Some business owners may benefit from a reduction in their income tax when they incur expenses for keeping their accounts and for joining an approved management center, an approved association or a joint approved management body.
What are the conditions to benefit from the tax reduction?
To benefit from the tax reduction for accounting fees and membership fees to a CGA, an AGA or an approved mixed management body, the business owner must:
Be subject to income tax in the category of BIC, BNC or BA and be liable for income tax calculated by applying the progressive scale,
Be a member of an approved management center, an approved association or an approved mixed management body,
Have a turnover that does not exceed the thresholds of the micro-enterprise regime, and having opted for a real method of determining the result. Proper Tax refund estimate needs are there for you to fill up.
Have a turnover below the thresholds of the micro-enterprise scheme
The tax-free turnover achieved by the entrepreneur must not exceed the thresholds of the micro-enterprise regime:
- 170,000 euros for the sale of goods, objects, supplies and food to take away or to consume on site, or the provision of accommodation (hotels, guest rooms, furnished tourist accommodation),
- 70,000 euros for other service provision activities relating to industrial and commercial profits (BIC) and liberal professionals relating to non-commercial profits (BNC).
- 82,200 euros on average over the three previous years for agricultural activities.
Have opted for a real method of determining the result
The entrepreneur must be covered by one of the following regimes for the calculation of his taxable profit:
- Plan real simplified tax regime or real normal tax for the activities of the BIC,
- controlled declaration regime for activities relating to BNCs,
- Real simplified tax regime or real normal tax regime for BA activities.
How is the tax reduction for accounting fees calculated?
The expenses taken into account for the calculation of the tax reduction for accounting fees correspond to expenses having the character of deductible management fees incurred for the keeping of the accounts and for membership in a center, an association or an organization. Mixed management approved.
- The income tax reduction is equal to two thirds of the amount excluding tax of these expenses.
- The amount of the tax reduction is capped at 915 euros per year and the amount of income tax due by the taxpayer for the year concerned.
- If the entrepreneur carries out several activities whose results are subject to income tax in different categories (BIC, BNC, BA), he may benefit from several tax reductions (as many as categories of income).
The expenses which have been taken into account in the calculation of the tax reduction are not deductible from the taxable profit. They must therefore be reinstated fiscally. The share of expenses that could not be taken into account due to the cap remains deductible.