French General Tax Code
In force1. Subject to the provisions of Articles 8 ter, 239 bis AA, 239 bis AB and 1655 ter, sociétés anonymes, sociétés en commandite par actions, sociétés à responsabilité limitée that have not opted for the partnership tax regime under the conditions provided for in IV of Article 3 of Decree no. 55-594 of 20 May 1955 as amended, are liable for corporation tax, regardless of their purpose, cooperative societies and their unions as well as, subject to the provisions of 6° of 1 of Article 207, public establishments, State bodies enjoying financial autonomy, departmental and municipal bodies and all other legal entities engaged in profit-making operations or transactions.
1 bis. However, associations governed by the law of 1st July 1901, associations governed by the local law maintained in force in the Moselle, Bas-Rhin and Haut-Rhin departments, unions governed by articles L. 2131-1 to L. 2136-2 of the French Labour Code, public interest foundations, company foundations, endowment funds and congregations, whose management is disinterested, when their not-for-profit activities remain significantly preponderant and the amount of their operating revenue received during the calendar year in respect of their for-profit activities does not exceed €76,679. This limit is indexed each year to the forecast consumer price index, excluding tobacco, set out in the Finance Bill for the year. The activities of management and capitalisation, by endowment funds, of donations, rights and legacies, the fruits of which are paid to bodies other than those mentioned in this paragraph or to public bodies for the exercise of profit-making activities, are deemed to be profit-making.
The organisations mentioned in the first paragraph become liable for the corporation tax provided for in 1 from 1 January of the year in which one of the three conditions provided for in the aforementioned paragraph is no longer met.
The organisations mentioned in the first paragraph are liable for the corporation tax provided for in 1 on the results of their financial profit-making activities and holdings.
2. Subject to the provisions of article 239 ter, non-trading companies are also liable for the said tax, even when they do not take one of the forms referred to in 1, if they engage in a business or operations referred to in articles 34 and 35.
However, non-trading companies whose principal activity falls within the scope of Article 63 may benefit from the provisions of Article 75 where they are subject to an actual taxation scheme. Those subject to the regime provided for in article 64 bis are not liable for the tax referred to in 1 when the ancillary activities referred to in articles 34 and 35 that they may carry out do not exceed the thresholds set in article 75: the profits resulting from these activities are then determined and taxed according to the rules specific to them.
3. Are subject to corporation tax if they opt to be subject to this tax under the conditions set out in article 239:
a. General partnerships;
b. The non-trading companies referred to in 1° of article 8;
c. Limited partnerships;
d. Joint ventures;
e. Limited liability companies where the sole member is a natural person;
f. Limited liability agricultural holdings referred to in 5° of Article 8;
g. Public interest groupings referred to in Article 239 quater B;
h. The sociétés civiles professionnelles referred to in article 8 ter;
i. The groupements de coopération sanitaire and groupements de coopération sociale et médico-sociale referred to in article 239 quater D;
j. The interprofessional outpatient care companies referred to in 7° of article 8.
This option entails the application to the said companies and the said groupings, subject to the exceptions provided for by this code, of all the provisions to which the legal entities referred to in 1 are subject.
4. Even in the absence of an option, corporation tax applies, subject to the provisions of article 1655 ter, in sociétés en commandite simple and in sociétés en participation, including financial syndicates, to the share of profits corresponding to the rights of the limited partners and to those of the partners other than those indefinitely liable or whose names and addresses have not been provided to the administration.
5. Subject to the exemptions provided for in articles 1382 and 1394, public establishments, other than scientific, educational and assistance establishments in respect of their financial years open until 31 December 2023, as well as associations and collectives not subject to corporation tax by virtue of any other provision, with the exception, on the one hand, of foundations recognised as being in the public interest and, on the other hand, of endowment funds whose articles of association do not provide for the possibility of consuming their endowment in capital, are subject to the said tax on the basis of income from assets that are not related to their profit-making activities.
The following qualify as income from assets:
a. Income from the rental of the built and unbuilt properties they own, and those to which they are entitled as members of co-ownership property companies referred to in article 1655 ter;
b. Income from the operation of agricultural or forestry properties;
c. Income from movable capital available to them, where such income does not fall within the scope of the withholding tax referred to in article 119 bis ; such income is counted in the taxable income for its gross amount;
d. (Repealed with effect from financial years ending on or after 31 December 2009);
e. (Repealed with effect from financial years ending on or after 31 December 2009).
5 bis. Intermediary associations under agreement, mentioned in article L. 5132-7 of the Labour Code whose management is disinterested and personal services associations, approved pursuant to article L. 7232-1 of the same code or authorised pursuant to Article L. 313-1 of the Social Action and Family Code are subject to corporation tax under the conditions provided for in 5.
5 ter. Foundations recognised as being in the public interest are subject to corporation tax on capital gains whose taxation has been deferred pursuant to 7 quinquies of article 38 of this code, including in cases where these relate to their non-profit or exempt activities.
6. 1° L'organe central du crédit agricole, les caisses régionales de crédit agricole mutuel mentionnées à l'article L. 512-21 of the Monetary and Financial Code and the local mutual agricultural credit banks affiliated to them are subject to corporation tax under the conditions of ordinary law.
2° When they do not carry out any banking activity on their own account or any remunerated activity as a financial intermediary, the local caisses mentioned in 1° are liable for corporation tax under the conditions set out in 5 and Article 219 bis.
3° A decree in the Conseil d'Etat sets out the terms and conditions for the application of this 6, in particular the transitional provisions that would be necessary due to the change in the tax regime applicable to the bodies mentioned in 1°.
7. The mutual credit banks mentioned in article L. 512-55 of the Monetary and Financial Code shall be subject to corporation tax under the conditions of ordinary law.
A decree in the Council of State shall, where necessary, lay down the conditions for the application of this provision.
8. (provision no longer applicable)
9. The caisses de crédit mutuel agricole et rural affiliated to the fédération centrale du crédit mutuel agricole et rural referred to in article L. 511-30 of the Monetary and Financial Code are subject to corporation tax under the conditions of ordinary law.
A decree sets the conditions for the application of this 9.
10. The caisses d'épargne et de prévoyance and the caisses de crédit municipal are subject to corporation tax;
11. (repealed as from the date of entry into force of loi n° 2002-73 du 17 janvier 2002).
