The corporate rate for French SMEs: 15% or 25%?

Who pays the reduced corporate rate

Three cumulative conditions open the 15% rate. First, turnover excluding tax stays below €10 million. Second, the capital is fully paid up. Finally, individuals hold at least 75% of the shares, directly or through qualifying companies.

Founders overlook the paid-up condition most often. Yet capital subscribed but not paid up forfeits the reduced rate. The extra corporate charge then far exceeds the cash comfort gained.

Carried-forward losses under corporate tax in France

Losses carry forward without time limit. Above one million euros of profit, however, their use caps at 50% of the excess portion.

In addition, carry-back sets a loss against the previous year's profit. It then creates a claim on the Treasury. The calculator models carry-forward only.

No corporate charge on a loss

A loss-making company owes nothing for the year. The loss simply becomes deductible from future profits. Thus, early loss years already prepare later corporate savings.

Corporate level versus personal level

The calculator measures what the company owes. Still, the director also pays income tax on what they draw. To weigh salary against dividends, also try the director remuneration calculator.

How to read the corporate result

The calculator starts from pre-tax profit. Next, it deducts carried-forward losses. It then applies 15% to the first slice and 25% to the rest when the company qualifies. Finally, it shows the net result after the corporate charge.

Change one input and the figures update at once. For instance, you can test a larger loss or a lost eligibility before year-end. That way, the corporate budget holds no surprise.