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The Taxation Submissions for the Business Managers

The business manager who works as a sole proprietorship is taxed on the professional profit he makes, in the category to which his activity falls (BIC or BNC). This file presents the terms of the income tax (IR) of the professional income of the individual entrepreneur, for holders of BIC (Industrial and Commercial Profits) or BNC (Non-Commercial Profits).

Individual entrepreneur income tax

The taxation of individual entrepreneurs in the micro regime

Micro-entrepreneurs are subject to personal income tax on a profit calculated on a flat-rate basis according to the revenue collected. An option is possible, under income conditions, to pay income tax directly and in full discharge.

The income tax system for individual entrepreneurs under the micro-enterprise regime depends on the professional activity carried out and the category to which the taxable profits fall.

Taxation of professionals at micro-BIC

Individual entrepreneurs who have opted for the micro-BIC regime are taxed on a lump sum corresponding to a percentage of the total amount of revenue collected over the year. Use the tax calculator for the proper result.

Their taxable income is equal to:

  • 71%  of revenue collected for professionals carrying out a sales or similar activity,
  • 50% of the receipts collected for professionals having another activity falling under the BIC.

Declaration of taxable income:

The micro-entrepreneur must declare the total amount of revenue collected over the year in declaration n ° 2042-C-PRO. A “professional industrial and commercial income” section containing a “micro-enterprise scheme” category is planned.

Taxation of professionals at the micro-BNC

Individual entrepreneurs who have opted for the micro-BNC scheme  are also taxed on a lump sum corresponding to a percentage of the total amount of revenue collected over the year.

Their taxable income is equal to 34% of the receipts collected.

Declaration of taxable income:

The micro-entrepreneur must declare the total amount of revenue collected over the year in declaration n ° 2042-C-PRO. A “professional non-commercial income” section containing a “special reporting regime or micro-BNC” category is planned.

Taxation of professionals opting for the final payment of the IR

When the professional’s tax household income for the penultimate year is less than or equal, for a part of the family quotient, to the upper limit of the second bracket of the income tax scale for the previous year, it can opt for the final payment of income tax . This limit is increased by 50% or 25% for each additional half or quarter share.

You can consult the scale using this link: Scale of IR

The income tax paid in the form of a discharge payment is equal to:

  • 1%  of the receipts collected for professionals carrying out a sales activity or similar,
  • 1.7% of the receipts collected for professionals with another activity falling under the BIC,
  • 2.2%  of the receipts collected for professionals falling under the BNC .

Declaration of taxable income:

Even if the income tax has been withheld at source, it is necessary to declare the total amount of revenue collected during the year in declaration n ° 2042-C-PRO. A section “auto-entrepreneur having opted for the tax payment in discharge of income tax” is provided.

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