{"id":1287,"date":"2026-02-05T09:39:02","date_gmt":"2026-02-05T08:39:02","guid":{"rendered":"https:\/\/fiscalclear.com\/new-conditions-for-benefiting-from-the-reduced-rate-of-corporation-tax-as-from-the-2027-tax-year\/"},"modified":"2026-02-24T17:43:31","modified_gmt":"2026-02-24T16:43:31","slug":"new-conditions-for-benefiting-from-the-reduced-rate-of-corporation-tax-as-from-the-2027-tax-year","status":"publish","type":"post","link":"https:\/\/fiscalclear.com\/en\/new-conditions-for-benefiting-from-the-reduced-rate-of-corporation-tax-as-from-the-2027-tax-year\/","title":{"rendered":"New conditions for benefiting from the reduced rate of corporation tax as from the 2027 tax year"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">From the 2027 tax year (EI) &#8211; or for many companies from the 2026 accounting year (EC) &#8211; the conditions for access to the reduced rate of corporation tax are changing.<\/p>\n\n<p class=\"wp-block-paragraph\">While the principle of the preferential rate of<strong> <\/strong>20% on the first \u20ac100,000 of taxable profit has been maintained for SMEs, a recently passed bill has tightened certain requirements.<\/p>\n\n<h3 class=\"wp-block-heading\">Reminder of the current system<\/h3>\n\n<p class=\"wp-block-paragraph\">To qualify for the reduced rate, the company must :<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Qualify as an SME<\/li>\n\n\n\n<li>Not to be a finance company<\/li>\n\n\n\n<li>Be more than 50% owned by individuals<\/li>\n\n\n\n<li>Provide adequate compensation for at least one executive<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">From AR 2027 onwards, two important modifications are added or adapted.<\/p>\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n<h2 class=\"wp-block-heading\">1. Increase in minimum executive compensation<\/h2>\n\n<p class=\"wp-block-paragraph\">Until now, a minimum annual remuneration of <strong>\u20ac45,000<\/strong> was required.<\/p>\n\n<p class=\"wp-block-paragraph\">This amount is increased to <strong>\u20ac50,000<\/strong>, with <strong>automatic annual indexation<\/strong>.<\/p>\n\n<p class=\"wp-block-paragraph\">However, this increase does not apply in two situations:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>when the company already awards at least \u20ac50,000 in compensation to an executive ;<\/li>\n\n\n\n<li>when taxable profit is less than \u20ac50,000: in this case, remuneration equivalent to the profit remains sufficient, as before.<\/li>\n<\/ul>\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n<h2 class=\"wp-block-heading\">2. Introduction of a ceiling for benefits of any kind (ATN)<\/h2>\n\n<p class=\"wp-block-paragraph\">A new condition appears from AR 2027.<\/p>\n\n<p class=\"wp-block-paragraph\">From now on, the company will lose entitlement to the reduced rate if the benefits of any kind, assessed on a flat-rate basis, exceed <strong>20% of the total remuneration paid to executives<\/strong> during the financial year.<\/p>\n\n<p class=\"wp-block-paragraph\">These include<\/p>\n\n<ul class=\"wp-block-list\">\n<li>the company car<\/li>\n\n\n\n<li>provision of accommodation<\/li>\n\n\n\n<li>heating and electricity costs<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Benefits not valued on a flat-rate basis (such as social security contributions paid by the company) are not included in this calculation.<\/p>\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n<h2 class=\"wp-block-heading\">Things to remember<\/h2>\n\n<ul class=\"wp-block-list\">\n<li>  The reduced rate of 20% remains applicable on the first \u20ac100,000 of profits<\/li>\n\n\n\n<li>  Minimum remuneration increased to \u20ac50,000 (indexed)<\/li>\n\n\n\n<li>  Flat-rate NTDs may no longer exceed 20% of remuneration<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">  These new rules must already be incorporated into the planning for the 2026 financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From the 2027 tax year (EI) &#8211; or for many companies from the 2026 accounting year (EC) &#8211; the conditions for access to the reduced rate of corporation tax are changing. While the principle of the preferential rate of 20% on the first \u20ac100,000 of taxable profit has been maintained for SMEs, a recently passed [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1287","post","type-post","status-publish","format-standard","hentry","category-non-classifiee"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/comments?post=1287"}],"version-history":[{"count":1,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1287\/revisions"}],"predecessor-version":[{"id":1288,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/posts\/1287\/revisions\/1288"}],"wp:attachment":[{"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/media?parent=1287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/categories?post=1287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fiscalclear.com\/en\/wp-json\/wp\/v2\/tags?post=1287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}