Direct taxes - Corporate Income Tax

    Generic part

    Corporate income tax - Corporation tax
    Impôt sur les sociétés
    FR - France
    EUR
    Date
    Year
    1948/01/01
    2019/01/01
    2019/02/11 16:30:25

    Contact information

    Administration

    Ministère de l'Action et des comptes publics - 139 rue de Bercy - 75572 Paris Cedex 12

    Service

    Direction de la Législation Fiscale - Bâtiment Vauban - Télédoc 546 - 139 rue de Bercy - 75572 Paris Cedex 12

    Website

    http://bofip.impots.gouv.fr/bofip/7755-PGP

    E-mail

    dlf@dgfip.finances.gouv.fr

    Telephone

    +3310153189016

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    FR - France
    No Yes

    Taxpayers

    Which entities are liable for CIT?

    • Legal persons
    • Organizational units having no legal personality
    • Tax capital groups
    • Associations
    • Foundations
    • Companies having their seat or management office in other countries, provided that in their country they are treated as legal persons and are subject to tax on income
    • Public corporations
    • Others

    Which entities are exempt from CIT?

    Entities with no lucrative business

    Domestic-source income of non-resident entities is

    Taxed
    Not Taxed

    Tax object and basis of assessment

    As general rule, taxable income under corporate income tax includes also

    • Interest
    • Royalties
    • Dividends
    • Capital gains
    • Income from immovable property
    • Income from movable property not listed above
    • Income from agriculture

    Income considered

    Domestic income
    Worldwide income (subject to double-tax relief)

    Deductions, allowances, credits, exemptions

    Valuation of inventory

    • First-in first-out (FIFO)
    • Last-in first-out (LIFO)
    • Average cost
    • Specific identification

    Depreciation rules

    Buildings

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    25 Years
    4 %

    Other fixed immovable assets (e.g. machinery)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    10 Years
    10 %

    Movable (tangible) assets (e.g. cars, furniture, work equipment)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    5 Years
    20 %

    Intangible assets (e.g. patents)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    5 Years
    20 %

    Land (if any)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Are there limits to interest deductions (other than thin capital rules)?

    No Yes
    Maximum between M€3 and 30% of EBITDA (transposition of ATA Directive)
    (Before 2019 : 75% of net interest expenses, if NIE>M€3)

    Is there an Allowance for Corporate Equity?

    No Yes

    Exemptions from taxable income

    No Yes
    • Income from participations (dividends)
    • Patents income (e.g. patent boxes)
    • Other, please describe
    capital gains on long term equity securities

    Expenses that are generally not deductible:

    sumptuary expenses, fines and penalties

    Losses

    Loss carry-forward exists?

    No Yes
    • Indefinite

    Loss carry-backward exists?

    No Yes
    • Indefinite
    1 Years
    1,000,000

    Tax credits available?

    No Yes
    • For research and development investments
    • For training
    • Other, please describe:
    For innovation, artistic productions, investments in targeted areas, etc.

    Rate(s) Structure

    31 %
    31 %

    Special tax rate for SMEs

    No Yes
    15 %
    15 %

    Measures against profit shifting

    Do Thin Capitalization (TC) rules exist?

    No Yes
    1979/07/01
    • Explicit TC law
    • Part of CIT law
    • Arm’s length
    • Ratio
    150 : 100
    average debts to related companies
    equity
    Internal
    Internal and external

    TC depends on shareholding?

    No Yes
    50 %
    Direct
    Indirect

    Automatic remedy

    No Yes
    • Non-deductibility of interest
    • Reclassification as dividend
    All companies
    Foreign companies
    Non-EU companies

    Transfer pricing rules exists?

    No Yes
    No Yes
    • Fee
    • Tax base increase

    Special features

    Is group taxation available?

    No Yes

    Is there a specific anti-avoidance provision in the legislation?

    No Yes

    International aspects

     
    Treaty countries
    Non-treaty countries
    Repatriated profits are taxed according to the following system
    • Exemption system
    • Tax credit
    • Deduction
    • Exemption system
    • Tax credit
    • Deduction
    Interest received is taxed
    No Yes
    No Yes
    Tax rate on interest received
    31 %
    31 %
    Outgoing dividends withholding tax
    0 %
    30 %
    Outgoing royalty payments withholding tax
    0 %
    31 %
    Outgoing interest payments withholding tax
    0 %
    0 %
    Foreign losses (of either subsidiaries or permanent establishments) can be set-off
    No Yes
    No Yes
    If yes :
    Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
    Loss carry-forward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Loss carry-backward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Controlled foreign company (CFC-) rules exist?
    No Yes
    No Yes
    If yes :
    Time limit:
    • Indefinite
    • Indefinite
    Size limit
    Threshold for capital or voting power held directly or indirectly by resident in non-resident company:
    50 %
    50 %
    CFC-rules apply if foreign tax rate is lower than:
    15.5 %
    15.5 %
    CFC-rules apply for passive income only?
    No Yes
    No Yes

    Tax due date

    When has the tax return to be filed

    • 3 months after closing of the tax period
    • 6 months after closing of the tax period
    • Later than 6 months after closing of the tax period
    • Date set by the Authority
    • Other
    • Extensions of the deadline are possible

    Advance tax payments due?

    No Yes
    • Monthly
    • Quarterly
    • Bi-annual
    • Annual
    • Other

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d51b-c04
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2017
    58,099
    2.5352 %
    5.4503 %
    2016
    49,708
    2.2305 %
    4.8745 %
    2015
    49,674
    2.2595 %
    4.9468 %
    2014
    49,529
    2.3039 %
    5.0406 %
    2013
    49,536
    2.3397 %
    5.1421 %
    2012
    47,559
    2.2769 %
    5.1132 %
    2011
    47,072
    2.2869 %
    5.2652 %
    2010
    39,889
    1.9992 %
    4.7269 %
    2009
    27,920
    1.4418 %
    3.4194 %
    2008
    51,086
    2.5641 %
    6.0128 %
    2007
    52,434
    2.7009 %
    6.3203 %
    2006
    48,990
    2.6508 %
    6.1225 %
    2005
    43,032
    2.4368 %
    5.6899 %
    2004
    40,459
    2.3743 %
    5.6114 %
    2003
    35,527
    2.1787 %
    5.1692 %
    2002
    38,940
    2.4524 %
    5.7975 %
    2001
    44,364
    2.8842 %
    6.701 %
    2000
    39,821
    2.6932 %
    6.2318 %

    Footnotes