Each year, companies subject to corporation tax pay off this tax calculated on the basis of their taxable income. In case of large profit, corporation tax can be high as it reaches one third of the tax profit of the company.

The Tips for You

Several tips can help reduce the corporation tax payable by the company, in particular by creating new payloads and using advantageous tax measure. As we will also see, the accountant has a major role in helping the entrepreneur to reduce corporate tax in compliance with the legislation.

Finally, it is necessary to remember that any tax credit or additional deduction, in order to reduce corporate tax, first involves new expenses.

Tips and Tricks to Reduce Corporate Tax

Inspect the possibilities of deduction with your accountant

The first reflex of the manager must be to consult his chartered accountant to study, before the end of the financial year, the possibilities of optimization. Several points need to be addressed, including:

Among all the charges incurred, which ones can be deducted from the tax result?

When several valuation methods exist, which ones allow the best tax deduction?

Are there specific tax treatments, in particular allowing a higher deduction than that recorded in the accounts, for the expenses that have been incurred? It may for example be the implementation of declining balance. Make use of the tax calculator also there.

  • The cinema tax credit benefits companies subject to corporate tax which have a delegated production activity and relates to production expenses for cinematographic and audiovisual works.

Cinema tax credit

Companies and works eligible for the cinema tax credit

Film production companies and audiovisual production companies subject to corporation tax which assume the functions of delegated production companies can benefit from the cinema tax credit.

This tax credit is calculated on eligible expenses (see below) linked to the production of a cinematographic or audiovisual work belonging to the genres of fiction, documentary and animation, and which meets the following conditions:

  • be eligible for financial support for cinematographic or audiovisual production,
  • and be carried out mainly on French territory.

The condition relating to the production of the work in French or in a regional language in use in France was removed by the 2016 finance law . From now on, animated cinematographic works, works of fiction assimilated to animated works and cinematographic works with a strong cultural dimension produced in a foreign language may also be eligible.