This article is intended for companies subject to corporate income tax whose registered office is located in France.
1. How to record gains generated by the Regular account in the accounts
Gains from this financial investment must be recorded as financial income in the company's accounts, accounts 76. They are generally recorded in account 762 – Other financial assets.
2. When is interest subject to corporate income tax ("Impôt sur les sociétés") in France?
Regular does not withhold any tax at source on the interest generated.
Interest is subject to corporate income tax (IS) as soon as it is “accrued,” even if it has not yet been actually received at the end of the fiscal year.
This means that all interest generated up to that date but not yet withdrawn from the Regular account must be included in the company's taxable income. These amounts are considered as income earned, thereby increasing the company's taxable base.
3. Applicable tax rate
Interest generated by the Regular account is included in the company's taxable income and subject to corporate income tax at the applicable rate.
In 2024, the applicable rate is 25%. A reduced rate of 15% is provided for SMEs for the portion of taxable income below €42,500.
4. Is the repayment of capital invested through the Regular account subject to corporate income tax?
No, the repayment of capital is not subject to corporate income tax. This repayment is considered a simple return of the amount initially invested, and not as income or a gain.
Only the interest generated by the Regular account is taxed as financial income.