Corporate Tax 2026: Rates, Calculation and Instalments
As soon as you operate through a company subject to corporate tax (IS) — SASU, EURL by option, SAS — your business's profit is taxed before any distribution. Understanding the corporate-tax mechanism is essential to steer your remuneration and anticipate your cash flow. Here are the rules applicable in 2026, figures included.
The two IS rates in 2026
Corporate tax works on a two-tier scale:
| Profit bracket | 2026 IS rate |
|---|---|
| Up to €42,500 | 15% (reduced rate) |
| Above €42,500 | 25% (standard rate) |
The reduced 15% rate on the first €42,500 of profit is not automatic. It requires meeting three conditions:
- revenue excluding tax below €10 million;
- a fully paid-up capital;
- capital held at least 75% by individuals (or companies themselves meeting this criterion).
Almost all freelance SASUs and EURLs meet these conditions and therefore benefit from the reduced rate on the first bracket.
How taxable profit is calculated
IS is calculated on the fiscal profit, i.e. the accounting result adjusted for tax rules. In practice:
Income (revenue, other income) − deductible expenses = result.
Deductible expenses include your director's remuneration, contributions, rent, amortisation, fees. This is the whole point of a company under IS: what you pay yourself as remuneration reduces the profit taxable at IS (but becomes taxable at income tax for you). See the list of deductible expenses.
A worked example
Take an SASU whose activity generates €120,000 of income, with €20,000 of operating expenses and a president's remuneration of €40,000 (contributions included on the company side).
- Taxable profit: 120,000 − 20,000 − 40,000 = €60,000
- IS on the first €42,500: 42,500 × 15% = €6,375
- IS on the remaining €17,500: 17,500 × 25% = €4,375
- Total IS: €10,750
The profit after IS (€49,250) can be kept in the company or distributed as dividends, then subject to the 30% flat tax. This trade-off is developed in dividends or salary in an SASU.
IS instalments
IS is not paid in one go. Above a certain amount, the company pays four quarterly instalments (due on 15 March, 15 June, 15 September and 15 December), calculated on the previous year's profit. The balance is settled after the year-end, when filing the tax return (form 2065).
Young companies are often exempt in the first year, lacking a reference profit — a cash-flow point to anticipate, as with pay-as-you-earn for the self-employed.
Loss carry-forward
If your company makes a loss one year, this loss is not lost. It can be:
- carried forward to the profits of following years, with no time limit (within certain amount limits);
- or, under conditions, carried back to the previous year's profit.
This mechanism softens the taxation of cyclical or start-up activities: a loss-making year reduces the tax of a later profitable year.
Key takeaway: the reduced 15% rate on the first €42,500 of profit is the main tax advantage of a small company under IS. It rewards retention and the salary/dividend trade-off.
IS is only relevant beyond a certain activity level. Below that, the simplicity of the micro or the real regime under income tax often wins. Compare the scenarios for your situation with the status comparator before choosing your tax regime.