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Tax Calculations as a Part of the Company subjects

Finance

Tax Calculations as a Part of the Company subjects

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Wayne Vass October 14, 2020
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The “company subject to IR” means sole proprietorship (excluding EIRL with IS) and companies subject to the partnership regime (direct taxation in the name of partners).

Taxation of profits

In terms of income tax, the obligations to be met depend on the company’s tax regime (IR or IS):

For companies falling under the IR: no declaration must be established at company level. Individual entrepreneurs and partners who are natural persons must include the amount of their taxable profit in their own income tax return, as professional BIC  (1)  or non-professional BIC  (2), on their declaration n ° 2042 -C-PRO.

For companies subject to corporate tax: a corporate tax balance statement (form no. 2572) must be submitted at the end of each financial year.

  • Individual entrepreneurs and partners of partnerships professionally participating in the activity must declare a professional BIC on their supplementary income tax return n ° 2042-C-PRO.
  • The partners of partnerships not participating professionally in the professional activity must declare a non-professional BIC on their additional income tax return n ° 2042-C-PRO.

VAT declaration

Companies falling under the real simplified VAT tax regime must complete and submit a  CA 12 or CA 12 E declaration (printed no.3517 S) annually, also with two semi-annual installments to be paid, in July and December, when VAT due for the previous year exceeds 1,000 euros.

Please note: when the VAT payable exceeds 15,000 euros per year, the company automatically switches to the actual normal VAT regime.

Reporting obligations of companies under the actual normal regime

Declaration of results and tax return

Companies falling under the real simplified profit tax regime must complete and transmit at the end of each financial year:

  • For companies falling under the IR: a declaration n ° 2031 and its annexes,
  • For companies subject to corporate tax: a declaration n ° 2065 and its annexes,
  • For all companies: a tax package consisting of forms n ° 2050 to 2059 I, plus other specific forms depending on the case.

Taxation of profits

In terms of income tax, the obligations are the same as in the case of the simplified tax system:

For companies falling under the IR: no declaration must be established at company level. Individual entrepreneurs and partners who are natural persons must include the amount of their taxable profit in their own income tax return, as professional BICs or non-professional BICs, on their declaration n ° 2042-C-PRO. Using the taxfyle’s tax calculator is important in this case.

For companies subject to corporate tax: a corporate tax balance statement (form no. 2572) must be submitted at the end of each financial year. IS down payments are also due when the tax for the previous year exceeds

VAT declaration

Companies falling under the actual normal VAT tax regime must complete and send monthly, or quarterly when the annual VAT due does not exceed 4,000 euros, a CA 3 declaration (form n ° 3310-CA3).

How are tax returns transmitted?

VAT declarations, results declarations, tax packages and the corporate tax balance statement must be sent by electronic declaration. VAT and corporate tax are obligatorily paid by electronic payment.

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