France has published interest rates for entities whose financial year (FY) ended between 30 September and 30 December 2024, which are used to determine the deductibility of interest payments to shareholders.

The applicable rates from 30 September 2024 to 30 October 2024 is set at 5.93%, from October 2024 to 29 November 2024 at 5.90% and from 30 November 2024 to 30 December 2024 at 5.87%.

The Central Bank of France establishes the interest rates based on the average annual rates charged by financial institutions for medium-term variable rate loans with a duration of two years or more. If the interest payments exceed the aforementioned rates, that is generally not deductible unless evidence is provided to prove that the applied interest rate is at arm’s length.

Previously, France has released interest rates for entities with financial years ending between 31 December 2022, and 30 March 2023, to assess the deductibility of shareholder interest payments.