As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
13/01/2026
- VAT taxpayers carrying out intra-Community transactions: deadline for filling the declaration of trade in goods and the European declaration of services for transactions carried out in December.
15/01/2026 :
– Employers liable for payroll tax (companies exempt from VAT): payment of tax on salaries paid in December OR on salaries paid in 2025 for employers subject to annual declaration.
– Corporation tax balance: payment 2025 of the corporation tax balance for companies having closed their fiscal year on September 30, 2025.
– Annual Axle tax: between January 16 and 24: submission and payment of appendix 3310 A for taxpayers subject to the normal VAT system.
26/01/2026 :
Tax on company cars :
- For taxpayers subject to the normal VAT taxation system (monthly or quarterly) or not liable for VAT: the tax must be be declared on appendix n° 3310A to the VAT return to be filed during the month of January. Companies not liable for VAT have until January 25 to declare the tax on CO2 emissions;
- For taxpayers subject to the simplified VAT regime (annual declaration), the tax for 2025 must be declared on Form No. 3517, which must be submitted for the fiscal year during which the tax became due.
To help you determine the amount of these taxes, a calculation aid (form no. 2857-FC-SD) is available on the Ministry’s “impots.gouv.fr” website.
To know more…
The ECB keeps its key interest rates unchanged
On 18 December 2025, the European Central Bank decided to keep its three key interest rates unchanged. In its statement, it indicated that inflation should stabilise around the 2% target over the medium term. The Eurosystem’s macroeconomic projections published at the same time anticipate average inflation of 1.9% in 2026 (after 2.1% in 2025), then 1.8% in 2027, before returning to 2.0% in 2028. In early January 2026, the ECB’s communication, as reported in the economic press, pointed to a phase of stability: the institution considers that past monetary tightening is already producing its effects and that there is, at this stage, no reason to change interest rates as long as the scenario of inflation sustainably returning towards 2% is confirmed.
Social Security Financing Act 2026: key measures to be aware of
The 2026 Social Security Financing Act (Law n° 2025-1403 of December 30, 2025) introduces several measures that directly affect individuals, business creators, and in some cases, employers. Below is a structured summary focused on the points you have identified, with precise references.
Increase in the CSG on certain capital income
This is one of the most sensitive measures for investors: starting in 2026, the CSG rate applicable to certain types of capital income will increase. Specifically, the CSG will rise from 9.2% to 10.6% on many types of financial and investment income, bringing the total CSG-CRDS rate to 18.6% (up from 17.2%).
Which types of income are affected by the increase?
The following are primarily affected:
– Most financial income: dividends received by individuals, interest, and gains from income generated within a share savings plan (PEA).
As a result, the flat tax rate will rise from 30% to 31.4%.
– Income from non-professional furnished rentals (LMNP), when subject to standard social contributions.
Which types of income are not affected?
Why make things simple when they can be complicated? The law includes several exceptions. The following remain subject to the previous CSG rate (9.2%), and therefore to a CSG-CRDS rate of 17.2%:
- Rental income from unfurnished property
- Real estate capital gains from the sale of property
- Certain regulated or equivalent savings products: home savings plans, income from capitalization contracts, and life insurance policies.
Subsidiary health contribution (CSM): new funding rules for foreign nationals settling in France
The 2026 Social Security Financing Act introduces a measure specifically targeting certain non-EU foreign nationals who settle in France without engaging in any professional activity.
Until now, individuals legally residing in France could, under stable residency conditions, have their healthcare expenses covered by the national health insurance system, even without working. The 2026 law changes this approach by introducing a new mechanism.
From now on, for some individuals without professional activity, access to or continuation of healthcare coverage may be subject to a financial contribution. This rule primarily concerns:
- non-EU foreign nationals,
- holding a residence permit,
- residing in France,
- but neither working nor contributing to a social security scheme.
In practice, this measure mostly concerns individuals such as:
- those who move to France without intending to work (residence permit holders with “visitor” status),
- foreign retirees without a French pension,
- individuals living off investment income or foreign resources.
It is important to note that people engaged in professional activity in France are not affected: as soon as someone works and contributes (employee, self-employed, or registered company director), they are covered under the standard health insurance system and fall outside the scope of this measure.
The practical details (exact categories of persons concerned, the amount of the contribution, potential income thresholds) are yet to be specified by decree. Nonetheless, this measure marks a clear shift: access to health insurance is no longer automatic for individuals without employment, even if they are legally residing in France, and may now be subject to a specific contribution.
Additional birth leave: applicable to employees and self-employed workers
Employees are now entitled to an additional birth leave of one or two months, at their choice. This leave entails:
- suspension of the employment contract,
- payment of daily allowances by the social security system,
- enhanced protection against dismissal during the leave period (except in very limited cases).
For self-employed workers
The key development is the extension of this entitlement to self-employed workers. Provided they suspend or do not resume their activity during the relevant period, they may receive specific daily allowances linked to the birth or arrival of a child.
Increase in the contribution on severance payments under mutual termination agreements
The 2026 Social Security Financing Act increases the cost of mutual termination agreements by raising the specific employer contribution applicable to severance payments. The rate is now set at 40%, up from 30%.
It is essential to understand the circumstances in which this contribution applies, and the basis on which it is calculated:
When the employee is not yet eligible to claim a retirement pension, the severance payment under a mutual termination agreement is, within certain limits, exempt from social security contributions. In practice, this exemption applies to the portion of the payment equivalent to the legal or collectively agreed redundancy compensation.
It is precisely on this exempt portion that the specific employer contribution, now increased to 40%, is applied. In other words, what was previously considered a contribution relief has now become a significant social cost for the employer.
The portion of the severance payment exceeding the legal or conventional redundancy compensation is treated as regular salary and is therefore subject to standard social security contributions.
Conversely, when the employee is already eligible to retire (meets the conditions for drawing a pension), the severance payment is no longer exempt from social security contributions. In this case, the entire amount is subject to standard social charges, and the 40% specific contribution does not apply.
Reform of the ACRE scheme (social assistance for business creation or takeover)
As of 2026, the ACRE scheme has been refocused and is no longer automatic. First, eligibility criteria have been tightened: the aid is no longer available to all business creators but is now reserved for specific categories defined by law, such as certain jobseekers, RSA or ASS recipients, young people aged 18 to under 26, and certain individuals under 30 (notably those with disabilities).
Second, the social contribution relief has been significantly reduced. The exemption is granted for a period of 12 months, but its amount is capped: if professional income does not exceed 75% of the annual social security ceiling, the maximum exemption will be limited to 25% of contributions. Beyond that threshold, the relief is gradually reduced and is fully eliminated at 100% of the annual ceiling.
Finally, the process is no longer automatic: the request must be submitted to URSSAF at the time of business creation (via the certificate issued by the one-stop business registration portal).
The Team Roche & Cie
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