxes.
A business can be dissolved in different ways:
- Voluntary dissolution by the partners
- 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 (SI) or business subject to income tax (IR).
Business subject to SI
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 not finally been realized at the time of dissolution
- Capital gains of fixed assets (offices, plant...) which were made when the business was dissolved.
When does business have to declare its profits?
The business must report its profits to the tax authorities within 60 days of the date of approval of the final settlement accounts. This period 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: normal or simplified real regime.
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Normal real speed (RN)
The ordinary effective tax regime is applicable to businesses whose annual turnover before tax is greater than the following amounts:
- For trade and housing supply activities: €840,000
- For the provision of services: €254,000
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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a model of Declaration No 2065 SD. In the case of non-commercial profits (NCBs), it also makes available a model of Declaration No 2035 SD.
Simplified Real Regime (RSI)
Warning
The application thresholds for the simplified real scheme shall be reassessed from 1er January 2026. However, their amount will be set by the Finance Law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
The Simplified Taxation Real (SIR) regime is applicable to businesses whose annual turnover excluding tax shall be between the following amounts:
- For trade and housing supply activities: between €188,700 and €840,000
- For service provision and furnished rental activities: between €77,700 and €254,000
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 n°2065-SD and the tax package including tables n°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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a model of Declaration No 2065 SD. In the case of non-commercial profits (NCBs), it also makes available a model of Declaration No 2035 SD.
When the dissolved business was subject to VAT, it must file a VAT return with the company Tax Office (SIE) on which it depends. To learn more about the different VAT regimes, you can consult our dedicated sheet.
The reporting period varies according to the VAT regime to which the business was subject: simplified or standard real regime.
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Simplified real regime
The business is subject to the simplified real VAT regime when its turnover is less than €840,000.
The VAT declaration must be made in within 60 days of dissolution (date on which settlement accounts are approved)by completing Declaration 3517-S-SD (CA12).
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available a model of Declaration No. 3517-S-SD(CA12).
Normal real speed
The business is subject to the ordinary real VAT regime when its turnover is greater than €840,000.
The VAT declaration must be made in 30 days after dissolution (date on which the settlement accounts were approved) by completing Declaration No. 3310-CA3-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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available a model of Declaration No 3310-CA3-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 Assessment (CVAE).
Pay the CFE
The amount of the CFE depends on the date on which the business is dissolved (date on which the settlement accounts are approved):
- 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 be taken to obtain a reduction in the CFE, you can consult the page of the tax site.
Declare the CVAE
Any business with a turnover greater than €152,500 must make a declaration of added value and number of employees.
Within 60 days After the activity is completed, 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):
- Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available 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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available 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 not finally been realized at the time of dissolution
- Capital gains of fixed assets (offices, plant...) which were made when the business was dissolved.
When does business have to 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 to 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 transmit to the tax administration its latest income statement.
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 (NCB) or agricultural profits (BA).
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
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Industrial and Commercial Benefits (BIC)
The rules are different depending on the partner's tax system.
Micro-BIC (micro-entrepreneur)
The profits received by the partner are subject to the micro-BIC regime if they are less than €188,700.
The tax return must be made with the declaration no. 2042. You must also attach the supplementary declaration 2042-C-PRO on which must be indicated the turnover achieved up to the cessation of activity in the section ‘ professional industrial and commercial income ».
The declaration must be made by the partner on his particular space of the site impots.gouv.fr:
Simplified real regime
The simplified tax real regime (RSI) applies to profits received by the member when they are between €188,700 and €840,000.
The individual contractor must report their results with the form no. 2031 and the tax package comprising the Annex Tables 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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a model of Declaration No 2031 SD.
Normal real speed
The normal real estate regime applies to the partner whose annual turnover excluding tax is greater than €840,000.
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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a model of Declaration No 2031 SD. In the case of non-commercial profits (NCBs), it also makes available a Declaration No 2035 SD.
Non-Commercial Earnings (NCB)
The rules are different depending on the partner's tax regime.
Micro-BNC regime
The benefits received by the partner of the micro-BIC diet if they are less than €77,700.
The tax return must be made with the declaration no. 2042. You must also attach the supplementary declaration 2042-C-PRO on which must be indicated the turnover achieved up to the cessation of activity in the section ‘ non-commercial revenues ».
The declaration must be made by the partner on his particular space of the site impots.gouv.fr:
Regime of controlled reporting
Profits received by the partner are subject to the controlled return regime if they are greater than or equal to €77,700
.
The partner who makes non-commercial profits (NCB) must make a final income statement. This is Declaration No. 2035-SD.
The declaration may be made in one of the following ways:
- Either by the partner himself on his professional account on the site impots.gouv.fr (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
FYI
The tax administration makes available in the case of non-commercial profits (NCB), it also makes available a model of Declaration No 2035 SD.
When the dissolved business was subject to VAT, it must file a VAT return with the company Tax Office (SIE) on which it depends. To learn more about the different VAT regimes, you can consult our dedicated sheet.
The reporting period varies according to the VAT regime to which the business was subject: simplified or standard real regime.
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Simplified real regime
The business shall be subject to the ordinary real VAT arrangements where its turnover is:
- For a commercial, craft or liberal activity: less than €840,000
- For an agricultural activity: greater than €46,000
Commercial, craft or liberal activity
In the 60 days after cessation of activity, the business must make a declaration No. 3517-S-SD (CA12).
This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):
- Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available a model of Declaration No. 3517-S-SD.
Normal real speed
The business is subject to the ordinary real VAT regime when its turnover is greater than €840,000.
The business who carries out an agricultural activity is not covered by the ordinary real VAT system.
Within 30 days after cessation of activity, the business must make a declaration No 3310-CA3-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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available a model of Declaration No 3310-CA3-SD.
For more information on the VAT tax systems, you can consult the fact sheet declare and pay VAT.
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 Assessment (CVAE).
Pay the CFE
The amount of the CFE depends on the date on which the business is dissolved (date on which the settlement accounts are approved):
- 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 service of the taxes of the companies (SIE):
Online tax account for professionals (EFI mode)
To know the steps to be taken to obtain a reduction in the CFE, you can consult the page of the tax site.
Declare the CVAE
Any business with a turnover greater than €152,500 must make a declaration of added value and number of employees.
Within 60 days After the activity is completed, 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):
- Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available 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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :
Online tax account for professionals (EFI mode)
- Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.
- Either through the Portailpro account
Portailpro.gouv: common portal to simplify your declarations and payments
FYI
The tax authorities shall make available a model of declaration of liquidation and regularization n° 1329- DEF.
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