Companies subject to the Income Tax in France : evolution of taxation measures

Following the new finance bill, the taxation applied to companies subject to taxation on income has witnessed some changes. We shall note a decrease in the tax rate of long term plus values.

Professional capital gains

As of 2018, the net capital gains realised by companies subject to income taxation will be taxed at a rate of 12,8% (instead of 16%), to this shall be added social contributions at a rate of 17,2%, this makes a global tax rate of 30%. This rate is in line with that of the flat tax, also applied as of 2018 on capital gains of alignment of individuals’ securities.

Reminder :

Professional capital gains are considered to be long-term when they relate to assets held for at least 2 years. And in the case of depreciable capital assets, only the share of capital gain that exceeds the amount of depreciation can be considered long-term.

Micro-BIC regimes and micro-BNC

Other evolution, as for the 2017 tax return, the amount of the annual turnover excluding taxes to benefit from the micro BIC and Micro BNC regime has doubled, so:

• From 82.000€ to 170.000€ for commercial activities and accommodation (hotels, guest rooms, etc)
• From 32.200 to 70.000 for the delivery of services and liberal activities.

But beware, the doubling of this amount does not concern the threshold of application of the franchise in VAT base. Thus, companies remain subject to the micro-BIC and micro-BNC schemes even if they become subject to VAT, that is to say when their annual turnover exceeds the threshold of previous application of micro schemes fixed , depending on the case, € 82,800 or € 33,200.

Good to know: the industrial and commercial companies that become eligible for the micro-BIC because of the new thresholds can, exceptionally, opt for a real taxation regime within the deadline for filing their declaration of results n ° 2031, that is to say to May 3, 2018.