Reduced Corporate Tax Rate for SMEs
This scheme concerns the application of the reduced corporation tax rate on a first band of profits for eligible SMEs. The operations listed in the catalogue are: reduction of the tax burden. To prepare: check turnover, capital ownership and paying-up, the tax regime and the band of profits concerned for the financial year. The detailed conditions must be checked in the official source before any application or declaration.
Reduced corporation tax rate for SMEs aims to reduce the tax burden on small and medium-sized enterprises by granting them a partial reduction of their corporation tax rate on their taxable profits. In practice it covers the application of the reduced corporation tax rate on a first band of profits for eligible SMEs. The key point is to check the beneficiary’s profile, the geographic scope (national aid) and the conditions in force before including the advantage in the company’s budget.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
Beneficiaries listed in the catalogue: companies subject to corporation tax with turnover for the financial year (or tax period, brought back to 12 months where applicable) below €7,630,000; the parent company of a group whose member companies’ combined turnover is below €7,630,000. The capital of these companies must be fully paid up and held continuously at least 75% by individuals, or by a company meeting the same conditions whose capital is at least 75% held by individuals. In calculating this percentage, holdings by venture capital companies, venture capital mutual funds (FCPR), regional development companies and financial innovation companies are not taken into account, provided there is no dependency link between the company and these companies or funds.
Eligibility conditions
The detailed conditions are not recorded in the catalogue. Check the admission criteria, exclusions, supporting documents, dates and combination rules in the official source.
What the scheme covers
Operations and exclusions indicated in the catalogue: Reduction of the tax burden.
Amount and funding terms
Amount and terms indicated in the catalogue: the reduced corporation tax rate of 15% applies to SMEs on the band of profits below €42,500. The 25% rate applies, for financial years starting from 1 January 2023, to profits above €42,500.
How to apply
1. Check that the company and the operation fall within the scheme’s tax scope. 2. Check the calculation, caps and combination conditions in the up-to-date tax documentation. 3. Gather the agreements, receipts, evidence of staff made available or documents proving the payment. 4. Have the treatment applicable to the financial year concerned validated and keep the documents in case of an audit.
Timeline
The applicable timetable must be confirmed in the official source. Check the period of costs taken into account, the deadline and any transitional rules.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
- Type of funding
- Tax exemption
- Status
- Ongoing
- Funding rate
- 15%
- Automatically extracted — check the official source
- Geographic scope
- All of France
Frequently asked questions
What is the “Reduced corporation tax rate for SMEs” for?
The application of the reduced corporation tax rate on a first band of profits for eligible SMEs.
What advantage is provided?
Amount and terms indicated in the catalogue: the reduced corporation tax rate of 15% applies to SMEs on the band of profits below €42,500. The 25% rate applies, for financial years starting from 1 January 2023, to profits above €42,500.
Who can benefit?
Beneficiaries listed in the catalogue: companies subject to corporation tax with turnover for the financial year (or tax period, brought back to 12 months where applicable) below €7,630,000; the parent company of a group whose member companies’ combined turnover is below €7,630,000. The capital of these companies must be fully paid up and held continuously at least 75% by individuals, or by a company meeting the same conditions whose capital is at least 75% held by individuals. In calculating this percentage, holdings by venture capital companies, venture capital mutual funds (FCPR), regional development companies and financial innovation companies are not taken into account, provided there is no dependency link between the company and these companies or funds.
Which supporting documents should I prepare?
Check turnover, capital ownership and paying-up, the tax regime and the band of profits concerned for the financial year. Consult the official list of documents to enclose.
Official source
No official URL is available in our data for this grant.
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