Entrepreneur Corporate tax cut in 2021

Corporate tax cut in 2021





When the activity is carried out within a company (SAS, SARL, etc.), the profits are, in principle, taxed, automatically or on option, with corporation tax. The rate of this tax has been gradually reduced in recent years. A downward trajectory that continues until 2022.

The tax rate

In 2021, companies are liable for corporation tax at the standard rate of 26.5% (compared to 28% in 2020). A rate that will drop to 25% from 2022.

However, depending on the amount of turnover, this rate may vary, upward or downward. Thus, a reduced rate of 15%, up to € 38,120 in profit, applies to small and medium-sized enterprises (SMEs). Until now, this rate concerned SMEs whose turnover did not exceed € 7.63 million. This ceiling is raised to € 10 million for fiscal years beginning on or after 1er January 2021.

Note: to take advantage of the reduced rate, these SMEs must also meet the conditions relating to the holding of their capital.

And the corporate tax rate is only reduced to 27.5% (instead of 26.5%) in 2021 for companies whose turnover is equal to or greater than € 250 million.

A spontaneous payment

It is up to the company to calculate the corporation tax itself and to spontaneously remotely adjust it to the tax authorities.

This payment first takes the form of four quarterly installments (March 15, June 15, September 15, December 15).

Then, after the end of the financial year, the company proceeds to liquidate the tax actually due. A liquidation which occurs during the declaration of the results of the financial year. Payment of the corresponding balance being made when depositing balance statement no.2572, no later than May 15 of the year following that of the year-end when the latter coincides with the calendar year (15 from 4e month following the end of the financial year for other companies).

Lower corporate tax
Tax rate
Exercises open from 2020 Exercises open from 2021 Exercises open from 2022
IT
– 15% up to € 38,120 profit
– 28% above 38 120 €
– 15% up to € 38,120 profit
– 26.5% above € 38,120
– 15% up to € 38,120 profit
– 25% above 38 120 €
€ 7.63m
28% – 15% up to € 38,120 profit
– 26.5% above € 38,120
– 15% up to € 38,120 profit
– 25% above 38 120 €
10 M €
28% 26.5% 25%
Turnover ≥ 250 M € – 28% up to € 500,000 profit
– 31% above € 500,000
27.5% 25%

Art. 18, law n ° 2020-1721 of December 29, 2020, JO of

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