News alert: SELARL and partners’ remuneration

In a decision of 8 April 2025, the Conseil d’État (France’s highest administrative court) partially struck down the tax authorities’ guidelines on the taxation of the remuneration of managers (gérants) of SELARLs and SELCAs (companies through which the regulated liberal professions are practised).

The Conseil National des Barreaux (the national body representing the French legal profession) had brought an action against the administrative guidelines published by the tax authorities in December 2023 on the distinction between remuneration for the role of manager and remuneration for practising the liberal professional activity.

Key takeaways:
– the distinction between management remuneration (taxed as wages and salaries) and professional remuneration (taxed as non-commercial profits, BNC) is upheld;
– the 5% rule of thumb for management remuneration is annulled;
– certain administrative tasks cannot be regarded as inherent in the liberal professional activity (invoicing, scheduling appointments…) and must therefore fall within the “management” portion.

It should be remembered that a strict interpretation of the law means that partners in SARLs are not subject to this rule… Our clients, who are well advised and structured in this form, can therefore rest easy 👌

This issue is bound to generate a great deal of litigation… so watch this space!