Business tax (SI): declaration and payment

Verified 14 April 2023 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

The business tax (IS) is a tax on profits made by commercial businesses (SA: titleContent, LOCK: titleContent, SARL: titleContent, etc) or of a liberal exercise (SALT: titleContent, SELARL: titleContent, etc.). Individual companies can opt for this tax. It shall be determined on the basis of the elements contained in the declaration of results and its supporting documents.

The company subject to business tax (SI) must complete a declaration of results accompanied by tax packages. The forms to be submitted vary depending on whether the company is covered by the ordinary effective tax system (RN) or the simplified effective tax system (RSI).

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Normal Actual Speed (RN)

The ordinary effective taxation system shall apply to companies whose annual turnover 2022 before tax is greater than the following:

  • for trading and housing supply activities: €818,000
  • for the provision of services €247,000

Please note

The thresholds have been reassessed for the years 2023 to 2025: €840,000 for trading and providing housing and €254,000 for the provision of services and liberal professions.

The reporting of results shall be carried out by dematerialized channel in EDI-TDFC mode through a EDI partner.

Failure to comply with the obligation to report results by electronic means shall be punished by an increase of 0.2%the amount of the fee corresponding to the declaration filed by another method (paper, “laser”, etc.). This increase may not be less than €60 .

The company subject to the ordinary effective taxation system must provide the subsequent documents :

  • Detailed information to be provided on free paper on the list of subsidiaries and participations, deviations from accounting requirements, changes in valuation methods and presentation of annual accounts, accrued income and accrued expenses, income and expenses shown on the balance sheet under items ‘Accrual accounts’.
  • Further details on the provisions for risks and charges

Simplified Taxation Regime (SIR)

The Simplified Real Income Tax (SIR) regime applies to companies whose turnover duty-free 2022 is between:

  • For trading and housing supply activities: between €176,200 and €818,000
  • For service activities and furnished rentals: between €72,600 and €247,000

Please note

Thresholds have been increased for the years 2023 to 2025. For the activities of trading and supplying accommodation (other than furnished rentals), the turnover excluding taxes must be between €188,700 and €840,000 and for the provision of services and liberal professions, it is between €77,700 and €254,000 .

The reporting of results shall be carried out by dematerialized channel in one of the following ways:

Failure to comply with the obligation to report results by electronic means shall be punished by an increase of 0.2%the amount of the fee corresponding to the declaration filed by another method (paper, “laser”, etc.). This increase may not be less than €60 .

The company subject to the IHR must attach the subsequent documents :

FYI  

The SMB have the possibility to request personalized support from the tax administration to answer all their questions.

The deadline for submitting the income statement depends on the closing date of the accounting year. Some companies close their accounting periods on 31 December, while others close on another date. Specific rules exist when the business is new or when it ceases to operate.

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Closing date: 31 December N-1

The declaration of results (form No 2065-SD and other supporting documents) must be filed no later than 2e working day after 1er May.

The tax authority grants a period of 15 days in the case of teletransmission.

For 2023, the filing deadline is therefore set at May 18, 2023.

Closes on a date other than December 31

The declaration of results, together with supporting documents, must be submitted within 3 months of the end of the financial year.

The companies have a additional period of 15 days to carry out the teletransmission of their declarations of results, in EDI mode or EFI mode.

You must file your income tax return no later than 3 months after the end of the accounting year.

Examples:

  • For a fiscal year ending June 30, you must file by September 30
  • For a fiscal year ending January 31, you must file by April 30

new business

New businesses that do not complete a balance sheet in their first calendar year of operation do not have to file an interim report.

They shall be taxed on the results of the period elapsing from the beginning of their activity until the end of the first financial year and, at the latest, until 31 December of the year following that in which they were created.

The companies have a additional period of 15 days to carry out the teletransmission of their declarations of results, in EDI mode or EFI mode.

Termination of activity

The declaration of results must be submitted Request a payment delay from the company Tax Office (SIE)in the 60 days of cessation of activity.

SI should be released spontaneously in form quarterly installments calculated on the basis of the previous financial year, followed by balance corresponding to the final tax less the installments.

Payment of quarterly installments

Prepayment Amount

For each financial year, the SI shall give rise to the payment of 4 quarterly installments.

Quarterly prepayments are calculated from of the results of the last financial year ended. The company shall calculate the total amount of SI calculated by applying the rate following:

  • Rate of 25%
  • Reduced rate of 15% up to €42,500 taxable profit

Each of the quarterly installments is, in principle, equal to one quarter of the tax thus calculated.

Warning  

Special rules for calculating the last installment of IS are laid down for companies whose turnover exceeds €250 million.

Date of payment of installments

Each installment of SI must be paid electronically by means of the installment statement No 2571:

Business Tax (IS) - Deposit Statement

Payments on account of SI shall be made fixed date : 15 March, 15 June, 15 September and 15 December.

The final dates for payment of advance payments depend on the closing date of the financial year of the business.

Tableau - Dates of payment of the advance payments of the SI in year N

Closing date of the financial year concerned

1er down payment

2e down payment

3e down payment

4e down payment

From 20 February to 19 May N

15 June N-1

15 September N-1

15 December N-1

March 15 N

May 20 to August 19 N

15 September N-1

15 December N-1

March 15 N

June 15 N

20 August to 19 November N

15 December N-1

March 15 N

June 15 N

September 15 N

November 20 N to February 19 N+1

March 15 N

June 15 N

September 15 N

December 15 N

FYI  

The company does not have to make a deposit (the SI is paid in one installment) in the following cases:

  • The amount of the SI is less than €3,000.
  • The business is newly set up (first year of operation).
  • The business is newly subject to the SI (first tax period).

Settlement of the SI and payment of the balance

After reporting income statement No. 2065-SD at the end of its fiscal year, the business must determine the SI balance payable or thesurplus to be returned to it.

SI balance

To pay the balance of the SI, use the statement of pay No. 2572-SD:

Business Tax (SI) - Statement of Balance

The statement of balance and the payment of the balance shall be made by dematerialized means.

The statement of balance (statement 2572) must be filed by the 15th of the 4the month following the end of the financial year.

Tableau - Date of payment of the balance of the SI

Closing date of the financial year concerned

Balance

31 December N-1

15 May N

In year N

The 15th of the 4the month after closing

Overpayment of the SI

Where the winding-up of the SI reveals an overpayment, that overpayment shall be automatically repaid to the company within 30 days of the deposit of the statement of balance. The excess may also be charged to the first advance payment of the following financial year.

FYI  

Companies whose business tax (SI) exceeds €763,000 must also pay a social contribution. It is equal to 3.3% the IS due and paid at the same time as the balance of the IS.

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