9. Taxation of Business Profits in France
9.1. Main Business Taxation Options in France
Broadly speaking, the basis on which you will be taxed will depend on the legal/business tax structure you adopt for running the business.
Depending on these two criteria a business may be taxed either under the personal income tax system, called Impôts sur le Revenu, or the system of company taxation, called Impôts sur les Societiés.
If you are a sole trader (Entreprise Individuelle) you are automatically taxed under the personal income tax system. You have the choice of being taxed either as a micro-entrepreneur, or through the rules of regime réel.
If you set up as a limited company in sole proprietorship (Entreprise Unipersonnelle à Responsabilité Lmitée - EURL) you have the choice of being taxed under the personal income tax system through the rules of regime réel, or through the system of company taxation.
A private limited company in joint ownership (Société à Responsabilité Limitée - SARL) can only be taxed under company tax (Impôts sur les Societiés), unless it is a special type of family business, or a small company under 5 years old, when it can elect to be taxed under the personal income tax system.
Details of the financial assistance available to small business owners as a result of Covid-19 can be found at Hardship Grants for Small Business Owners.
The Guides to France are published for general information only.
Please visit our Disclaimer for full details.