Tax policy directorate – Bureau a

 
 
2 – Persons taxable optionally 
The following corporations can, barring exceptions, opt for corporation tax: partnerships, notably 
general partnerships, civil-law corporations (except for civil construction-sale companies), limited 
partnerships, joint ventures, healthcare partnerships (sociétés interprofessionnelles de soins 
ambulatoires, SISA), and EURL and private limited farm companies (EARL) when the single 
shareholder is a physical person.
This possibility has been extended to limited liability sole proprietorships (entreprises individuelles à 
responsabilité limitée, EIRL).
3 – The tax regime for other public or private organisations
 
Public bodies like government-funded institutions and private bodies like non-profit organisations and 
foundations are not liable to standard-rate ordinary law corporation tax provided that they do not 
conduct business for profit. 
Under special rules, such bodies are liable to corporation tax on certain income they derive from their 
assets (income from property, agricultural profits, certain investment income), which is not related to 
business for profit. The applicable rate is 10%, 15% or 24% for certain kinds of investment income, 
such as income from bonds.
Government-funded institutions, financially independent State bodies, local government bodies at 
département and commune level, and all other legal entities that operate a business or carry out 
operations for profit are liable to corporation tax under ordinary law conditions. 
However, a body that does not carry out business for profit but receives income from its assets is liable 
to corporation tax at the reduced rates stipulated by Article 206-5 CGI unless otherwise provided
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B. EXCLUSIONS OR EXEMPTIONS 
1 – Exclusions 
Certain legal entities, which would normally be liable to corporation tax due to their legal status or the 
nature of their activities, are excluded from corporation tax thanks to special legal provisions. These 
include: 
- The following non-corporate entities:
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Economic Interest Groups (GIE), European Economic Interest 
Groups (GEIE), Public Interest Groups (GIP), health and social/medical-social cooperation groups, joint 
forest management associations and syndicated forest groups 
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For example, scientific or educational government-funded institutions, government-funded institutions 
providing assistance, public interest foundations and endowment funds whose articles of association do not provide 
for the possibility of consuming their endowment in capital are not liable. 
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Conversely, each member of the aforementioned entities is personally liable to tax proportionally to the 
rights held in the group (either to income tax or to corporation tax in cases of legal entities liable to the latter). Public 
Interest Groups (GIP) and health and social/medical-social cooperation groups can opt for corporation tax. 

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- The following corporations: civil-law companies covered by Article 239 Quater A CGI, professional