Month: January 2025

Choosing the Right Tax and Social Regime for Your Non-Commercial Profits (BNC) When you start a professional activity or seek to optimize your situation, it is essential to choose a tax and social regime suited to your needs. Here are the three main options available to you: The Micro-BNC Regime The micro-BNC regime (Non-Commercial Profits) is aimed at self-employed professionals with moderate annual revenue. Revenue Ceiling: €77,700 excluding VAT per year. Exceeding this threshold for two consecutive years results in exit from this regime. Advantages: Simplified accounting. Flat-rate expense evaluation with a 34% tax deduction on turnover (only for income tax). Favorable social contribution rates: 24.6% for those not affiliated with CIPAV. 23.2% for those affiliated with CIPAV. Withholding tax: Income tax paid directly through social contributions. Overall rate: 26.8% (non-CIPAV) or 25.4% (CIPAV). Available based on income conditions. This regime is particularly suitable if your professional expenses are low and your turnover remains below the threshold. The Controlled Declaration Regime If your revenue exceeds €77,700 excluding VAT for two consecutive years, the controlled declaration regime becomes mandatory. Advantages: Ability to deduct actual expenses, including social contributions. Cash accounting method, providing management tailored to cash flow. Taxation and social contributions: Net profit serves as the basis for income tax (IRPP) and social contributions. This regime is recommended if your actual expenses, including contributions, exceed the 34% flat-rate deduction offered by the micro-BNC. The Sole Proprietorship with Corporate Tax (EI at IS) This regime allows a sole proprietor to opt for corporate taxation (IS) while maintaining the legal structure of a sole proprietorship. Accounting: Based on the accrual principle, meaning that revenues and expenses are recorded when they occur. Taxation: Profits are taxed at the IS: 15% up to €42,500. 25% beyond that. The entrepreneur’s salary can be freely paid and is deductible. This salary is the basis for social contributions and income tax. This regime is ideal for those who wish to separate their personal income from business profits, especially for investment or tax optimization purposes. How to Choose the Right Regime? Micro-BNC: Prefer this regime for low expenses and revenue under €77,700 excluding VAT. Controlled Declaration: If your actual expenses are significant, this regime becomes more advantageous. EI at IS: Ideal for reinvesting profits or optimizing personal tax liability. To go further, you may also consider setting up an operating company coupled with a holding company. This structure enables better management of your investments and increased tax optimization. Need help choosing the regime best suited to your situation? Contact our GAMEIRO firm, specializing in supporting entrepreneurs, for personalized advice.

When you run a commercial, industrial, or craft activity, choosing the right tax and social regime is crucial to optimize your management and obligations. Here are the three main options available for income subject to Industrial and Commercial Profits (BIC). The Micro-BIC Regime This micro regime is aimed at sole proprietors with a moderate turnover. Revenue Ceiling: €188,700 excluding VAT for sales of goods, catering, or accommodation. €77,700 excluding VAT for services. €15,000 excluding VAT for non-classified furnished tourist rentals. Exceeding these thresholds for two consecutive years results in the exit from this regime. Advantages: Ultra-simplified accounting. Flat-rate expense evaluation: 71% deduction for sales activities. 50% deduction for service activities. 30% deduction for non-classified furnished tourist rentals. Preferential social contribution rates: 12.3% for sales activities. 21.2% for service activities. Withholding tax: Allows income tax to be paid directly along with social contributions. 1% for sales activities. 1.7% for service activities. 6% for furnished tourist rentals. Eligibility conditions based on the household’s taxable income. This regime is ideal if your expenses are low and your turnover remains below the fixed thresholds. The Real Regime Mandatory if you exceed the micro-BIC thresholds for two consecutive years, this regime is suitable for entrepreneurs with significant expenses. Advantages: Deduction of actual expenses, including social contributions, operating costs, depreciation, etc. Accounting management adapted to cash flow (income and expenses). Taxation and social contributions: The taxable profit is determined after deducting actual expenses. The profit is the basis for calculating income tax (IRPP) and social contributions. This regime is recommended for businesses with significant expenses or complex expense management. The Sole Proprietorship with Corporate Tax (EI at IS) This regime allows the sole proprietor to opt for corporate tax (IS) while maintaining the legal structure of a sole proprietorship. Accounting: Based on the accrual principle (revenues and expenses are recognized when they occur). Taxation: Tax rates: 15% on profits up to €42,500. 25% beyond. The entrepreneur’s salary is: Flexible, subject to social contributions and income tax. Deductible from taxable profit. This regime is suitable if you want to reinvest profits into the business or optimize your personal tax liability. How to Choose the Right Regime? Micro-BIC: Suitable for low expenses and limited turnover. Simplified real regime: Ideal for deducting significant actual expenses. EI at IS: Recommended if you want to separate your personal income from business profits. To go further, consider setting up an operating company with a holding company to maximize your investments and tax optimization. Need help choosing the right regime for your business? Contact our GAMEIRO firm, experts in accounting and tax management, for personalized advice.

Which VAT Scheme to Choose: The 3 VAT Schemes for Any Business Structure As a micro-entrepreneur, sole proprietor, or company director, understanding the VAT schemes applicable to your activity is essential. Here’s an overview of the three main VAT schemes in France. 1. The VAT Exemption Scheme This scheme allows you to be exempt from VAT. In return, you cannot charge VAT to your customers or deduct it on your business purchases. This regime is ideal for small businesses looking to simplify their administrative processes. Application thresholds (2023 – 2025): Activities Annual Threshold (CA N-1) Tolerance Threshold (CA N-1 if CA N-2 < threshold) Goods delivery, on-site sales €91,900 €101,000 Services €36,800 €39,100 Lawyers, authors, performing artists €47,700 €58,600 Other legal and artistic activities €19,600 €23,700 Rules in case of threshold exceedance: Threshold exceeded: Obligation to collect VAT starting the following year. Tolerance threshold exceeded: Obligation to collect VAT starting from the invoice that exceeds the threshold. Specific obligations: Mandatory mention on invoices: “VAT not applicable, article 293 B of the French General Tax Code (CGI).” Certain activities are excluded from benefiting from this scheme. 2. The Simplified Real VAT Scheme This scheme targets businesses with moderate turnover who wish to avoid the constraints of the normal VAT regime while collecting and deducting VAT. Eligibility conditions: Annual turnover: Between €91,900 and €840,000 for goods, on-site sales, and accommodations. Between €36,800 and €254,000 for services. Annual VAT owed: Less than €15,000. Obligations: Semi-annual installments: July: 55% of the VAT owed for the previous year. December: 40% of the VAT owed for the previous year. Payment via form n° 3514 and telepayment. Annual declaration: Teletransmission of form n° 3517-S after the fiscal year ends. This scheme offers a balance between flexibility and fiscal responsibility but carries a risk: if turnover increases significantly compared to year N-1, the business may face cash flow issues when paying the VAT balance. 3. The Standard VAT Scheme This scheme is available to all businesses, regardless of their turnover. It is often chosen by businesses with significant activity or regular VAT deduction needs. Obligations: Monthly declaration: VAT collected must be declared and paid monthly online. Optional quarterly periodicity: Possible if the annual VAT owed is less than €4,000. This scheme requires rigorous management but provides optimal responsiveness in VAT management. Conclusion Choosing the right VAT scheme is crucial for optimizing your business management. Each scheme offers advantages and constraints suited to different business profiles. Need personalized support? Our accounting firm is available to advise you on the VAT scheme best suited to your situation. Don’t hesitate to contact us for an appointment.

Understanding Essential Accounting Documents: A Strategic Lever for Your Business Optimal management relies on a deep understanding of key accounting documents. These tools, far more than mere legal obligations, are invaluable allies for anticipating risks, steering your activities, and making informed decisions. In this article, discover the five essential accounting documents every business leader must know and understand. 1. The Balance Sheet: Reflecting Your Assets The balance sheet is a snapshot of your company’s financial situation at a given moment. It is divided into two parts: Assets, which encompass what you own (e.g., premises, equipment, or cash flow). Liabilities, which list your debts and financial commitments. Example: Assets: Premises purchased for €100,000 and cash flow of €10,000, totaling €110,000. Liabilities: Loan outstanding of €40,000 and supplier debt of €10,000, totaling €50,000. Your net assets (or equity) therefore amount to €60,000 (assets – liabilities). This document is essential for assessing the overall financial health of your business. 2. The Income Statement: The Key to Assessing Profitability The income statement analyzes your performance over a given period by comparing your revenue to your expenses. It indicates whether your business is profitable or operating at a loss. Example: Revenue: €200,000. Expenses: €170,000. Profit: €30,000, which will be included in the equity section of your balance sheet. With this document, you can identify ways to improve profitability. 3. The Appendices: Indispensable Insights The appendices provide essential clarifications about the key figures in the balance sheet and income statement, as well as the accounting methods used. They allow your partners or investors to better understand your financial statements. 4. Accounting Books: Your Financial Memory These documents include all the accounting entries of your company, such as: The Journal, which records each transaction chronologically. The General Ledger, which details the movements of each account. The Inventory Book, which lists your assets and liabilities. They ensure the traceability of your financial operations and facilitate internal or external audits. 5. The Tax Package: A Regulatory Obligation The tax package summarizes your annual results (balance sheet, income statement, appendices) and is submitted to the tax authorities. This document is mandatory for all companies. Strategic Tools for Management and Growth Beyond their legal function, these documents provide a solid foundation to: Anticipate financial risks. Monitor the evolution of your activities. Develop tailored growth strategies. Need Personalized Support? Our firm offers custom financial reporting services, whether monthly, quarterly, or ad hoc. Together, we can help you analyze your accounting data and effectively manage your business. Contact us today to discuss your specific needs.