Often used by managers and partners of VSEs and SMEs to strengthen their company's cash flow without changing the capital structure, the associate current account is a flexible and effective internal financing lever. More, between tax opportunities and strict rules to respect, its use must be carefully supervised. Decryption by Bertrand Sers, tax partner Walter France.
In commercial companies (SARL, SAS, on), the partner current account allows a partner to lend funds to the company without going through a capital increase. This is an interesting solution, in particular to overcome a difficult milestone by strengthening cash flow or to facilitate obtaining bank financing. Unlike a capital increase, this mechanism has no dilutive effect : the distribution of capital remains unchanged, just like voting rights. So, a minority partner can financially support the company without obtaining more decision-making power.
Taxation applicable to the associate's current account
One of the main attractions of the associate current account lies in the possibility of remunerating it with interest.. This system has a double tax advantage. For society, interest paid is deductible from taxable profit within the limits of the ceilings published monthly by the tax administration (clear, this reduces corporate tax [IS] up to 25% of the amount of interest). For the associate, this interest is considered as income from movable capital. They are subject to flat tax of 30% (single flat-rate deduction), except option for the progressive scale of income tax if the latter proves more favorable.
Attractive remuneration
With the rise in interest rates since 2022, the remuneration of current accounts has become very attractive again. The tax administration regularly publishes the ceiling rates allowed to be deducted from the taxable results of companies.. For exemple, for a closing date of June 30, 2025, the ceiling rate is 5,32 %. This allows the partner to receive an attractive net income, while generating tax savings for society. Quick calculation based on an associate current account of 1,000 as of June 30, 2025 : the interest paid to the partner is 5,32 and therefore generates an immediate corporate tax saving of 1,33 (25% out of 5,32). The company pays on behalf of its partner a final tax of 1,67, and the latter then receives an income of 3,9 net of income tax, social security contributions and social charges. Or a fiscal and social cost, if we take into account the corporate tax savings generated upstream, 5% of income !
Blocking of the current account : a strategy to secure the company
One of the key features of the Associate Current Account is that funds can be withdrawn at any time. However, to secure the company's cash flow, it is possible to establish a blocking agreement over a given period. This agreement has two advantages. Visibility for the company : leaders know that these funds will not be required in the short term. Leverage effect with banks : a blocked current account can reassure financial institutions when applying for a loan.
An instrument to be favored over balance sheet bonuses and dividends
For associate directors, remunerating current account contributions can be more interesting than paying dividends or bonuses. Current account remuneration is not subject to social security contributions (unlike a bonus) for associate directors of SAS (and up to 10% of the share capital and the average partner's current account for the TNS associate manager of SARL). It allows a tax deduction for the company, which is not the case for dividends. The flat tax regime is generally more advantageous than the marginal taxation applicable to dividends or professional income.. This lever also works in SCIs subject to income tax (land income) : it makes it possible to favor flat-rate taxation at 12,8% on interest rather than the marginal household tax rate.
Special cases : abandon, inheritance and divorce
In case of financial difficulty, a partner can renounce his current account for the benefit of the company. This strong gesture constitutes an exceptional taxable product for the company. It is advisable to include a “return to better fortune” clause., allowing the partner to recover all or part of the sums if the situation of the company improves. This type of clause must appear in the off-balance sheet commitments in the accounting annex.. Other precautions to take : marital status can have unintended consequences. for example, in a married couple under the community regime, current account contributions are presumed to be common, even if one of the spouses provided the majority of the funds. Concretely, if Mr. has contributed 90% of the sums in the partner's current account and Mrs., 10 %, but they are associated 50/50, madame will be entitled to claim 50% of the total amount. In case of divorce, this can therefore lead to conflicts over the distribution of these sums. Finally, the partner current account must be included in the estate of its holder.
A device to be handled with rigor
The associate's current account is a extremely effective tool for financing your business without dilution, optimize your remuneration and benefit from tax advantages. But it also involves legal responsibilities, tax and property. Bad management, an interest rate that is too high or an oversight in off-balance sheet commitments can lead to tax adjustments or litigation. Support from an accountant is therefore strongly recommended to secure this leverage throughout the life of the company.. Pour Bertrand Sers, “the associate’s current account, often unknown or under-exploited, deserves the full attention of SME managers and partners, TPE ou SCI. As long as you master the rules and subtleties, it constitutes a real lever for financing and tax optimization, to be fully integrated into the company’s management and remuneration strategy. »
