The taxation of profits to the IR under the actual tax regime (for activities falling under the BIC) or under the controlled declaration regime (for activities falling under the BNC) consists, for the entrepreneur, in being personally taxed on IR on the professional profits actually made.
The taxable profit for IR results from the difference:
Between the income acquired and the expenditure incurred during the financial year for activities relating to the BICs,
Taxation of income tax under the micro-enterprise regime
The taxation of IR profits under the micro-enterprise regime (micro-BIC or micro-BNC depending on the activity carried out) consists, for the entrepreneur, in being personally taxed at IR on the calculated professional profits on a flat-rate basis.
Under this tax regime, actual expenses are not taken into account to calculate taxable profit. A standard allowance is applied to turnover to determine the amount of taxable profit.
The methods of taxing a company’s profits depend on the category to which its activity falls: industrial and commercial profits (BIC) or non-commercial profits (BNC). To help you understand which tax category your activity falls under, you can consult this file: BIC or BNC?
The taxation of profits from an activity falling under the BNC
Here are the different profit tax systems for activities that fall under the NCB:
- Imposition of income tax (IR) under the controlled declaration regime,
- Income tax (IR) imposition under the micro-BNC regime.
- The micro-BNC scheme is accessible on condition that you do not exceed the thresholds for the micro-enterprise scheme.
- Depending on the legal form of the business, it may be possible to opt for the taxation of profits to corporation tax.
The taxation of profits from an activity falling under the BIC
Here are the different profit tax systems for activities that fall under the BIC:
- Corporate income tax (IS),
- Imposition of income tax (IR) under a real tax regime,
- Taxation of income tax (IR) under the micro-BIC regime.
The legal form of the company then determines the possible tax systems. The micro-BIC scheme is accessible on condition that it does not exceed the thresholds for the micro-enterprise scheme. The Tax return estimator is important there.
The IR-PME tax reduction, also called the tax reduction, is a tax device that allows a taxpayer to benefit from an income tax reduction for subscriptions to initial capital or increases of SME capital.
What is the IR-PME tax reduction?
The IR-PME tax reduction, also known as the Madeline tax reduction, is a tax system allowing taxpayers who subscribe to the share capital of an unlisted SME to benefit from a reduction in their income tax.
The company receiving the contribution can be an operating company, a coordinating holding company or a non-coordinating holding company. Many conditions are provided for at the level of the company that receives the payments.
This tax reduction applies to subscriptions made to the initial share capital of a new company, or during an increase in share capital. The amount of the payment to be used for the calculation of the tax reduction is capped per calendar year.