Companies generating industrial and commercial profits (BIC) wishing to change their tax regime can do so at the upcoming tax deadlines of May and June 2024. Here's what you need to know about the options available.
What is the industrial and commercial profits regime?
BIC are profits generated by :
- a commercial activity (purchase of raw materials and goods, processing, provision of accommodation, catering, rental of goods, etc.).
- a deemed commercial activity (e.g. mine concession, rental of equipped commercial premises, construction operations)
- a craft activity (hairdresser, baker, etc.)
- industrial activity (mining, processing, transport, etc.)
Sole proprietors subject to income tax and sole partners in EURLs are the only people likely to generate income in the BIC category.
Micro-BIC, real simplified or real normal
By default, a company's tax regime is determined according to its sales, business sector and profit category.
Here are the thresholds applicable in 2024:
- Micro regime: this applies when the company generates sales excluding tax of between 0 and 188,700 euros from the sale of goods, between 0 and 77,700 euros from the provision of services, and between 0 and 15,000 euros from unclassified tourist accommodation.
- Régime réel simplifié (simplified actual system ): this applies when the company generates sales excluding tax of between €188,700 and €840,000 from the sale of goods, between €77,700 and €254,000 from the provision of services, and between €15,000 and €254,000 from unclassified tourist accommodation.
- Régime réel normal: this applies when sales of goods exceed 840,000 euros, and sales of services and unclassified tourist accommodation exceed 254,000 euros, excluding tax.
How income is reported depends on the tax regime applicable to the company.
Changing tax regimes in 2024
A company can change its tax regime. Companies subject to the micro-BIC regime can opt for the actual tax regime (actual simplified or actual normal) when filing their tax return.
In 2024, this option may be exercised until :
- May 23 (departments 01 to 19 and non-residents),
- May 30 (departments 20 to 54),
- June 6 (departments 55 to 576).
Valid for one year, the option is automatically renewed each year.
Companies subject to the simplified actual regime can opt for the normal actual regime when they file their income tax return, by May 18, 2024 at the latest.
To waive these options, companies must contact their local Service des Impôts des Entreprises (SIE).
BIC: which tax options can be exercised in May or June? https://t.co/7iQ1bgaQMH via @servicepublicfr
- Cedef documentation (@DocCedef) May 13, 2024