The average balance of a partner’s current account (CCA) is not just another accounting indicator. It directly affects the deductibility of interest paid to the partner, and since the reform on dividends for majority managers of SARLs, it also determines the famous threshold beyond which dividends are subject to TNS social contributions. Despite this importance, no unique legal formula is imposed by the tax administration, which allows for divergent practices and risks of reassessment.
Method for calculating the daily average balance
The most reliable method, recommended by several accounting firms to withstand an URSSAF or tax audit, is based on a daily calculation. The principle: multiply each balance of the current account by the number of days that balance remained stable, then divide the total obtained by the total number of days in the fiscal year.
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Let’s take a concrete case. A partner has a credit CCA of 50,000 euros on January 1st. He withdraws 5,000 euros on May 28th, then receives interest of 2,705 euros on December 1st. The calculation breaks down as follows:
| Period | CCA Balance | Number of Days | Balance x Days |
|---|---|---|---|
| 01/01 to 27/05 | 50,000 | 147 | 7,350,000 |
| 28/05 to 30/11 | 45,000 | 187 | 8,415,000 |
| 01/12 to 31/12 | 47,705 | 31 | 1,478,855 |
The sum of the products gives 17,243,855. Divided by 365 days, we obtain an annual average balance of approximately 47,243 euros. This amount will serve as the basis for calculating deductible interest and, if applicable, the threshold for dividends subject to social contributions.
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For those who wish to delve deeper into the logic of this calculation step by step, it is possible to calculate the average balance of a current account on Investinor with numerical examples tailored to different SARL configurations.
Monthly then annual average balance: the simplified alternative
Some practitioners prefer a two-step approach, considered more readable for non-accounting managers. It involves first calculating a monthly average balance based on daily balances for each month, then averaging the twelve monthly results to obtain the annual average balance.
This method produces a slightly different result from the daily method over the full fiscal year, as it weighs each month equally (a February month counts as much as a March month, despite the difference in days). In practice, the difference remains marginal when movements on the CCA are infrequent.
The choice between the two approaches is not trivial. Feedback from specialized firms indicates that URSSAF and TNS funds increasingly require a documented and stable method from one fiscal year to the next. Changing methods mid-course, or using a “rough” calculation based on the average between the opening and closing balances, exposes one to reassessment.
Automating the average balance calculation with a spreadsheet
Creating an Excel or Google Sheets file dedicated to tracking the CCA remains the most accessible solution for small structures. The logic is simple:
- A date column, a movement column (positive for contributions, negative for withdrawals), a column for the cumulative balance recalculated automatically.
- A SUMPRODUCT formula that multiplies each balance by the corresponding number of days (the gap between two movement dates), then divides by the total number of days in the fiscal year.
- A summary tab that displays the monthly average balance and the annual average balance, with a visual alert if the balance becomes negative (which radically changes the tax treatment).
Accounting software like Pennylane now includes a partner current account module that automates this tracking. The advantage: each bank movement is linked to the correct partner in real-time, which avoids tedious reconstructions at the end of the fiscal year.
Credit or debit CCA: two opposing tax regimes
The tax administration strictly distinguishes between the two situations. A credit CCA (the partner has lent money to the company) entitles the partner to remuneration in the form of deductible interest, within the limit of the maximum tax rate published each quarter. A debit CCA (the partner has borrowed from the company) triggers a very different treatment, akin to a benefit in kind or a disguised distribution depending on the case.
The average balance serves as a pivot in both configurations. For a credit CCA, it determines the base on which to apply the interest rate. For a debit CCA, it can form the basis for reassessment if the administration considers that the amounts withdrawn have not been repaid within a reasonable timeframe.
Average balance of the CCA and TNS dividend threshold in SARL
Since 2013, dividends received by majority managers of SARLs and EURLs are subject to social contributions for the portion that exceeds 10% of the total formed by the share capital, issue premiums, and the average balance of the CCA. This threshold makes the calculation of the average balance directly strategic.
A partner who regularly funds their current account mechanically raises this 10% ceiling, allowing them to receive more dividends subject only to the flat tax rather than TNS social contributions. This is why the trade-off between increasing share capital and funding the CCA is one of the most common optimization levers in wealth management for SARLs.
The available data do not allow for setting a universal ratio between capital and CCA, as the optimum depends on the amount of dividends distributed, the level of remuneration of the manager, and the company’s investment policy. Support from an accountant remains the safest way to calibrate this distribution at each fiscal year-end.
Thus, the average balance of the CCA concentrates issues that go far beyond simple accounting: deductibility of interest, tax treatment of dividends, compliance during audits. Documenting the chosen method, maintaining it from one fiscal year to the next, and supporting it with daily tracking (even automated) constitutes the best protection against subsequent corrections.