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Case study · corporate treasury
Company cash: invest it without locking it up, and without making it go through your personal tax.
It earns no interest on the company's current account. If paid out as dividends, it loses 31.4% before being invested. In between, the company invests itself, subject to corporate tax, retaining what its business needs.
The case
€600,000 in the account of an SME.
A service-based SME has been generating more revenue than it spends for the past five years. €600,000 are sitting in the company's current account.
The manager planned to pay himself €400,000 in dividends to invest himself: €125,600 of a flat-rate levy before the first euro is invested.
€200,000 remains available for operations. The remaining €400,000 is invested. on behalf of the company, by time frame: a short-term portion, a 3-5 year portion, a long-term portion.
€400,000 at work instead of €274,400, taxed at corporate income tax on their earnings alone. The manager only pays himself what he spends.
The supports
What each person costs society in taxes.
| Support | Taxation in society | Availability |
|---|---|---|
| Fixed-term account | Interest subject to corporate income tax: 15% of taxable income up to €42,500 of profit, 25% of taxable income above that amount. | At the chosen deadline |
| Capitalisation contract | Gains are taxed annually on a flat-rate basis, even without redemption (Article 238 septies E of the French General Tax Code) | Buyback at any time |
| Private debt, bond funds | Interest and gains subject to corporate income tax | Depending on the duration of the fund |
| SCPI in the name of the company | Rents subject to corporate income tax; shares are taken into account in the partner's wealth tax, in proportion to their shares (article 965 of the French General Tax Code) | Resale of shares, depending on the market |
| Private equity | Gains from corporate income tax upon exiting the fund | Several years |
| Dividends received by a holding company | Share of 5 % imposed (parent-subsidiary regime) | Reinvested by the holding company |
The cash needed for the business is not invested in a long-term product: it is kept available, and what is in excess is invested.
To go further
The structures that go with it.
Frequently asked questions
What clients ask us.
Should the cash be withdrawn as dividends in order to be invested?
No. Dividends paid to you are subject to a flat-rate levy of 31.4% in 2026 (Article 200 A of the French General Tax Code). If invested by the company, the same amount earns its full amount, and only the gains are subject to corporate income tax.
Does cash flow fall under the IFI (French wealth tax)?
No for financial investments. Yes for buildings and SCPIs held by the company, in proportion to your shares, unless they are used for business purposes (article 965 of the CGI).
When does a holding company become useful?
When several companies generate cash, or when you are preparing a sale: the dividends it receives from a subsidiary held at least 5 % are taxed only on 5 % of their amount (articles 145 and 216 of the CGI).
