Corporate Tax, Dividend vs Salary Remuneration Optimizer

Model executive compensation tradeoffs between payroll (pension, healthcare) and dividends (flat tax) to maximize net earnings.

Salary or dividends: how the tool weighs corporate tax and PFU

The tool compares what the manager of a French SASU or SARL actually keeps under three scenarios: all salary, all dividends, or a mix. Profit left in the company pays French corporate tax (15% up to €42,500, 25% above), then dividends are taxed at the 31.4% flat tax (PFU, 2026 rate) or, by option, at the progressive income tax scale.

How it is calculated

The starting point is the profit available before paying the manager. In the all-salary and mixed scenarios, salary costs the company gross × 1.42 in an SASU (president treated as an employee) and gross × 1.35 in an SARL or EURL (majority manager, self-employed status); net pay before tax is 78% of gross in an SASU and 75% in an SARL. Your marginal income tax rate (TMI) applies to the whole net salary. The remaining profit pays corporate tax, then dividends bear either the 31.4% PFU or the progressive scale: TMI on 60% of the amount (40% allowance) plus 18.6% social levies on 100%.

Worked example

Profit of €100,000, SASU, gross salary €45,000, TMI 30%, PFU. The salary costs €63,900. That leaves €36,100, which pays €5,415 of corporate tax, so €30,685 can be distributed. Net salary after tax: €24,570; net dividends: €21,050; total: €45,620. All dividends gives €54,366 (corporate tax €20,750), all salary €38,451.

Limits

  • Social charge factors are rough flat rates, the same for the all-salary and mixed scenarios.
  • In an SARL, the part of a majority manager's dividends above 10% of share capital, share premium and shareholder loans owes self-employed contributions; the tool still applies the PFU.
  • No 10% salary allowance, no deductible CSG, no family quotient, no legal reserve. Pension rights earned through salary are not valued.

This is an estimate and does not replace advice from a chartered accountant.

Sources and dates: French corporate tax under article 219 of the Code général des impôts: 15% reduced rate up to €42,500 of profit for financial years ending on or after 31 December 2022 (Finance Act for 2023, article 37), limited to companies with turnover up to €10 million and at least 75% held by individuals; standard rate 25%; both unchanged for 2026. Dividends: 31.4% PFU (12.8% income tax + 18.6% social levies) on income received from 1 January 2026, following the CSG increase in the 2026 Social Security Financing Act (law no. 2025-1403 of 30 December 2025, article 12); 30% before that. Majority managers' dividends: article L131-6 of the Code de la sécurité sociale. (checked 14/10/2026)

Frequently Asked Questions

What is the French flat tax rate on dividends in 2026?

31.4% on dividends received from 1 January 2026: 12.8% income tax plus 18.6% social levies. The rate was 30% up to 2025; the increase comes from a 1.4-point rise in CSG under the 2026 Social Security Financing Act. The simulator applies 31.4%.

Is it better to pay yourself a salary or dividends from an SASU?

For immediate take-home pay, dividends often win: with €100,000 of profit and a 30% marginal rate, the tool gives €54,366 with all dividends against €38,451 with all salary. Dividends, however, earn no pension quarters and no sick-pay cover. That is why many managers combine a salary with dividends.

How is French corporate tax calculated?

15% on the first €42,500 of profit and 25% above. For €100,000 of profit, corporate tax is €6,375 + €14,375 = €20,750. The reduced rate requires turnover of no more than €10 million and fully paid-up capital at least 75% held by individuals; the tool applies it without checking these conditions.

Do majority SARL managers pay social contributions on dividends?

Yes, on the part exceeding 10% of share capital, share premium and shareholder loan balances: that part bears self-employed contributions instead of social levies alone. The tool does not model this rule and applies the PFU to all dividends, which flatters the dividend scenario for an SARL or EURL.

Flat tax or progressive scale: when is the scale better?

Under the scale, your marginal rate applies to 60% of the dividends (40% allowance), plus 18.6% social levies on the full amount. At an 11% marginal rate the total burden is 25.2% versus 31.4% with the PFU; at 30% it rises to 36.6%. In this model, which ignores deductible CSG, the scale only pays off at a 0% or 11% marginal rate.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.