Corporate Tax Calculator for French Companies
France corporate tax is 25%. See how much you could save.
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How France companies reduce their corporate tax
France levies a flat 25% impôt sur les sociétés (IS) on corporate profits, one of the more competitive rates in Western Europe following reductions from 33.3% in 2017. Despite the rate cut, total taxation on French businesses remains high when payroll charges, CFE, CVAE (phased out from 2024), and social contributions are included. French companies generating €1 million or more in annual profit are frequently advised to explore international holding structures for IP, dividends, and capital gains. Malta's IP Box at 5% is particularly relevant for French SaaS companies and digital product publishers. Cyprus structures work well for consulting and services, while UAE Free Zones attract French founders willing to relocate or establish genuine operational presence in Dubai. France's participation exemption regime allows French parent companies to receive 95% of dividends from EU subsidiaries tax-free, which means layering an EU intermediate holding can yield significant savings.
Top tax corridors for France companies
Malta IP Box (5%)
5% effectiveMalta's Patent and IP Box taxes qualifying IP income at an effective 5% after Malta's refundable tax credit. For French digital companies, IP ownership migration to Malta combined with a French R&D subsidiary is a fully EU-compliant structure.
Cyprus Holding (2.5% on dividends)
3% effectiveDividend income received by a Cyprus company is exempt from corporation tax under the participation exemption. Capital gains on disposal of shares are also tax-free. The France–Cyprus treaty reduces withholding taxes. Effective rate on dividend and capital income is near zero.
UAE Free Zone (9%)
9% effectiveUAE Free Zone companies qualify for 0% corporate tax on qualifying free zone income under UAE CT law. For French founders relocating to Dubai, UAE residency eliminates French tax residency, and the French exit tax (Exit Tax) provisions must be considered during transition.
Savings example: 🇫🇷 France → 🇲🇹 Malta IP Box (5%)
Annual Revenue
€1.3M
assumed
Tax in France
€313K
at 25%
Tax Optimised
€63K
at 5%
Indicative estimate based on statutory rates. Actual savings depend on structure, substance, and individual circumstances.
Frequently asked questions — France corporate tax
How does France's participation exemption work for holding companies?
France's participation exemption (régime mère-fille) exempts 95% of dividends received by a French parent from qualifying EU subsidiaries from corporation tax. The remaining 5% is taxed at 25%, giving an effective rate of 1.25% on dividend income. This makes France a viable top-level holding jurisdiction when combined with lower-rate EU intermediate structures.
What is the French exit tax when relocating abroad?
France imposes an exit tax on unrealised capital gains when a tax resident transfers domicile abroad. For individuals with assets exceeding certain thresholds, this can trigger immediate taxation. EU/EEA relocations benefit from automatic payment deferral. Advance planning — ideally 12–18 months before relocation — significantly reduces the exit tax burden.
Are French CFC rules strict?
France's CFC regime (article 209 B CGI) applies to French companies with controlling interests in foreign entities in low-tax jurisdictions. The rules are triggered when the foreign entity is taxed at less than 50% of the French rate and more than 50% of its income is passive. EU/EEA companies with genuine economic substance are generally exempt.
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