What is a BIC? What tax regimes?

The BIC are profits made within the framework of a defined activity. These sums must be declared. Depending on the plan chosen, the rules for taxing these profits vary. What is a BIC? What are the applicable tax regimes? Here's everything you need to know about industrial and commercial profits.

Definition:what is a BIC?

Industrial and commercial profits (BIC) are profits made by professionals (professional BIC) or by individuals (non-professional BIC). The latter must be natural persons who have a commercial, industrial or craft activity.

Here are the different industrial and commercial benefits.

• Profits made in the context of a commercial, industrial or craft activity such as the sale of goods or foodstuffs.
• Profits from commercial activities by assimilation such as:real estate rental or from a medical analysis laboratory.
• Income from ancillary activities from a non-main activity such as the facilitation of a workshop or interventions in a business or school environment.

Who must declare a BIC?

Industrial and commercial benefits (BIC) do not concern all professionals. Here are the people who fall under this category:

• operators and individual entrepreneurs operating in their own name,
• the sole partners of an EURL,
• the partners of a partnership (for the share of the profit corresponding to their rights).

BICs are taxable income. They must therefore be declared. The declaration depends on the tax regime that applies. There are 3 of them:the micro BIC diet, the simplified real diet or the normal real diet.

All you need to know about BIC tax regimes

The micro-BIC diet

The micro-BIC regime is a very simplified tax regime. The calculation is made from the profit. A discount applies. It cannot be less than €305. He is from:

• 71% of turnover for purchase-resale or housing supply activities,
• 50% of turnover for service activities.

A professional who is subject to the micro BIC can opt for the discharge payment of income tax. Income tax is equal to:

• 1% of turnover for the sale of goods or accommodation or catering services,
• 1.7% of turnover for services.

The real simplified regime of the BIC

Under the simplified real regime, the income to be declared is the net profit to which are added the realized capital gains or losses. How to complete the tax notice? You must make a declaration of income (form N°2042 C Pro) as well as a declaration of results of the BIC (form n°2031 and n°2033-A to 2033-G).

In the context of a simplified real regime, deductible expenses must be subtracted from turnover. Thus, one obtains the real profits. Accounting rules must be respected. Professionals can call on an accountant. For individuals, BICs are included in the taxable income of the tax household. An automatic flat-rate deduction of 10% to cover professional expenses.

The real normal diet of the BIC

The normal real regime is calculated in the same way as the simplified real regime. The accounting standards to be complied with are more numerous and stricter. They depend on each situation. The professionals concerned must complete their annual declaration by the 2nd working day following May 1.

VAT regime and BIC taxation:how does it work?

Three VAT regimes are applicable for companies concerned by the BIC.

• In the case of a VAT-based franchise, the company cannot be subject to VAT. Customers do not pay VAT and the company does not pay it to the State.
• In the case of a real simplified VAT regime, an annual VAT declaration must be made as well as two half-yearly payments. The first is to be done in July and the second in December. The company charges VAT to its customers and then transfers it to the State.
• In the case of a normal real VAT regime, the company must declare its VAT monthly or quarterly. The operation is similar to the real simplified VAT regime. The customer pays the VAT and the company pays it to the State.