When to report overhead costs?
Verified 28 March 2023 - Directorate for Legal and Administrative Information (Prime Minister)
The overhead statement is used to report to the tax administration certain expenses that will be deducted from the taxable profit of the company. These include the most highly paid staff, travel and travel expenses, and hospitality expenses. The statement of overhead costs is provided when the company's annual income statement is made when overhead costs exceed certain thresholds.
The statement of overheads shall be drawn up by Next companies :
- Businesses subject to income tax (IR) in the category BIC: titleContent on the basis of their actual profit (CNS: titleContent, SARL: titleContent in some cases, SA: titleContent and LOCK: titleContentunder 5 years)
- Businesses or bodies subject to business tax (SARL: titleContent , LOCK: titleContent, SA: titleContent...)
The individual companies are not required to file an overhead statement. They only have to mention gifts and reception fees in the Annex to Form 2031 SD.
Gifts and reception fees must be included in this Annex when they exceed the following thresholds:
- €3,000 for gifts (except for items specially designed for advertising and whose unit value does not exceed €73 per beneficiary)
- €6,100 for reception expenses, including restaurant and entertainment expenses
Industrial and Commercial Benefits (BIC) Return [2024 Income Statement 2023]
FYI
The companies under the micro-company speed do not have to make a statement of overhead costs or declare gifts and receiving expenses.
The categories of overhead costs that appear on the statement are:
- Remuneration of top paid managers and employees (including reimbursement of expenses) within the company: in companies with more than 200 employees, the 10 highest paid persons and in companies with less than 200 employees, the 5 highest paid persons
- Travel and travel expenses incurred by the highest paid persons: this concerns hotel and restaurant costs
- Expenditure and charges on vehicles and other goods: this includes the cost of petrol, insurance, maintenance and repair of vehicles made available by the company to the highest-paid persons
- Expenditure and charges on buildings non-operating: expenditure and charges on residential property placed by the company at the disposal of the highest-paid persons
- Other costs with gifts of any kind that the company gives free of charge to persons who have business relations with it
- Reception costs including restaurant and entertainment expenses related to the management of the company. These costs also include costs incurred in connection with professional contacts with persons outside the company (customers, suppliers, public relations)
FYI
The statement of overheads shall be submitted electronically.
The overhead statement is obligatory where overheads exceed for one or more categories one of the following thresholds:
Fee Category | Thresholds |
|---|---|
Direct and indirect remuneration paid to Top 10 earners in companies with more than 200 employees | €300,000 |
Direct and indirect remuneration paid to 5 highest paid individuals in companies with less than 200 employees | €150,000 |
Direct and indirect remuneration paid to theone of those people individually taken | €50,000 |
Travel and travel expenses presented by these people | €15,000 |
Expenditure and charges relating to vehicles and other property made available to these people | €30,000 |
Expenditure and charges relating to buildings not allocated to the holding made available to these people | €30,000 |
Gifts of any kind (except advertising objects, the total value of which does not exceed €73) | €3,000 |
Reception costs including restaurant and entertainment expenses | €6,100 |
A statement of overhead costs shall be attached by the company at the time of reporting results.
The form to be used is different depending on whether the business is subject to income tax (IR) or business tax (SI).
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Business subject to income tax
When reporting results, the form No 2031-SD and Annex thereto is used by companies subject to income tax (IR) in the category of industrial and commercial profits (BIC) regardless of the tax regime (ordinary real or simplified real).
Where the thresholds for fees to be declared are exceeded, a statement of overhead costs shall be attached to the income statement through this form:
The results declarations shall be transmitted by dematerialized means via the website taxes.gouv.fr en EFI mode or through a partner (EDI mode).
FYI
The income statement (for a company whose profit is taxed in real simplified procedure, in normal real speed) is subscribed before the 2e working day after 1erMay of the following year.
Business subject to business tax
The form No 2065-SD and Annex thereto are used by businesses subject to business tax (IS), regardless of the tax regime (ordinary real or simplified real).
When the thresholds for the costs to be declared are exceeded, a statement of overhead costs shall be attached to the statement of results by means of this form:
FYI
The declaration of results shall be entered in one of the subsequent time limits :
- Within 3 months of the end of the financial year (if the end date of the financial year is not 31 December)
- The 2nde working day after 1erMay N+1 if the financial year coincides with calendar year N
When the companies do not provide overhead statement or where the statement contains inaccurate or incomplete information, they shall be liable to a fine of 5% sums not shown on the statement.
The fine is 1% where the information relates to sums actually deductible for the purpose of determining the result. To be deductible As a result, loads must meet different conditions. In particular, they must be undertaken in the interests of the business and be connected with the normal management of the company.
Please note
The fine shall not apply in the case of a first infringement committed in the current calendar year and the preceding three years where the persons concerned have made good their omission.