Company Taxation

Taxation system’s every plan has its own reporting obligations.

1. Micro-régime scheme

Annual turnover limit: Except in the case of exclusions linked to certain activities, the microenterprise scheme automatically applies to companies whose turnover excluding VAT, adjusted pro rata if necessary, does not exceed certain limits. Since the 2024 income tax, these thresholds have been set at:

• 188,700 € for the purchase/resale and supply of accommodation activities.
• 77,700 for other services, furnished rental companies and the liberal professions covered by the BNCs (Les bénéfices non commerciaux) which means

BNCs is Non-commercial Profit. BNCs is a category of income tax applicable to persons engaged in non-commercial professional activities, either as individuals or as associates. They are part of the taxable income. No distinction is made between the profit of the sole proprietorship and the remuneration of the professional. They are subject to reporting obligations that depend on the applicable tax regime:  micro BNC or normal.

Specific rules for assessing these thresholds apply in the event of multiple commercial and non-commercial activities within the same company.

These thresholds are no longer aligned with those of the VAT-based exemption. A company can therefore benefit from the micro-BIC or micro-BNC scheme without being obliged to fall under the VAT-based exemption scheme.

Bénéfices industriels et commerciaux (BIC) stands for Industrial and commercial profits. The profits made by natural persons who carry on a commercial, industrial or craft activity (individual or associated operators of certain partnerships). They are part of the taxable income and are subject to reporting obligations that depend on the applicable tax system: micro BIC, simplified real or normal real.

• Flat-rate valuation of taxable profit:  Companies subject to the microenterprise regime are exempt from the requirement to prepare a specific declaration of results. Taxable profit is determined on a flat-rate basis by the tax authorities.
• Reduced accounting requirements: Companies placed under this scheme may not draw up annual accounts but they must be able to submit to the tax authorities a revenue journal and, only if they are engaged in the sale of goods, an annual purchase register. They are exempted from having to prepare an annex to their annual accounts.

2. Simplified tax regime (RSI– Régime simplifié d’imposition)