{"id":2114231,"date":"2026-08-31T08:18:27","date_gmt":"2026-08-31T06:18:27","guid":{"rendered":"https:\/\/kohenavocats.fr\/2026\/08\/31\/french-corporate-tax-instalment-15-september-2026-foreign-owned-company\/"},"modified":"2026-08-31T08:22:48","modified_gmt":"2026-08-31T06:22:48","slug":"french-corporate-tax-instalment-15-september-2026-foreign-owned-company","status":"publish","type":"post","link":"https:\/\/kohenavocats.fr\/en\/2026\/08\/31\/french-corporate-tax-instalment-15-september-2026-foreign-owned-company\/","title":{"rendered":"French Corporate Tax Instalment on 15 September 2026: Calculation, Payment and Modulation for Foreign-Owned Companies"},"content":{"rendered":"

For a foreign-owned company carrying on business in France, the 15 September 2026 deadline may concern a third advance payment of French corporate income tax, called imp\u00f4t sur les soci\u00e9t\u00e9s<\/em> (IS), an adjustment, or, if the financial year ended on 31 May 2026, the final balance. The answer turns on the accounting year, last closed result, applicable rate and advances already paid.<\/p>\n

This matters for overseas founders and groups: the French subsidiary may have a different year-end from its parent, while a branch attributes French taxable profits to a permanent establishment. A payment made without checking the period and calculation may create an unnecessary cash outflow or underpayment interest and surcharge.<\/p>\n

This article gives a practical method for checking the IS advance, completing electronic form n\u00b0 2571, documenting a reduction after a fall in current profit, and preserving a refund or claim. It defines the acronyms used: Direction g\u00e9n\u00e9rale des finances publiques<\/em> (DGFiP), the French public-finance administration; service des imp\u00f4ts des entreprises<\/em> (SIE), the company tax office; Direction des grandes entreprises<\/em> (DGE), the large-business tax office; Code g\u00e9n\u00e9ral des imp\u00f4ts<\/em> (CGI), the General Tax Code; and Livre des proc\u00e9dures fiscales<\/em> (LPF), the Tax Procedure Book.<\/p>\n

For wider corporate-law context, consult the firm\u2019s French corporate law guidance<\/a>. The answer remains limited to the tax instalment and related procedure.<\/p>\n

I. French corporate tax instalment on 15 September 2026: who must pay and how is it calculated?<\/h2>\n

A. Which foreign-owned French company is concerned, and how does the year-end change the deadline?<\/h3>\n

The starting point is the official September 2026 calendar. The DGFiP identifies 15 September 2026 as the deadline for the advance payment of IS and, where applicable, the 3.3% social contribution on IS using the advance-payment statement n\u00b0 2571. The same date is also identified for the final balance using statement n\u00b0 2572 when the company\u2019s financial year closed on 31 May 2026. The DGFiP professional tax calendar for September 2026<\/a> should therefore be read with the company\u2019s actual closing date, not treated as a universal third-instalment rule.<\/p>\n

The official DGFiP event for companies subject to IS on 15 September 2026<\/a> refers to both the n\u00b0 2571 advance and the n\u00b0 2572 balance for the specific 31 May closing. A foreign shareholder does not change that calendar. A French SAS, meaning a soci\u00e9t\u00e9 par actions simplifi\u00e9e<\/em> or simplified joint-stock company, and a French SARL, meaning a soci\u00e9t\u00e9 \u00e0 responsabilit\u00e9 limit\u00e9e<\/em> or limited-liability company, remain subject to the French rules when they are liable for IS. The fact that the parent is incorporated in the United Kingdom, the United States, Singapore or another country does not turn the French company\u2019s tax advance into a voluntary payment.<\/p>\n

The position of a branch is more fact-sensitive. A branch has no separate legal personality from its foreign head office, but French taxable profits may arise from the French business or permanent establishment under domestic law and any applicable tax treaty. The foreign head office must not assume that a French registration number alone creates the same payment profile as a subsidiary, nor assume that the absence of a French subsidiary removes every French tax obligation. The tax account, the registration data and the French results actually attributed to the activity must be reconciled before choosing the form and amount of the payment.<\/p>\n

Article 1668 of the CGI establishes the basic mechanism. It provides for quarterly advances calculated from the results of the last closed financial year and states, in the official text: Les paiements doivent \u00eatre effectu\u00e9s au plus tard les 15 mars, 15 juin, 15 septembre et 15 d\u00e9cembre de chaque ann\u00e9e.<\/q> The full text of article 1668 of the CGI on L\u00e9gifrance<\/a> also provides a first-period exemption for newly created companies or companies newly subject to IS, rules for annualising a non-twelve-month reference period, a specific rule for very large companies and a mechanism to stop later advances when the amount already paid covers the expected IS before tax credits.<\/p>\n

For a company with a 31 December year-end, the 15 September payment will ordinarily be the third advance in the current financial year. That statement is not enough for a foreign group. The mapping depends on the previous closing date, as the following working table shows:<\/p>\n\n\n\n\n\n\n\n\n
Financial year-end<\/th>\nFirst advance<\/th>\nSecond advance<\/th>\nThird advance<\/th>\nFourth advance<\/th>\n<\/tr>\n<\/thead>\n
20 November to 19 February<\/td>\n15 March<\/td>\n15 June<\/td>\n15 September<\/td>\n15 December<\/td>\n<\/tr>\n
20 February to 19 May<\/td>\n15 June<\/td>\n15 September<\/td>\n15 December<\/td>\n15 March<\/td>\n<\/tr>\n
20 May to 19 August<\/td>\n15 September<\/td>\n15 December<\/td>\n15 March<\/td>\n15 June<\/td>\n<\/tr>\n
20 August to 19 November<\/td>\n15 December<\/td>\n15 March<\/td>\n15 June<\/td>\n15 September<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This table explains why an overseas parent\u2019s group calendar cannot be copied into the French company\u2019s tax diary. A company whose French year closes on 30 June may have its 15 September payment in a different position from a company closing on 31 December. A company that changed its year-end may have an accounting period shorter or longer than twelve months. The form displayed in the professional tax account must be checked against the legal sequence and the closing date.<\/p>\n

New French companies need a separate check. Article 1668 exempts a newly created company, or a company newly subject to IS, from advances during its first financial year or first period of taxation. This does not mean that the first period is tax-free. The company must still calculate and declare the taxable result, and the balance becomes payable under the rules applicable to the closing date. If a new company sees a pre-filled n\u00b0 2571 statement, its director should compare the date of incorporation, the date of the IS option, the start of business, the first closing and the information held by the DGFiP.<\/p>\n

The DGFiP also states that no advance statement n\u00b0 2571 or advance payment is due when the IS for the last closed financial year is below \u20ac3,000. This administrative threshold must not be confused with every other exemption in article 1668. The statute contains separate rules for certain bodies and special tax regimes. A commercial company cannot infer a general exemption from a temporary fall in cash, a low turnover month or an unpaid customer invoice. The reason for the exemption must match the company\u2019s status and the period used for the tax calculation.<\/p>\n

Four French documents should be kept separate. The n\u00b0 2065 and its attachments report the company\u2019s annual taxable result; the n\u00b0 2571 reports an advance; the n\u00b0 2572 reports the final balance; and the tax account records the payment and the administration\u2019s messages. The 2026 n\u00b0 2571 form and calculation guidance<\/a> gives the payment dates, the treatment of a short or long reference period and the calculation lines. It is not a substitute for the annual tax return or the company\u2019s accounting file.<\/p>\n

A foreign director should also identify the correct service before sending a correction. The SIE shown in the professional account may differ from the office that handled the company\u2019s incorporation. A group falling within the DGE may have a dedicated contact. The company\u2019s registered office in Paris or elsewhere in \u00cele-de-France does not, by itself, identify every competent tax service. The message should reproduce the exact service name, the SIREN number, meaning the nine-digit French company identification number, the financial year and the statement number.<\/p>\n

A short pre-deadline file should contain at least the latest n\u00b0 2571 displayed, the last n\u00b0 2065 and tax computation, the year-end resolution, evidence of a recent incorporation or change of tax regime, the record of every advance already paid, the company\u2019s bank mandate, the bank account details known in France, and the identity of the person authorised to act in the professional tax account. A French company extract, commonly called a Kbis<\/em>, meaning the official extract from the commercial register, can help identify the registered company, but a Kbis does not prove that an advance has been paid and does not replace the tax calculation.<\/p>\n

B. How should the company calculate the IS advance, reduced rate and social contribution?<\/h3>\n

The ordinary calculation starts with the IS arising from the last closed financial year. In practice, the first advance may initially use the previous reference period and then be adjusted when the last result is available. The DGFiP explanation of result taxation and IS payment<\/a> states that the four advances are normally each one quarter of the IS paid on the previous year\u2019s profits, while also explaining the special treatment of a reference year that is not twelve months. A foreign-owned company must therefore preserve the underlying tax computation, not only the amount that appeared in the online account.<\/p>\n

Article 219 of the CGI fixes the normal rate. Its current text says, exactly: Le taux normal de l’imp\u00f4t est fix\u00e9 \u00e0 25 %.<\/q> The current article 219 of the CGI<\/a> also separates certain long-term gains and other categories of result. The rate calculation is therefore not always \u201clast year\u2019s tax divided by four.\u201d The company must identify the taxable base, the rate applicable to each component, the period length and any group rules before calculating the total reference tax.<\/p>\n

The 15% reduced rate may apply to a qualifying small or medium-sized company on the first \u20ac42,500 of profit, subject to the statutory conditions. The DGFiP describes the conditions as including a turnover below \u20ac10 million, fully paid-up capital and at least 75% ownership by individuals or by a company meeting the same conditions. A foreign-owned subsidiary should not assume that the reduced rate applies merely because the French entity is small. The ownership chain, the capital payment, the group relationship and the taxable profit must be documented. If the group\u2019s turnover changes the analysis, the French company should keep a group chart and the figures used for the threshold.<\/p>\n

An example makes the sequence clearer. Suppose a French subsidiary\u2019s reference IS is \u20ac40,000, calculated from \u20ac20,000 of qualifying profit at 15% and \u20ac70,000 of other taxable profit at 25%. The reference tax is \u20ac20,500, not \u20ac40,000 and not a mechanical application of one rate. If the company has four ordinary advances and no adjustment, the indicative quarterly amount is \u20ac5,125. If the 15 September payment is the third advance, the company must still check whether the first advance used an earlier reference period and whether the second advance regularised it. The example is only a method; the tax return, credits, group status and contribution must be reviewed in the real file.<\/p>\n

Credits and reductions require particular care. Article 1668 allows a company to stop new advances when the advances already paid are equal to or greater than the total IS it expects to owe for the current period before tax credits are deducted. An expected research credit or foreign tax credit is not automatically a reason to reduce an advance to zero. The company should calculate the gross IS, compare it with the advances already paid and then analyse the legal timing and conditions of each credit. A tax credit that is available only when the final return is filed should not be treated as cash already paid into the tax account.<\/p>\n

Losses, provisions and exceptional transactions must also be treated as tax items rather than as accounting labels. A foreign parent may see a loss in consolidated accounts while the French subsidiary has a taxable profit after add-backs. Conversely, a French company may have a significant accounting loss whose tax effect is limited by a non-deductible expense, a deferred deduction or a different treatment of a capital gain. The calculation file should show the accounting result, the tax adjustments, the taxable result, each rate, the resulting IS and the advances already paid.<\/p>\n

The social contribution on IS is a separate calculation. Article 235 ter ZC of the CGI applies a 3.3% contribution to the IS calculated on the relevant results, after an allowance that cannot exceed \u20ac763,000 for a twelve-month period. The same article provides a turnover exemption below \u20ac7,630,000, subject to its conditions concerning the capital and the ownership of the company. For a tax group, the parent company\u2019s turnover may be assessed by adding the turnover of the group members. The current article 235 ter ZC of the CGI<\/a> must be read before applying any threshold to a foreign-owned structure.<\/p>\n

Article 1668 D explains the payment sequence for that contribution. It states: Elle donne lieu au pr\u00e9alable \u00e0 quatre versements anticip\u00e9s<\/q>, and the full text of article 1668 D<\/a> provides that the contribution is collected like IS, with four anticipatory payments on the IS dates. Its calculation uses 3.3% of the relevant IS from the preceding period, reduced by the allowance under article 235 ter ZC. If the company\u2019s turnover or ownership excludes the contribution, it should keep the evidence and avoid paying an amount that belongs to another entity. If the contribution is due, it should be shown separately from the IS in the reconciliation.<\/p>\n

There is a practical reason to separate the two amounts on the n\u00b0 2571. A company can have correctly calculated IS but incorrectly added the social contribution; another can have correctly calculated the contribution but used the wrong group turnover. A reconciliation with one line for IS, one for the social contribution, one for each previous advance and one for any correction is easier for the SIE or DGE to verify. It also reduces the risk that a dispute about one component delays recognition of the other.<\/p>\n

The reference period must be annualised when it is not twelve months. A six-month first closing is not compared to a twelve-month result without adjustment. The company should identify the period covered, convert the relevant profit under the applicable tax guidance and then apply the rate rules. A foreign parent\u2019s 12-month management accounts are useful evidence but do not automatically replace the French statutory period. The French annual declaration under article 223 of the CGI remains connected to the French financial year and the result to be declared.<\/p>\n

Article 223 requires companies liable for IS to file the result declaration and contains a three-month rule after closing, with a special rule for a 31 December year-end. The text of article 223 of the CGI<\/a> should be checked when the company is planning the balance as well as the advances. A late annual declaration, an unrecorded change of year-end or an incorrect filing period can distort the advance calculation shown in the tax account.<\/p>\n

Large groups must not transpose the last-advance rule to every September payment. Article 1668 provides that the last advance cannot be below 95% of the estimated IS, less advances already paid, for companies with turnover between \u20ac250 million and \u20ac1 billion, and 98% for companies above \u20ac1 billion, subject to the statutory conditions. The calculation may use the combined turnover of a tax group. These minimums concern the last advance, not automatically the 15 September advance. A very large foreign group should identify which date is its last advance before applying the 95% or 98% calculation.<\/p>\n

The 2026 exceptional contribution for very large companies is another item that should not be confused with the ordinary 15 September advance. The 12 August 2026 BOFiP (Bulletin officiel des finances publiques-Imp\u00f4ts) notice on the exceptional contribution<\/a> describes a separate regime and a threshold changed by the 2026 Finance Law. It is relevant only to companies meeting that regime\u2019s conditions. It does not make every foreign-owned French SME subject to a new September payment, and its payment date can follow the last IS advance rather than the third ordinary advance.<\/p>\n

Once the IS, social contribution, previous payments and any legally available adjustment have been reconciled, the company can determine the amount to place on the 15 September statement. The working paper should show the formula in a way that another person can reproduce: taxable result by category, rate, tax before credits, contribution calculation, previous advances, amount due for the current advance and any reason for an increase or reduction. The final amount should be rounded as required by the tax form and should match the payment instruction.<\/p>\n

II. Incorrect, excessive or unaffordable French tax advance: how can the company correct or challenge it?<\/h2>\n

A. What should a foreign director do before 15 September if the result has fallen or the payment is rejected?<\/h3>\n

The first question is whether the statement has been validated. Before submission, the director or authorised accountant should reopen the calculation, confirm the period and rate, enter the corrected amount on n\u00b0 2571 and save the final electronic acknowledgement. The n\u00b0 2571 is an electronic tax document, not merely a bank instruction. The official 2026 n\u00b0 2571 guidance<\/a> should be retained with the calculation used on the day of submission.<\/p>\n

If the form has already been submitted but the deadline has not passed, the company should first check whether the professional account allows a correction. If the online route is closed, it should send a secure message to the SIE or DGE named in the account. The message should identify the company, SIREN, financial year, form number, amount filed, amount recalculated, reason for the difference and action requested. \u201cThe amount is wrong\u201d is not enough for a cross-border file. The calculation, the final balance sheet or interim trial balance, the prior payment record and the evidence of the change should be attached.<\/p>\n

A reduction because profits have fallen must be based on the expected taxable IS, not solely on a cash forecast. The company should update revenue, costs, payroll, depreciation, provisions, foreign exchange items, exceptional gains or losses and non-deductible expenses. It should then apply the applicable tax rates and the rules for the social contribution. An unpaid invoice may affect cash without reducing taxable turnover; a provision may reduce accounting profit without being deductible; a foreign-exchange gain may change the result even when the parent\u2019s reporting currency shows no movement.<\/p>\n

The evidence should be dated before the 15 September decision. Useful documents include monthly management accounts, a general ledger, a trial balance, a pipeline or order report, terminated contracts, payroll data, bank statements, the schedule of provisions, the tax adjustment file and a comparison with the last n\u00b0 2065. A foreign parent can provide group information, but the French director should also retain the French entity\u2019s own records. The purpose is not to predict the future perfectly; it is to show that the reduction was based on serious information available when the advance was reduced.<\/p>\n

Article 1668 contains a specific stop-payment possibility when the advances already paid for the period are equal to or greater than the total IS expected for that period before tax credits. That is different from a request to postpone payment because the company lacks cash. A director who has paid \u20ac20,000 of advances and expects a gross IS of \u20ac18,000 may have a legal basis to stop a later advance, subject to the full calculation. A director who expects \u20ac60,000 of gross IS but has only \u20ac20,000 of cash cannot describe the remaining \u20ac40,000 as a tax overpayment. The file must distinguish legal amount from financial capacity.<\/p>\n

The same distinction applies to a new company. If the company is within the first-period exemption, it should request correction of an incorrectly generated advance rather than pay and silently hope for a refund. The request should include the incorporation evidence, date of commencement, date of the IS option if relevant, first financial-year dates and the first return status. The registration of a company at the French commercial registry does not by itself prove the first taxable period, and the Kbis does not override the tax dates held by the DGFiP.<\/p>\n

A change of year-end creates another common error. The board may have approved a new closing date, but the tax account may still display the old sequence. The director should compare the corporate resolution, the amended filing, the French financial statements and the dates used by the tax software. A six-month or eighteen-month period must not be treated as a normal twelve-month period. If the change affects the first, second or third advance, the correction should explain the entire sequence, not only the payment due on 15 September.<\/p>\n

Payment is normally made electronically. Article 1681 septies of the CGI provides, in exact terms: Les paiements mentionn\u00e9s \u00e0 l’article 1668 sont effectu\u00e9s par t\u00e9l\u00e9r\u00e8glement.<\/q> The L\u00e9gifrance text containing article 1681 septies<\/a> sets out the electronic-payment rule. \u201cT\u00e9l\u00e9r\u00e8glement\u201d means an authorised electronic payment through the tax account; it is not the same as sending an unrequested bank transfer to a French account. The company should keep the statement acknowledgement, payment confirmation, debit record and any technical reference.<\/p>\n

For an overseas director, the bank process should be tested before the day of the deadline. The company should verify the bank mandate accepted by the professional tax account, the account balance, the authorised signatory, any two-factor authentication and the time zone used by the bank. A foreign bank account may not be eligible for the electronic mandate, and a French account may require a new mandate after a change of director. The bank\u2019s rejection message must be saved with the exact date and transaction reference. A screenshot of an attempted payment without a confirmation of acceptance is not conclusive proof that the tax was paid.<\/p>\n

If the first attempt is rejected, the company should check whether the amount was nevertheless debited before sending a second instruction. It should then identify whether the problem was insufficient funds, a revoked mandate, a bank limit, an invalid account, a technical error or a mismatch in the tax account. The SIE or DGE should be informed through the secure message system, with the rejection notice and the intended remedy. A second payment made without checking the first can create an overpayment and a separate reconciliation problem.<\/p>\n

When the amount is correct but cash is temporarily unavailable, the company should ask the tax service about a payment schedule. A payment schedule is not a reduction of IS and is not a legal challenge to the amount. It should be supported by a current cash-flow statement, outstanding receivables, creditor schedule, bank evidence and a plan showing how the company will meet the agreed instalments. The request should not be used to hide a calculation dispute. If both cash difficulty and a tax error exist, the request for time and the claim about the amount should be set out separately.<\/p>\n

Late payment can add cost. Article 1727 of the CGI provides that a late-paid tax debt bears late interest; its exact wording includes: qui n’a pas \u00e9t\u00e9 acquitt\u00e9e dans le d\u00e9lai l\u00e9gal donne lieu au versement d’un int\u00e9r\u00eat de retard<\/q>. The current article 1727 of the CGI<\/a> sets the late-interest rate at 0.20% per month and states how the period is calculated. Article 1731 adds the ordinary 5% late-payment surcharge in the situations covered by its first paragraph. The text of article 1731 of the CGI<\/a> also addresses an advance reduced by more than one tenth when the final liquidation later shows that the payment was inaccurate.<\/p>\n

The existence of a penalty is not decided by a slogan. The service must identify the legal nature of the amount, the payment date, the amount ultimately due, the applicable reduction rule and the reason for the difference. The company should not claim that every forecast error automatically produces the same surcharge, but it should not assume that a good-faith forecast prevents every consequence. The calculation made at the time of reduction, the information then available and the final return are essential evidence.<\/p>\n

A practical pre-deadline checklist for the foreign director is therefore short but strict:<\/p>\n