Corporate tax calculator (IS) 2026

Calculate your company's corporate tax with the 15% reduced rate and the 25% standard rate, your net profit after tax and your effective rate.

Parameters

Annual taxable profit (€)

The company's taxable income before corporate tax.

Eligible for the 15% reduced rate

Cumulative conditions: revenue excluding VAT below €10M, fully paid-up capital held at least 75% by individuals.

Corporate tax rates 2025-2026. The 15% reduced rate requires revenue below €10M and at least 75% of the capital held by individuals. Indicative estimate.

Corporate tax due

10 750 €

Net profit after tax

49 250 €

Effective tax rate

17.9%

Tax breakdown

Taxable profit60 000 €

15% bracket (up to 42 500 €) on 42 500 €- 6 375 €

25% bracket (above) on 17 500 €- 4 375 €

Total corporate tax- 10 750 €

Net profit after tax49 250 €

Profit, corporate tax and net profit

If you distribute the profit as dividends

Distributable dividends

49 250 €

→

Flat tax (30%)

- 14 775 €

→

Net dividends

34 475 €

When distributed, dividends paid to an individual are subject to the single flat-rate levy (PFU or “flat tax”) of 30% (12.8% income tax + 17.2% social contributions). Indicative estimate, on top of the corporate tax already paid by the company.

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What is corporate tax (IS)?

Corporate tax (corporation tax, IS) is a tax levied on the profits earned by companies subject to this regime, such as SAS, SASU, SARL or EURL that have opted for corporate tax. Unlike income tax, where the profit is taxed at the entrepreneur's level, corporate tax is calculated and paid directly by the company on its taxable income. The net profit remaining after tax can then be retained, reinvested or distributed as dividends to shareholders.

Taxable profit

The company's taxable income, after add-backs and deductions, is the basis for calculating corporate tax.

Two rates

A reduced rate of 15% for eligible SMEs and a standard rate of 25% above the threshold or by default.

Net profit

Once corporate tax is deducted, the net profit can be retained within the company or distributed.

Corporate tax rates (15% and 25%)

The standard corporate tax rate is set at 25% of taxable profit. SMEs that meet the eligibility conditions benefit from a reduced rate of 15% on the portion of profit up to €42,500; the portion of profit above this threshold remains taxed at 25%.

Example: for an eligible company earning €60,000 in profit, corporate tax breaks down as follows: €42,500 × 15% = €6,375, then (60,000 − 42,500) × 25% = €4,375. Total corporate tax is therefore €10,750, an effective rate of about 17.9%. Without eligibility for the reduced rate, the same profit would be taxed at 25%, i.e. €15,000 of corporate tax.

Reduced-rate conditions

The 15% reduced rate is not automatic: it is reserved for small and medium-sized enterprises that simultaneously meet three conditions.

Revenue excluding tax below €10 million for the financial year concerned.
Fully paid-up share capital at the close of the financial year.
Capital held at least 75% by individuals (directly or indirectly through companies that themselves meet these criteria).

If any of these conditions is not met, the entire profit is taxed at the standard rate of 25%.

Frequently asked questions about corporate tax

What is the corporate tax rate in 2026?▼

The standard corporate tax rate is 25% of taxable profit. A reduced rate of 15% applies to the portion of profit up to €42,500 for SMEs that meet the eligibility conditions, with the portion above taxed at 25%.

What are the conditions for the 15% reduced rate?▼

Three cumulative conditions: revenue excluding tax below €10 million, fully paid-up share capital, and capital held at least 75% by individuals (or by companies that themselves meet these conditions).

How is corporate tax calculated with the reduced rate?▼

For an eligible company, corporate tax equals 15% on the portion of profit up to €42,500, plus 25% on the portion of profit above that threshold. For example, for a profit of €60,000: €42,500 × 15% = €6,375, then €17,500 × 25% = €4,375, i.e. €10,750 of corporate tax in total.

What is the effective corporate tax rate?▼

The effective rate is the ratio between the corporate tax actually paid and the taxable profit. Thanks to the reduced rate, an eligible SME has an effective rate below 25%, all the lower as its profit is close to €42,500.

What happens if I distribute the profit as dividends?▼

The net profit after corporate tax can be distributed as dividends to shareholders. For an individual, these dividends are generally subject to the flat tax of 30%, which includes 12.8% income tax and 17.2% social contributions. This taxation is in addition to the corporate tax already paid by the company.

Which companies are subject to corporate tax?▼

Corporate tax applies notably to SAS, SASU, SARL, EURL that have opted for corporate tax, and SA. Some structures are subject by default to income tax (sole proprietorships, single-member EURL owned by an individual) but may opt for corporate tax.