Social contribution on business tax
Verified 24 October 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The social contribution on the business tax is due from companies under the SI which have a certain amount of turnover. This additional contribution shall be calculated on the amount of the SI and recovered under the same conditions.
Social contribution on SI must not be confused with the social contribution of solidarity of businesses (C3S).
A company under thebusiness tax (IS) is, in principle, liable for the social contribution on the SI.
However, the company is exempt of the payment of the social contribution when it completes the following 2 conditions :
- Revenue less than or equal to €7,630,000 during the accounting year, reduced as appropriate to 12 months. For the parent business of a tax group, this limit shall be assessed by reference to the sum of the turnover of each of the Member businesses of that group.
- Fully paid-up share capital held for at least 75% by natural persons (or by a business itself detained for at least 75% by natural persons).
Please note
Individual entrepreneurs (IEs) who cannot legally have share capital are required to meet the sole condition relating to the amount of turnover.
The social contribution on SI is equal to 3.3% of the business tax payable by the company, after application of a abatement annual of €763,000 on the amount of that tax.
Reminder
A company subject to business tax (SI) is taxed on the normal rate of 25%, on the profits made in France during its accounting year.
One reduced rate 15% shall apply to small and medium-sized companies which have a duty-free turnover not exceeding €10 000 000 and whose capital is fully paid up and held for at least 75% by natural persons. This rate applies to the share of profits up to €42,500. Beyond that, the tax rate is 25%.
Example :
A company has a turnover of €15 000 000 duty-free, of which €3.5 million of profits.
As the company does not meet the conditions to benefit from the reduced SI, it is taxed at 25% on all its profits.
Or 25% x 3,500,000 = €875,000 to be paid as business tax (IS).
The amount of the social contribution is therefore calculated as follows: 3,3 % x (875 000 - 763 000) = €3,696 to be paid as social contribution on the SI.
The social contribution on profits shall be paid under the same conditions as thebusiness tax (IS) : in 5 times of which 4 quarterly installments and 1 balance.
Each deposit is equal to 0.825% the amount of the reference tax.
The payment of each deposit is made by means of the deposit statement no. 2571, transmitted electronically through the EDI partner or online on thebusiness area from impots.gouv.fr.
Each prepayment is made fixed date : 15 March, 15 June, 15 September and 15 December. Deadlines for payment depend on the closing date of the financial year of the business.
Closing date of the financial year concerned | 1er down payment | 2e down payment | 3e down payment | 4e down payment |
|---|---|---|---|---|
From 20 February to 19 May N | 15 June N-1 | 15 September N-1 | 15 December N-1 | March 15 N |
May 20 to August 19 N | 15 September N-1 | 15 December N-1 | March 15 N | June 15 N |
20 August to 19 November N | 15 December N-1 | March 15 N | June 15 N | September 15 N |
November 20 N to February 19 N+1 | March 15 N | June 15 N | September 15 N | December 15 N |
FYI
The company does not have to make a deposit (payment of the contribution at one time) in the following cases:
- The amount of the contribution is less than €3,000.
- The amount of SI realized in the previous year is less thanabatement annual of €763,000.
- The company is newly created (first year of activity).
The balance is equal to the contribution due on the annual profits made less the advance payments already made. Where applicable, available tax credits are deducted.
The business shall pay the balance by means of the balance sheet no. 2572 by electronic means at the latest the 15th of the 4the month following the end of the financial year. However, if no financial year is closed during the year or if the financial year is closed on 31 December, the business must pay the balance at the latest 15 May of the following year.
Please note
Where the payment of the contribution reveals an overpayment, this surplus is automatically repaid business within 30 days of the deposit of the statement of balance. The excess may also be charged to the first advance payment of the following financial year.
Closing date of the financial year concerned | Balance |
|---|---|
31 December N-1 | 15 May N |
In year N | The 15th of the 4the month after closing |
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Recovery of social contribution from SI
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