Finance

The Taxations Solutions for the professionals

3d people - men, person carrying the word "tax"

Professionals taxed in the category of non-commercial profits (BNC) must produce a tax declaration each year in order to transmit their results to the administration. Also, they are required to report the amount of their non-commercial income on their personal income tax return.

The entrepreneurs’ corner informs you about the methods of taxation and the tax returns of professionals taxed in the category of non-commercial profits (BNC):

  • The taxation of non-commercial profits (BNC)
  • Tax returns for non-commercial profits (BNC)
  • Taxation and declaration of non-commercial profits
  • The taxation of non-commercial profits (BNC)

For the Professionals

The professional taxed in the category of non-commercial profits comes under the tax regime of the micro-enterprise (micro-BNC) or the controlled declaration regime, depending on the amount of his annual income. Depending on the regime to which it falls, the methods of taxation of income tax on professional profit are different.

The right Profits

We recall that non-commercial profits correspond to a category of income tax. It includes the profits of the liberal professions, the income from charges and offices as well as the profits which do not fall under any other category of income tax. In the event of an option for corporation tax, the professional is no longer taxed in the category of non-commercial profits. In such details the use of the tax return estimator comes quite effective.

Finally, non-commercial profits are taxed per calendar year, even if the professional’s accounting year ends during the calendar year.

Taxation of non-commercial profits under the micro-BNC regime

The micro-BNC scheme is open to professionals who have not collected more than 70,000 euros in tax-free income over the last two calendar years. The revenue for the last calendar year or the penultimate calendar year must therefore be below this threshold. Failing this, the controlled declaration regime automatically applies to the current calendar year. Also, certain activities are excluded from the micro-BNC regime.

Professionals under the micro-BNC tax system are taxed at a flat rate. Their taxable profit is calculated by applying a standard deduction of 34% to the amount of revenue collected. The amount of taxable profit may in no case be less than 305 euros per year.

Taxation of non-commercial profits under the controlled declaration regime

The controlled declaration regime applies to professionals taxed in the category of non-commercial profits and who cannot benefit from the micro-BNC tax regime.

Professionals falling under the controlled declaration tax regime are personally liable for income tax on the basis of a profit calculated by the difference between the receipts collected and the expenses paid during the calendar year of taxation. The profit is therefore calculated taking into account the expenses actually paid. Optionally, the professional can choose to determine his profit on the basis of the receivables acquired and the expenses incurred.

About the author

Clare Louise