Business tax (SI): rate, declaration, payment
Verified 01 January 2025 - Directorate for Legal and Administrative Information (Prime Minister)
The business tax (IS) is levied on profits made in France by certain companies, during an annual financial year. Payment of the SI is made on fixed dates.
Some companies are subject to business tax (SI) default. Others are subject to it on option.
Default IS Taxation
The business tax (SI) is applicable default to capital businesses, from their inception:
- Limited Liability businesses (LLC)
- Simplified joint stock companies (SAS)
- Single person simplified joint stock companies (SASU)
- Public limited companies (SA)
- Limited partnerships (CBS)
- Businesses of Liberal Practice (SEL)
- Cooperative businesses and their unions (except procurement and purchasing businesses).
In addition, these businesses have the possibility toopting for the income tax (IR) system.
Option tax on SI
The following companies, which are typically subject to income tax (IR), may opting for the business tax (SI) system :
- Individual entrepreneurs (IEs) who have opted for a assimilation to EURL
- Single-member companies with limited liability (EURL)
- General partnerships (SNC)
- Limited partnerships (CBS)
- Professional Civil businesses (PCS)
- Participating businesses (SEP).
Please note
The micro-entrepreneurs cannot opt in for business tax.
The company must submit its request for an option to the company Tax Service (SIE) of the place of his principal place of business, before the end of 3e month of the financial year in which the company wishes to be subject to business tax.
Business can to give up his option up to 5e fiscal year following the year in respect of which the option was exercised. In the absence of a waiver within the prescribed period, the option for business tax becomes irrevocable.
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.
However, a reduced rate fixed at 15% may apply for the share of profits up to €42,500 . Above this threshold, the profit is then taxed at the normal rate of 25%.
This reduced rate applies to companies who the following 2 conditions :
- Revenue less than or equal to €10 000 000 during the accounting year, reduced as appropriate to 12 months
- 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
The Urssaf provides a simulator to calculate the amount of business tax (IS).
Also, when a company experiences a deficit during a financial year, the latter may carry out a deficit carry-over next fiscal year or a previous fiscal year.
Any business subject to SI must subscribe to a annual income statement. The documents to be transmitted and the reporting arrangements shall depend on the tax system (regular real or simplified real) under which the business is placed.
Simplified real regime
The business covered by the actual simplified scheme must transmit the subsequent documents :
- Income Statement No. 2065
- Tax book (Tables 2033 A to 2033 G)
- Minutes and extracts of the deliberations of the boards of directors or meetings of members during the financial year
- Statement of the profits distributed to members and of the sums or values made available to them and having the character of distributed income
- List of persons holding at least 10% the share capital, specifying for each of them the number of shares and the holding rate
- List of subsidiaries and holdings, specifying for each of them the holding rate and its Siret number
The business must make its declaration electronically, in accordance with the procedure of his choice:
- Either in EDI-TDFC mode, this is the transmission of declarations from accounting files, via a EDI partner (e.g. accountant, specialized contractor).
- Either in EFI mode, i.e. from its Professional area accessible from impots.gouv.fr.
Normal Actual Speed
The business under the normal real regime shall transmit the subsequent documents :
- Income Statement No. 2065
- Tax book (Tables 2050 to 2059)
- Minutes and extracts of the proceedings of the boards of directors or meetings of members held during the financial year
- Statement of the profits distributed to members and of the sums or values made available to them and having the character of distributed income
- List of persons holding at least 10% the share capital, specifying for each of them the number of shares and the holding rate
- List of subsidiaries and holdings, specifying for each of them the holding rate and its SIRET number
- Detailed information on deviations from accounting requirements, changes in valuation methods and presentation of annual accounts, accrued income and accrued expenses, income and expenses shown in the balance sheet under items ‘ Accruals and deferred income ”.
The business must make its declaration electronically in EDI-TDFC mode. This is the electronic transmission of declarations from accounting files, via a EDI partner (e.g. accountant, specialized contractor).
The declaration of results must be signed, in principle, within 3 months the end of the financial year. However, if the financial year is closed on 31 December or if no financial year is closed in a year, the declaration shall be made at the latest on 2e working day following 1er May.
FYI
The tax administration shall grant an additional period of 15 calendar days to carry out this teleprocedure.
Legal Deadline | Deadline | |
|---|---|---|
Fiscal year ended other than December 31 | Within 3 months of year-end close | Within 3 months of year-end close |
Year ended 31/12/2024 | No later than 2e working day after 1er May | 20/05/2025 (taking into account the additional 15 days) |
No closure in 2024 | No later than 2e working day after 1er May | 20/05/2025 (taking into account the additional 15 days) |
In addition, new businesses which do not take stock during their first calendar year activity do not have to file an interim return. They shall be taxed on the results of the period elapsing from the beginning of their activity until the end of the first financial year and, at the latest, until 31 December of the year following that in which they were created.
Warning
Failure to comply with the obligation to report results by electronic means shall be punished by an increase of 0.2% the amount of tax corresponding to the return filed by another method (e.g. paper). This increase may not be less than €60.
The business tax (IS) is paid in 5 installments, i.e 4 quarterly installments and 1 balance.
The payment of each deposit is made by means of the deposit statement no. 2571, transmitted electronically through the EDI partner or online on the Professional area of the impots.gouv.fr website.
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.
FYI
The business does not have to make advance payments (one-time payment of the SI) in the following cases:
- The amount of the SI is less than €3,000.
- The business is newly set up (first year of operation).
- The business is newly subject to the SI (first tax period).
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 |
The balance is equal to the tax due on realized annual profits less 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 SI shows 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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Companies involved in SI
Calculation of business tax (SI)
Declaration of results
Declaration of results (mandatory particulars)
Mandatory electronic reporting
Normal taxation system
Simplified system of taxation
Payment of tax installments
EI option for assimilation to EURL
Option for the business of Persons (PI) scheme
Online service
General Directorate of Public Finance