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CVAE: what can we expect in 2025?

Published on January 13, 2025 by Pierre Belhache - 3 mins reading time
SMALL BUSINESSES Companies Tax

As the Finance Act for 2025 has not yet been enacted, the rates applicable on January 1, 2025 are those defined by the Finance Act for 2024. The CVAE will nevertheless be phased out until 2027.

How the CVAE works

The Cotisation sur la valeur ajoutée des entreprises (CVAE) is a component of the Contribution économique territoriale (CET). It is payable by companies or individuals carrying on a business activity on January 1 of each year, subject to the cotisation foncière des entreprises (CFE), and generating sales of over €500,000 excluding tax, regardless of their legal status, activity or tax regime.

More precisely, the amount of the CVAE is obtained by multiplying the taxable added value by the CVAE rate. Except in special cases, a tax is added to the amount payable. This is collected by the regional chambers of commerce and industry and CCI France.

What are the CVAE tax rates in 2025-2026?

The applicable rates vary according to sales excluding tax (excluding VAT) for the year.

In 2025, they are set at :

  • 0% for sales of less than 500,000 euros net of tax
  • 0.063% x (sales - 500,000 euros) / 2.5 million euros for sales between 500,000 euros and 3 million euros net of tax
  • 0.063% + 0.113% x (sales - 3 million euros) / 7 million euros for sales of between 3 million and 10 million euros net of tax
  • 0.175% + 0.013% x (sales - 10 million euros) / 40 million euros for sales of between 10 million and 50 million euros net of tax
  • 0.19% for sales in excess of €50 million.

The additional CVAE tax rate will rise to 13.84% for 2025, from 9.23% in 2024.

Towards abolition of the CVAE by 2027

Article 79 of the Finance Act for 2024 amended Article 55 of the Finance Act for 2023, postponing to 2027 the total abolition of the CVAE originally scheduled for 2024. The tax rate will be gradually reduced over 3 years: 2024, 2025 and 2025.

Thus, in 2026, the CVAE tax rates will be as follows:

  • 0% for sales of less than 500,000 euros net of tax
  • 0.031% x (sales - 500,000 euros) / 2.5 million euros for sales between 500,000 euros and 3 million euros net of tax
  • 0.031% + 0.056% x (sales - 3 million euros) / 7 million euros for sales of between 3 million and 10 million euros net of tax
  • 0.087% + 0.006% x (sales - 10 million euros) / 40 million euros for sales of between 10 million and 50 million euros net of tax
  • 0.09% for sales over 50 million euros.

In 2027, the CVAE will be completely abolished.

CVAE payment terms

Until it is definitively abolished, the CVAE can be paid in a single instalment (télérèglement) if it is less than 1,500 euros from the company's pro account. Otherwise, two instalments must be paid (50% no later than June 15, and the second instalment no later than September 15).