The remuneration received by the director under his office shall be subject to income tax (IR) in the category of wages and salaries.

How do I report my remuneration?

The director must declare the remuneration of his or her corporate mandate received for the year 2023 at the time of its 2023 annual income tax returndone in May/June 2024.

The amount of this remuneration must be indicated on one of the following lines depending on the status of the manager:

• Chief Executive SARL, Associate Manager SCA: Line “Income of partners and managers” (1GB to 1JB) of game ‘salaries, wages, pensions, annuities’ of the cerfa form no. 2042
• Other Executives: Line ‘wages and salaries’ (1AJ to 1DJ) of the game ‘salaries, wages, pensions, annuities’ of the cerfa form no. 2042

He must file his return online at Impasse.gouv.fr via his Special Space :

Taxes: access your Special Space

The period during which the manager must report his taxes varies according to the department in which he resides. We provide a simulator to determine the reporting deadline by informing the department:

Know the deadline for filing your tax return

How is the remuneration of the social mandate taxed?

The remuneration of the executive's social mandate is included in the taxable income of the executive in the progressive scale. If he has other income taxable at the progressive income tax rate (remuneration for an employment contract, for example), all this income is added up to be taxed together at the progressive rate.

A reduction of 10% shall be applied to such income before taxation to take account of professional expenses currents of the leader. Examples are travel expenses between home and work, catering expenses in the workplace.

Depending on the amount of revenue, the tax administration applies the following progressive scale:

Once the rates are applied to the various tranches covered by the manager's income, a single rate is determined and applied each month. Taxes are then levied at source by the tax administration.

For more information on withholding tax, see the dedicated card.

Is the remuneration deductible from the outcome of the business?

The remuneration paid to the director shall be deductible from tax of the business if all of the following conditions are met:

• It must correspond to a actual work.
• It must not be excessive in relation to the service rendered (for example, remuneration must not be disproportionate to the business' turnover, profits and other remuneration).

Where a sum is deducted from the tax result of a business, it shall not be taken into account in the calculation of the business tax.

For more information on the amounts deductible from the outcome of a business, see the dedicated card.

The interest on a partner's current account received by the manager constitutes a form of remuneration for the manager. They shall be subject to income tax (IR) in the category of income from movable capital.

To learn more about the partner's current account, you can consult the dedicated card.

How are interest taxes levied?

The remuneration of the current partner account received by the manager is automatically subject to flat-rate levy (PFU). However, the manager may opt for this remuneration to be subject to the progressive income tax (IR) schedule.

Regardless of the option chosen, a flat-rate non-discharge levy (NTFP) of 12.8% shall be applied automatically to the remuneration at the time of its payment. It is an income tax down payment. In the event of a surplus, the difference shall be refunded to the manager.

This flat-rate levy is non-discharge as it is in reality only a payment of one down payment of income tax payable in the following year. The payment on account shall be made by the payment institution responsible for paying the income from movable capital to the manager.

The manager may apply to be exempted from the non-discharge lump sum levy (NTFP) if he or she meets one of the following conditions:

• If he's alone: his reference tax income of the penultimate year was less than €50,000 on payment of the deposit
• If he is married or in transit: his reference tax income of the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for an exemption by 30 November of the previous year the payment of income. He must attach to his request for exemption an attestation on his honor in which he indicates that he meets the conditions of income.

The final taxation of the remuneration then occurs at the time of the tax return for the year in which the remuneration was received.

Tax scale The tax regime applicable to remuneration is either that of the single flat-rate levy or that of the option income tax:

For more information on the taxation of income from movable property, you can consult the corresponding page on impots.gouv.fr.

How do I declare the interest on a partner's current account?

Tax scale The tax return of the manager varies according to the way his remuneration is taxed: either to the PFU or to the income.

Is the remuneration deductible from the outcome of the business?

Interest paid to current account shareholders is deductible from the business' income tax.

However, this deduction is limited for tax purposes by a maximum rate of deductible interest, also known as the ‘reference rate’. The amount varies according to the closing date the exercise of business.

Thus, when the interest rate (fixed by the articles of association or agreement) is above the reference rate, the excess part of the interest paid to the member is not deductible the taxable profit of the business.

Thus, the interest, received by the associate manager, deductible from the outcome of the business that he directs is not not subject to business tax. They are only taxed at the income tax officer level.

The excess portion is taxed both at the business tax business level and at the income tax officer level.

For more information on the amounts deductible from the outcome of a business, see the dedicated card.

Dividends received by the manager are subject to income tax in the category of income from movable capital.

How are dividends taxed?

The dividends received by the director shall be automatically subject to flat-rate levy (PFU). However, the manager may opt for this remuneration to be subject to the progressive income tax (IR) schedule.

Regardless of the option chosen, a flat-rate non-discharge levy (NTFP) of 12.8% shall be applied automatically to the remuneration at the time of its payment. It is an income tax down payment. In the event of a surplus, the difference shall be refunded to the manager.

This flat-rate levy is non-discharge as it is in reality only a payment of one down payment of income tax payable in the following year. The payment of this advance is made by the payment institution responsible for paying the income from movable capital to the manager.

The manager may request exemption from the non-discharge lump sum levy (NTFP) if he is in one of the following situations:

• If he's alone: his reference tax income of the penultimate year was less than €50,000 on payment of the deposit
• If he is married or in transit: his reference tax income of the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for an exemption by 30 November of the previous year the payment of income. He must attach to his request for exemption an attestation on his honor in which he indicates that he meets the conditions of income.

The final taxation of the remuneration then occurs at the time of the tax return for the year in which the remuneration was received.

Tax scale The tax regime applicable to dividends is either that of the single flat-rate levy or that of the option income tax.

For more information on the taxation of income from movable property, you can consult the corresponding page on impots.gouv.fr.

How to declare dividends?

Tax scale The executive's income tax return depends on how the remuneration for his or her term of office is taxed: either the UCP or the income tax.

Are dividends deductible from the outcome of the business?

Dividends paid to executives are not deductible the tax result of the business. Before being distributed, these dividends constitute the profit business. Thus, they are subject to business tax (SI) at the business level. Once distributed, these dividends are taxed at the income tax of each partner or shareholder.

For more information on business tax, see the dedicated card on our website.

The salary received by the manager under his employment contract shall be subject to income tax in the category of wages and salaries.

How do I report a salary?

The manager must declare the salary he receives under his employment contract for the year 2023 at the time of his 2023 annual income tax returndone in May/June 2024.

The amount of this remuneration must be indicated on the line ‘Salaries and wages’ (1AJ to 1DJ) of the game ‘salaries, wages, pensions, annuities’ of the cerfa form no. 2042.

He must file his return online on Impasse.gouv.fr via his special space :

Taxes: access your Special Space

The period during which the manager must declare his taxes varies according to the department in which he lives. We provide a simulator to know this date directly by informing his department of residence:

Know the deadline for filing your tax return

How is the salary taxed?

The executive's salary is included in taxable income in the executive's progressive scale.

If he has other income taxable at the progressive income tax rate (remuneration for the social mandate, for example), all his income is added up to be taxed together at the progressive rate.

A reduction of 10% shall be applied to such income before taxation to take account of professional expenses currents of the leader. Examples are travel expenses between home and work, catering expenses in the workplace.

Depending on the amount of revenue, the tax administration applies the following progressive scale:

Once the different rates are applied to the different brackets covered by the manager's income, a single rate is determined and applied each month. Taxes are then levied at source by the tax administration.

For more information on withholding tax, see the dedicated card.

Is the salary deductible from the outcome of the business?

The salaries paid to the manager are tax deductible business if all of the following conditions have been completed:

• They must correspond to a actual work.
• They must not be excessive in relation to the service rendered (for example, the salary must not be disproportionate to the turnover of the business, profits and other remuneration).

When a sum is deducted from a business' income tax, it is not included in the calculation of business tax (IS).

For more information on the amounts deductible from the outcome of a business, see the dedicated card.

The remuneration received by the director in respect of his or her term of office as a director or member of the supervisory board shall be subject to income tax in the category of income from movable capital.

How is remuneration taxed?

The remuneration of the director or supervisory board member received by the director is automatically subject to the single lump sum levy (SCF). However, the manager may opt for this remuneration to be subject to the progressive income tax schedule.

Regardless of the option chosen, a flat-rate non-discharge levy (NTFP) of 12.8% shall be applied automatically to the remuneration at the time of its payment. It is an income tax down payment. In the event of a surplus, the difference shall be refunded to the manager.

This flat-rate levy is non-discharge as it is in reality only a payment of one down payment of income tax payable in the following year. The payment on account shall be made by the payment institution responsible for paying the income from movable capital to the manager.

The manager may apply to be exempted from the non-discharge lump sum levy (NTFP) if he or she meets one of the following conditions:

• If he's alone: his reference tax income of the penultimate year was less than €50,000 on payment of the deposit
• If he is married or in transit: his reference tax income of the penultimate year was less than €75,000 when the deposit is paid.

He must apply to his financial institution for an exemption by 30 November of the previous year the payment of income. He must attach to his request for exemption an attestation on his honor in which he indicates that he meets the conditions of income.

The final taxation of the remuneration then occurs at the time of the tax return for the year in which the remuneration was received.

Tax scale The tax regime applicable to remuneration is either the flat-rate levy or the option-based income tax.

For more information on the taxation of income from movable property, you can consult the corresponding page on impots.gouv.fr.

How to report the remuneration of the corporate mandate of the director or member of the supervisory board?

Tax scale The executive's income statement varies depending on how the remuneration for his or her term as a director is taxed: either to the UCP or to the income tax payer.

Is the remuneration deductible from the outcome of the business?

The remuneration paid to the director or member of the supervisory board shall be deductible from tax of the business if all of the following conditions are met:

• It must correspond to a actual work.
• It must not be excessive in relation to the service rendered (for example, remuneration must not be disproportionate to the business' turnover, profits and other remuneration).

Where a sum is deducted from the tax result of a business, it shall not be taken into account in the calculation of the business tax.

However, the amount of remuneration that can be deducted depends on the number of employees in the business: less than 5 or 5 employees or more.

For more information on the amounts deductible from the outcome of a business, see the dedicated card.