Managing the taxation of this type of company can sometimes be complicated. Are you thinking of setting up your company under the legal status of a SASU, but would first like to know more about its taxation? Here, SeDomicilier explains how profits and dividends are taxed in the SASU, which can even help you in the creation of your company.
SASU: what do you need to know about taxing profits?
A société par actions simplifiées unipersonnelle (SASU) is considered a legal entity in its own right. For this reason, it is subject tocorporate income tax (IS). Profits are taxed in the company's name. The tax rate used to be progressive, but since 2023 it has been set at 25% for all companies, irrespective of their level of sales.
SMEs can also benefit from a reduced rate applicable to profits of up to 42,500 euros. Certain conditions must be met. Sales excluding VAT must be less than 10,000,000 euros. The share capital of the SASU must also be 75% owned by individuals.
You must declare the profits of your société par actions simplifiées unipersonnelle (SASU) to the tax authorities each year. The deadline for filing depends on the year in which you closed your financial year. In any case, the deadline is generally the second quarter of the year following the financial year.
You also have the option of choosing a simplified tax regime for your SASU. This allows you to deduct certain expenses, such as travel costs, depreciation, social security charges, etc. The simplified tax regime also allows you to reduce the tax base of the SASU and pay less corporation tax.
How dividends are taxed in a société par actions simplifiées unipersonnelle (SASU)
Unlike profits, SASU dividends are not subject to corporate income tax, since they correspond to a distribution of income already taxed at this level. Instead, they are subject to income tax (IR).
In reality, the taxation of dividends in a SASU depends on thetax option chosen by the company's sole shareholder or chairman. In particular, he or she can choose between the prélèvement forfaitaire unique (PFU - single flat-rate withholding tax) and the progressive tax scale.
Single-rate withholding tax (PFU)
Dividends received by SASU have been subject to a single flat-rate withholding tax (PFU) since 2018. The PFU rate is 30%, and includes:
- 12.8% for income tax,
- 17.2 for social security contributions.
The 30% single-rate withholding tax is paid at source by the SASU (société par actions simplifiées unipersonnelle) on each shareholder's share of dividends. As a result, shareholders no longer have to pay any additional tax on dividends received when declaring their annual income.
The progressive scale
The sole shareholder (individual) of a société par actions simplifiée unipersonnelle (simplified one-person company) may opt to havedividends taxed at the progressive income tax rate. If you choose this option, the dividends you receive will be added to the other income of your tax household.
They will then be subject to the progressive income tax scale, with a 40% allowance. The amount of tax payable on dividends will then depend on the marginal tax bracket of the sole shareholder of the SASU. If it exceeds the 12.8% advance, you pay the difference when you file your annual tax return. If the tax on dividends is lower than the advance payment, you can request a refund of the difference.
The 2023 tax rate scale applied to 2022 income is :
- 0% for amounts under 10,777 euros,
- 11% for amounts between 10,778 and 27,478 euros,
- 30% for amounts between 27,479 and 78,570 euros
- 41% for income between €78,571 and €168,994,
- 45% for income in excess of 168,994 euros.
The tax option chosen(PFU or progressive scale) is valid for the whole year, and cannot be changed during the year. It must be exercised when filing your tax return.
Written by our editorial expert
June 6, 2023
