The DGFiP Statistics Bulletin No. 51, released on 29 September 2026, reveals that gross corporate income tax (impôt sur les sociétés – IS) collections for fiscal year 2025 reached €83.7 billion, a 2.5% increase over 2024. After deducting €13 billion in tax reductions and credits (including the CICE replacement, research tax credit, and competitiveness and employment tax credit), net IS revenue stands at €70.7 billion, marking a 4% year-on-year rise. The data covers 1.2 million liable entities, with the top 0.5% of companies contributing 60% of net revenue. The effective average tax rate (net IS / taxable profit) edged up to 22.3% from 21.8% in 2024, reflecting the phased reduction of the standard IS rate to 25% (completed in 2022) and the narrowing of the reduced 15% rate for SMEs to the first €42,500 of profit. The bulletin also highlights a 7% increase in the research tax credit (CIR) to €6.8 billion and a stable CICE-derived credit at €3.2 billion. These figures inform the 2027 Finance Bill debates on corporate tax base broadening and the potential introduction of a global minimum tax (Pillar Two) top-up mechanism.
Key Takeaways
- Resilient Corporate Tax Base Despite Economic Headwinds: The 2.5% gross revenue growth outpaced nominal GDP growth (estimated at 1.8% in 2025), indicating improved profitability among large groups and effective anti-avoidance measures (e.g., interest limitation, hybrid mismatch rules).
- Tax Credits Remain a Significant Leakage: The €13 billion in credits represents 15.5% of gross IS, with the CIR alone accounting for over half. Policymakers are scrutinizing the cost-effectiveness of these incentives versus direct grants, especially in light of EU state aid constraints.
- Implications for Pillar Two Implementation: With the effective rate at 22.3%, many French multinationals fall below the 15% global minimum tax threshold after accounting for substance-based carve-outs. The 2027 Finance Law is expected to introduce a Qualified Domestic Minimum Top-up Tax (QDMTT) to capture the difference, potentially adding €1-2 billion in revenue.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement