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Industrial and Commercial Benefits (BIC): tax systems and reporting

Verified 01 janvier 2020 - Directorate for Legal and Administrative Information (Prime Minister)

Covid-19: exceptional measures to assist undertakings

Businesses and self-employed workers in difficulty during the period of the coronavirus epidemic can apply for the deferral or remission of payment of their maturities of certain taxes ..

It is possible to modulate payment of CVAE deposits ..

Companies in certain sectors may benefit from a CFE reduction..

Industrial and commercial profits (BICs) are the profits made by natural persons engaged in a commercial, industrial or craft activity (individual operators or partners of certain partnerships). They are part of taxable income and are subject to reporting obligations that depend on the applicable tax regime: micro BIC, real simplified or real normal.

Industrial and Commercial Benefits (BIC) are:

  • the benefits of the commercial, industrial or craft professions (sale of goods, objects, supplies, sale of goods to be taken or consumed on the spot, provision of accommodation, provision of services, etc.),
  • the benefits of commercial activities by assimilation: operations of property dealers, real estate rentals (renting of buildings for professional use, renting of housing premises furnished as usual), operations of certain public service delegates (awardees, concession holders or farmers of communal rights), laboratories for medical analysis, private educational institutions in particular,
  • income from ancillary activities.

Thus, the following persons fall into the BIC category:

  • Individual operator or contractor acting on his own behalf
  • Unique associate of a EURL
  • Partner of a partnership (for the share of profit corresponding to his rights in the results of the partnership): SNC, limited partnership, GIE, SARL having opted for the partnership tax system.

Regardless of the tax system, the entrepreneur must report his taxable and exempt income each year in the supplementary declaration of self-employed persons in respect of income n°2042 C pro attached to the specific declaration of its taxation scheme.

2019 income to be reported in 2020

The scheme depends on the level of annual gross turnover (turnover actually received).

Taxation schemes

Special BIC scheme (micro-enterprise or micro-BIC)

Simplified real-world regime

Normal Actual

Conditions for business activities and housing supply (hotels, bed and breakfast, rural cottages, furnished with tourism)

and leasing of materials or goods for sustainable consumption

Annual turnover excluding tax (CAHT) less than €170,000

CAHT between €170,000 and €818,000

CAHT greater than €818,000

Conditions for the provision of services under BIC

Annual turnover excluding tax (CAHT) less than €70,000

CAHT between €70,000 and €247,000

CAHT greater than €247,000

Determination of taxable profit

Automatic application of a lump-sum allowance for professional expenses of:

  • 71% from AC for buying-to-sell or providing accommodation
  • 50% from AC for service activities

with a minimum reduction of €305

Net income tax

Net income tax

Reportable income

Gross annual turnover (excluding VAT, without deduction) + any gains or losses realized

Net profit, if any, reprocessed without accounting + any gains or losses realized

Net profit, if any, reprocessed without accounting + any gains or losses realized

Tax returns

#2042 C Pro

(including in the case of an option for release (self-contractor)

Due

Monthly or quarterly reporting (optional)

Annual declaration on 2e next business day 1to May

Annual declaration on 2e next business day 1to May

A professional, subject to the BIC microphone, can opt for the tax-free payment.. In this case, the income tax is 1% turnover for the sale of goods or accommodation or catering services, and 1.7% turnover for the provision of services.

BICs are included in the taxable income of the tax household, which takes into account the total amount of BICs: the automatic lump-sum deduction 10% representative of professional expenses, valid for salaries, is not applicable to the profits of professionals.

In case of doubt, the contractor may request administrative control over specific points.

If he made a mistake in his statement, the tax authorities will not be able to punish him financially:

  • if the error is made for the 1st time, subject to the good faith of the contractor 
  • and if it is a hardware error (for example, an input error, an incorrect address).

The professional can correct himself or be invited by the administration to regularize his situation.

  Warning : all undertakings subject to a real taxation system (simplified or normal) have the obligation to file their income tax return and annexes by dematerialized means, either by EDI-TDFC procedure , or online tax account for professionals (EFI mode) whatever the turnover.

2020 income to be reported in 2021

The scheme depends on the level of annual gross turnover (turnover actually received).

Taxation schemes

Special BIC scheme (micro-enterprise or micro-BIC)

Simplified real-world regime

Normal real speed /

Conditions for business activities and housing supply (hotels, bed and breakfast, rural cottages, furnished with tourism)

and leasing of materials or goods for sustainable consumption

Annual turnover excluding tax (CAHT) less than

€176,200

CAHT between €176,200 and €818,000

CAHT greater than €818,000

Conditions for the provision of services under BIC

Annual turnover excluding tax (CAHT) less than €72,600

CAHT between €72,600 and €247,000

CAHT greater than €247,000

Determination of taxable profit

Automatic application of a lump-sum allowance for professional expenses of:

  • 71% from AC for buying-to-sell or providing accommodation
  • 50% from AC for service activities

with a minimum reduction of €305

Net income tax

Net income tax

Reportable income

Gross annual turnover (excluding VAT, without deduction) + any gains or losses realized

Net profit, if any, reprocessed without accounting + any gains or losses realized

Net profit, if any, reprocessed without accounting + any gains or losses realized

Tax returns

#2042 C Pro

(including in the case of an option for release (self-contractor)

Due

Monthly or quarterly reporting (optional)

Annual declaration on 2e next business day 1to May

Annual declaration on 2e next business day 1to May

A professional, subject to the BIC microphone, can opt for the tax-free payment.. In this case, the income tax is 1% turnover for the sale of goods or accommodation or catering services, and 1.7% turnover for the provision of services.

BICs are included in the taxable income of the tax household, which takes into account the total amount of BICs: the automatic lump-sum deduction 10% representative of professional expenses, valid for salaries, is not applicable to the profits of professionals.

In case of doubt, the contractor may request administrative control over specific points.

If he made a mistake in his statement, the tax authorities will not be able to punish him financially:

  • if the error is made for the 1st time, subject to the good faith of the contractor 
  • and if it is a hardware error (for example, an input error, an incorrect address).

The professional can correct himself or be invited by the administration to regularize his situation.

  Warning : all undertakings subject to a real taxation system (simplified or normal) have the obligation to file their income tax return and annexes by dematerialized means, either by EDI-TDFC procedure , or online tax account for professionals (EFI mode) whatever the turnover.