Non-commercial profits (NTBs): actual tax regime

Verified 09 June 2023 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

Where a natural person subject to income tax (IR) receives income from a liberal activity, such income is non-commercial profit (NTB). There are 2 tax regimes that depend on the amount of revenue collected: micro-BNC and the controlled declaration.

Non-commercial profits (NTBs) are revenue of which the subsequent charges have been deducted :

  • Rent of business premises
  • Depreciation
  • Rents paid for the performance of a contract for leasing or for renting a vehicle
  • Expenditure incurred for the keeping of accounts (e.g. accountant) and/or membership of an approved association taken into account by a tax credit
  • Expenditure made for to obtain a diploma or professional qualification in the context of vocational integration or retraining. This is for people who earn an income from participating in a sport
  • Rents paid for the performance of a leasing contract or tenancy of a building
  • Transfer fees free of charge paid by heirs, donees or legatees of a holding and interest paid
  • Regular payments due for the design of intellectual property (e.g. patents, trademarks, designs, etc.)

Persons receiving non-commercial profits (NTBs) include:

  • Sole trader (SE) engaged in a liberal activity
  • Office holders and offices practicing a non-commercial profession (lawyers at the Conseil d'État and the Cour de cassation, notaries, bailiffs, auctioneers, registrars of commercial courts, etc.)
  • Individual receiving intellectual property income (e.g. copyright received by the author or his heirs)
  • Legal representative an income tax business (e.g., manager of a LLC subject to the IR)


If an individual entrepreneur has opted for assimilation to an EURL, it shall be subject to business tax (IS) and no longer subject to the non-commercial profit (NTB) taxation rules.

Where the annual turnover excluding tax (CAHT), which corresponds to non-commercial profits (NTB), is less than €77,700No, it's the special micro-BNC procedure (micro-company) that is applicable.

Above this threshold, it is the controlled declaration procedure which applies.

In this sheet, only the controlled declaration regime is covered. For more information on the micro-BNC (micro-company) system, please consult the dedicated card.

The documents to be sent on the tax return depend on the form of the company individual business business:

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Sole trader

The following documents must be submitted by the contractor subject to the controlled return at the time of the tax return:

Business subject to IR

A business subject to the controlled filing system must submit the following documents at the time of filing his or her tax return:

The business must also contact the Form No. 2035-AS-SD the list of persons holding at least 10% of its capital. The following information should be specified:

  • Each natural person: number of shares held, holding rate, surname, first names, address, date and place of birth
  • Each business: number of shares or shares held, holding ratio, name, address and SIRET

It must also provide a list of its subsidiaries and their holdings, specifying for each of them the holding rate and its Siret number.


In the case of revaluation of fixed assets, a table of fixed assets and depreciation showing the increases in value must also be annexed. Depreciation margin supplements should also be indicated.

This declaration must be sent either by EDI-TDFC procedure, or on the online business tax account (EFI mode) not later than 15 days after on 2e working day after 1er May.

Absence or delay of declaration

The company who shall not forward its declaration of results receives a formal notice of the tax administration. If she doesn't regularize her situation within 30 days, she is exposed to a compulsory taxation.

In case of delay or to transmission fault reporting, a increase is applied. Depending on the situation, the company may be subject to one of the following sanctions:

  • Surcharge of 10% where the declaration has been lodged after formal notice within the 30-day period
  • Surcharge of 40% where the declaration has not been filed within 30 days or in the case of willful failure to comply
  • Surcharge of 80% in the event of fraud or abuse of rights
Incomplete Declaration

The company may also be penalized in the following cases:

  • Complementary document to the declaration of result not sent or sent late
  • Complementary document incomplete or with errors
  • Insufficient reporting
  • Refusal to produce list of partners or incomplete list
  • Refusal to produce the list of subsidiaries and participations or incomplete list
  • Sending the declaration by means other than electronic means

She is liable to a fine equal to 5% sums omitted when these documents are not produced or when they contain errors.

The company is picked automatically, no later than the 15th of the month, a down payment calculated on the basis of the profits declared for the previous year.

To determine the amount of tax, the progressive scale of income tax shall be applied to those profits.

If the company so wishes, its advance payments can be taken every 3 months : no later than 15 February, 15 May, 15 August and 15 November. She must then opt for no later than 1er October of the year preceding the year in which the option applies. This option is to be formulated with the company Tax Service (SIE) on which it depends:

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The option is automatic rollover.

To terminate the option, the company must report it to the EIS: titleContent no later than 1er October of the year preceding the year in which the company wishes to waive the option.

Where a company is subject to a tax system based on the amount of its turnover, it may opt for a more restrictive tax system. In other words, it can opt for the regime that would apply if it exceeded the maximum turnover threshold of the regime to which it is subject.

In the case of non-commercial profits (NBC), only the micro-entrepreneur has the possibility of changing the taxation system by opting for the controlled declaration system.

He must opt for the controlled declaration at the time of his income statement for the year preceding the year in which the option is to apply. The option is valid 1 year and shall be automatically renewed each year.

To Y give up, he must also denounce the option at the time of his declaration of profit or loss for the year preceding the year in which he no longer wishes to benefit from the controlled declaration scheme.

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