As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
12/02/2026
Companies subject to VAT :
Deadline for :
- the European service declaration (DES) for intra-Community transactions carried out in January 2026.
- the VAT recapitulative statement (ex DEB) for intra-Community transactions carried out in January 2026.
17/02/2026
- Payroll tax :
For monthly taxpayers: deadline for electronic payment of tax on salaries paid in January, using the provisional payment statement no. 2501.
- Companies subject to corporate income tax :
Deadline for electronic payment of balance of corporation tax for fiscal years ending October 31, 2025.
- IFU (Imprimé Fiscal Unique) :
Deadline for filing IFU tax returns covering all income from investments and securities transactions in the previous calendar year.
- Tax payable by employers of foreign workers
Declaration and payment of this annual tax on appendix 3310 A of the VAT return.
28/02/2026
- Contractual Contributions to Continuing Professional Training
Contribution owed by certain companies according to collective agreements.
The rate varies depending on the applicable collective agreement, the average workforce in 2025, and is applied to the 2025 gross salary.
To know more…
ECB: rates on hold, euro strengthens
On 5 February 2026, the European Central Bank kept its interest rates unchanged (deposit facility rate at 2%). In practical terms, borrowing costs remain high, but they are not rising further for now—sending a stabilisation signal after the recent cycle of rate increases. In the wake of the decision, the euro strengthened against the dollar, as investors judged that the ECB is likely to remain cautious before considering any cuts. For the property market, this could support a modest return in confidence, even though many are still waiting for a clear decline in rates. The ECB nevertheless warns that the outlook remains uncertain, “in particular due to uncertainties surrounding global trade policies and geopolitical tensions.”
Support for apprenticeships: now limited to apprentices working towards qualifications up to baccalaureate level
For contracts signed from 1 January 2026, companies with fewer than 250 employees that hire an apprentice preparing for a qualification up to baccalaureate level are eligible for a flat-rate grant capped at €5,000 for the first year of the contract. This support is increased to €6,000 when the apprentice has a disability. Restricting the scheme based on the level of qualification signals a clear step back by the State from its previous commitment to work-study programs.
In addition, the €500 grant previously paid to work-study students to help finance their driving licence has also been removed under the 2026 Finance Act.
Sick leave: employers free to set notification rules in internal regulations
The French Court of Cassation has recently provided an important clarification for employers regarding absences due to sick leave. In a recent decision, it confirmed that employers are free to define, through their internal regulations, the procedures for notifying and justifying absences, in order to ensure the smooth operation of the business.
In the case at issue, an employee had been sanctioned for failing to comply with internal rules requiring the employer to be informed of sick leave within a specified timeframe. The employee challenged the validity of the sanctions, arguing that they were unlawful. The judges rejected this argument. The Court of Cassation reiterated that an employer may legitimately set precise rules governing how and when an employee must notify the employer of an absence, including in the event of sick leave.
However, this freedom is not without limits. The rules set out in the internal regulations must remain proportionate and must not lead to automatic sanctions. In the event of non-compliance, the employer must always assess the situation on a case-by-case basis and demonstrate the actual impact of the absence on work organisation.
This decision sends a strong signal to employers: a well-drafted set of internal regulations can help secure the management of absences, provided that a fair balance is struck between business organisation and respect for employees’ rights.
Court of Cassation, Social Chamber, 14 January 2026, No. 24-17.480 FS-B, Euro Disney Company
Employee micro-business: a competing activity, even marginal, remains prohibited
The French Court of Cassation has recently provided important clarification on the combination of salaried employment with a self-employed activity carried out under micro-business status. The decision strengthens employer protection in situations involving competition, including where the employee’s independent activity is limited in scope or carried out outside working hours.
In the case at hand, an employee was simultaneously operating an activity in the same sector as that of his employer. In his defense, he argued that the activity was ancillary, carried out outside working hours, without using the company’s equipment and in the absence of an exclusivity clause in his employment contract. The Court of Cassation rejected all of these arguments.
The judges reaffirmed a clear principle: any activity carried out by an employee in the same field of activity as that of the employer is, by its very nature, competitive. It is irrelevant whether the activity is residual, marginal or pursued on a secondary basis. It is also irrelevant that it is carried out outside working hours and without using the company’s resources. As soon as the activity falls within the same sector, it breaches the employee’s duty of loyalty.
This decision sends a strong signal to employers. It confirms that they may lawfully sanction an employee whose independent activity encroaches, even to a limited extent, on their own business. It also calls for increased vigilance regarding dual-ituation arrangements and for appropriate contractual safeguards.
Court of Cassation, Social Chamber, 14 January 2026, No. 24-20.799 F-D, Optibois Company
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