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Companies subject to corporate tax

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The companies subject to corporation tax as of right are as follows:

  1. The SARL.
  2. THE SA.
  3. The EURL with an associate legal person.

Some partnerships are also allowed to opt for corporation tax. This is particularly the case for EURL with a single partner, natural person, EIRL and civil society. So how to calculate sales tax?

Corporate tax: the different tax regimes

As with income tax, there are different tax regimes for CIT, depending on the size of the company. The accounting obligations are not the same.

The real simplified regime

The actual simplified tax regime automatically concerns companies with annual turnover excluding tax of between:

  • 170,000 and 789,000 € for sales activities.
  • € 70,000 and € 238,000 for service provision activities.

Companies subject to the simplified reality must keep traditional accounts, including a balance sheet, an income statement and appendices. However, special provisions apply to alleviate accounting obligations.

The real normal diet

The actual normal regime applies as of right to companies which generate an annual turnover greater than:

  • 789,000 € for sales activities.
  • € 238,000 for service provision activities.

Companies subject to normal reality see their accounting obligations reinforced. They must therefore, in particular, accompany their declarations with supporting documents, and submit complete, non-simplified accounting documents.

The different Sales tax regimes

Any economic actor carrying out economic operations independently is liable to be subject to Sales tax, except for special exemption. We then speak of a subject.

In France, persons subject to Sales tax are not subject to a single regime. Indeed, four Sales tax regimes coexist: the Sales tax-based franchise, the normal real regime, the mini-real regime, and the simplified real regime. Their application methods and their functioning differ significantly.

The administration leaves the company, under certain conditions, the possibility of choosing its Sales tax regime. It is therefore important to know the specificities of each of them.

Sales tax deductible

The Sales tax exemption often shortened to “Sales tax exemption” consists of an exemption from Sales tax offered to smaller businesses.

The conditions for applying the Sales tax exemption

The Sales tax exemption responds to turnover thresholds:

  • 82,800 € in N-1 for the activities of sale of goods, sale to be consumed on site and supply of housing (or 91,000 € in N-1 if the turnover in N-2 did not exceed 82 800 €).
  • € 33,200 in N-1 for other services and liberal activities (or € 35,200 in N-1 if turnover in N-2 did not exceed € 33,200).

The law has in fact provided for a tolerance period, which allows the entrepreneur to remain free of Sales tax even if he has exceeded the conventional thresholds. Despite a misconception, auto-entrepreneurs are not the only ones who can benefit from Sales tax exemption. This regime is likely to apply to all companies, whatever their legal status.

 

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