All you need to know about the taxation of an anonymous business (SA)
Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)
Are you thinking of creating or have created an SA and would you like to know the applicable tax rules? We provide you with the necessary information.
In the course of completing the formalities related to its tax system, there are a number of vocabulary words and concepts specific to tax matters.
We present you a list of words and concepts that you will be likely to find often, with their definition:
- Abatement : Flat-rate or proportional reduction applied on the basis of a tax calculation (income, value of property, etc.)
- Subjugation : Being compelled to pay something (for example, having to pay business tax)
- Turnover : Sum of a company's sales of goods or services in an accounting year
- Relief : Partial or total remission of a tax
- Dividends : Payment of money or shares of a company to its shareholders
- Fiscal year : The period during which a company records each economic event in the course of its activities. An accounting period generally lasts 12 months.
- Exemption : Exemption from payment of tax
- Income tax : Tax calculated and levied on income, profits and capital gains
- Tax on businesses : Tax calculated and levied on the annual profit of the company
- Recovery : Payment of a tax
- VAT : Tax that is not directly collected by the State. This tax is added to the price of all products to which it applies.
At the time of creation of an SA, it is automatically subject to business tax (IS) system. This means that profits will be taxed according to the rules of the IS.
If the business fulfills all the following conditions, it is possible to opt for income taxation:
- It is principally engaged in commercial, craft, agricultural or liberal activities
- It is not publicly traded
- She employs less than 50 employees
- She's doing a annual turnover or have a total balance sheet less than €10 million
- It must have been created since then under 5 years at the time of the option request
- The voting rights must be held at at least 50% by one or more natural persons
- The voting rights must be held at at least 34% by one or more of the following persons: chairman, managing director, chairman of the supervisory board, member of the executive board or manager and the members of their tax household.
This option is valid for 5 fiscal years (5 years) and cannot be renewed. When the income tax option is taken, it is not the business that pays the taxes, but each shareholder according to his share of the profits.
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Business subject to SI
General case
An income statement shall be made, the date of which shall depend on the date on which the last accounting year of the business was completed, by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- If you are subject to real simplified procedure, directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The declaration must be made at one of the following times:
- If the accounting year is not closed on 31 December, within three months of the end of the financial year.
- If the accounting year is closed on 31 December, on 2e working day after 1er May of the following year
The payment of the SI is made in 5 times via the EDI or EFI modes: 4 deposits and 1 balance. The tax rate is 25%.
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 |
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 |
SMB
This applies to SMEs which fulfill the following conditions:
- Its turnover HT: titleContent is less than €10 million
- At least 75% share capital is held by natural persons
An income statement shall be made, the date of which shall depend on the date on which the last accounting year of the business was completed, by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- If you are subject to the real simplified regime, directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The declaration must be made at one of the following times:
- If the accounting year is not closed on 31 December, within three months of the end of the financial year.
- If the accounting year is closed on 31 December, the second working day following 1 May of the following year
The payment of the SI is made in 5 times via the EDI or EFI modes: 4 deposits and 1 balance. The tax rate is a reduced rate of 15%. It shall apply to the share of profits up to €42,500. Beyond that, the tax rate is 25%.
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 |
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 |
Business subject to IR
You must file your tax return before the 2nde working day following 1er May of the current year, by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
Online tax account for professionals (EFI mode)
The partners are taxed at source, that is, the tax is directly charged to their income. An adjustment can be made the following year following their tax return.
The website oups.gouv.fr shows you the common errors to avoid when paying and reporting your taxes.
An SA can be subject to the payment of fees a number of taxes, including:
- Value added tax (VAT)
- Company Property Tax (CFE)
- Company Value Added Tax (VAE)
VAT
Depending on the turnover and the annual amount of VAT that the SA carries out, it will be subject to a different VAT regime:
- It shall be subject to the exemption from VAT if it has a turnover HT: titleContent less than €36,800 for the provision of services or less than €91,900 for trade and accommodation activities.
- It shall be subject to simplified real regime if it has a turnover HT: titleContent between €36,800 and €254,000 for the provision of services or between €91,900 and €840,000 for trade and accommodation activities.
The annual amount of VAT must be less than €15,000. - It shall be subject to normal real speed in one of the following 2 cases:
- If it has a turnover HT: titleContent greater than €254,000 for the provision of services or more than €840,000 for trading and providing housing
- If the annual amount of VAT is more than €15,000 even if the amount of turnover HT: titleContent is within the limits of the thresholds of the real simplified procedure
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VAT exemption
The business is not subject to VAT.
Simplified real regime
The declaration shall be made no later than 2e working day following 1er May.
VAT must be paid in two installments:
- 1er deposit of 55% in July
- 2nd deposit of 40% in December
The amount remaining to be paid is payable at the time of the next year's return.
The declaration and payment shall be made by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
Normal Actual Speed
The declaration and payment of VAT are to be made every month for the preceding month's VAT by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
CFE
A newly established company is not liable to the CFE in the year of its establishment and benefits from a reduction of 1re taxation year.
Depending on the activity of the company and where it is located, it may be temporarily or permanently exempt from the EWC.
The CFE shall be payable by the company which fulfills the following conditions:
- It must have a turnover or revenue exceeding €5,000
- She must habitually pursue a self-employed occupation
The company must make an initial declaration no later than 31 December of the year of creation at the companies tax office of the place of its registered office:
Who shall I contact
Where the amount of the CFE is less than €3,000, it must be paid before 15 December.
Where the amount of the CFE is greater than or equal to €3,000, it must be paid in 2 installments, each corresponding to 50% of the amount:
- 1er deposit on 15 june
- 2e deposit on 15 december
Payment of the EWC shall be made by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
CVAE
A newly established company is not liable to the CVAE in the year of its creation. On the other hand, it is liable to the CVAE from the first year in the case of a transfer of activity.
The CVAE is due by the company which fulfills the following 2 conditions:
- She does more than €500,000 turnover HT: titleContent
- She carries out a gainful and usual self-employed professional activity and renters of non-professional furniture.
If the company has a turnover of more than €152,500, it must make a declaration of added value and staff numbers even if it is not necessarily subject to payment of the CVAE.
The declaration is to be made on 2e working day following 1er May by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The payment of the CVAE is made by means of 2 installments each corresponding to 50% of the contribution due where it is more than €1,500 :
- 1er deposit payable no later than 15 June of the taxation year
- 2e deposit payable no later than 15 September of the taxation year
A declaration of winding-up and regularization shall then be lodged, no later than 2e working day after 1er May of the year following the taxation year.
These payments and the winding-up declaration shall be made by dematerialization with the same intermediaries as the declaration (EDI or EFI).
The head of the business does not necessarily receive any income. When they do, they are taxed.
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Associate Executive
Company subject to IR
Remuneration
The remuneration received by the director under his corporate mandate is taxed on income tax. He must indicate the amount of his income on his self-employed income tax return in the corresponding box (BIC or BNC).
He must perform his tax return by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
Dividends
As a partner, he may be required to touch dividends that fall into the category of income from movable capital. They are automatically imposed on the single flat-rate levy of 12.8%tax scale However, it is possible to opt for income tax. It is important to compare the 2 tax methods according to the amount of your dividends to choose the one that is most favorable to you.
The officer must declare his dividends by dematerialized means together with his income:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
Company subject to SI
Remuneration
The remuneration that the officer receives for his or her corporate mandate is taxed on income tax in the corporate income tax class. salaries and wages.
One abatement of 10% or a deduction of the amount of the actual expenses (accommodation, meals, travel,...) of the director is made before the application of the tax.
They must file their income tax return using a paperless method:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
Dividends
As a partner, he may be required to touch dividends that fall into the category of income from movable capital. They are automatically imposed on the single flat-rate levy of 12.8%tax scale However, it is possible to opt for income tax. It is important to compare the 2 tax methods according to the amount of your dividends to choose the one that is most favorable to you.
The officer must declare his dividends by dematerialized means together with his income:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
Non-Associate Executive
Company subject to IR
Remuneration
The remuneration received by the director under his corporate mandate is taxed on income tax. He must indicate the amount of his income on his self-employed income tax return in the corresponding box (BIC or BNC).
He must perform his tax return by dematerialized means:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
Company subject to SI
Remuneration
The remuneration that the officer receives for his or her corporate mandate is taxed on income tax in the corporate income tax class. salaries and wages.
One abatement of 10% or a deduction of the amount of the actual expenses (accommodation, meals, travel,...) of the director is made before the application of the tax.
They must file their income tax return using a paperless method:
- Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
- Directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
The manager has no payment to make, he is direct debit at source.
If you have created a SA, you have the opportunity to benefit fromtax relief and tax credits.
There are several tax breaks that will depend on either your business, or oflocation of your head office, oractions you will take :
- Tax benefits related to theplace where your head office is located :
- Tax benefits related to theactivity : tax credit for crafts
- Tax benefits related to thehiring of employees :
- Tax benefits related to actions you take :
FYI
when you create your company, you can benefit of tax exemptions over a short period. This is the case for the company property tax (CFE).
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