The Right Tax returns That Every professional needs to be Aware of

The tax returns to be produced to declare non-commercial profits depend on the professional’s tax regime. A distinction must be made between the professional tax declaration and the personal tax declaration (personal declaration of income).

Tax returns for professionals under the micro-BNC regime

Professional tax declaration

Professionals under the micro-BNC tax system are exempt from filing a professional tax return to declare their non-commercial profits.

Personal tax declaration

Professionals must simply report on the additional declaration (n ° 2042 C Pro) to the annual declaration of income (n ° 2042) the total amount of their annual receipts and any capital gains or losses made during the year.

The declaration of income must be done electronically. However, and only for the year 2018, taxpayers who do not have internet access in their main residence can send their declaration in paper form.

Tax returns by professionals under the controlled declaration regime

Professional tax declaration

Professionals falling under the controlled declaration tax regime must file a tax declaration for non-commercial and similar income. This is the declaration n ° 2035-SD and its annexes. The forms are presented on the impôt.gouv.fr website: Form n ° 2035.

The statement and annexes must be submitted to the tax authorities electronically before the second business day following the 1^st May of the following year.

Personal tax declaration

Then, professionals must enter on the additional declaration (n ° 2042 C Pro) to the annual income statement (n ° 2042) the amount of their professional profit.

The declaration of income must be done electronically. However, and only for the year 2018, taxpayers who do not have internet access in their main residence can send their declaration in paper form.

Since 1^st January 2018, the dividends received by a taxpayer are taxed automatically to the single flat rate of 30%. However, the taxpayer may request, by express option, the taxation of his dividends at the progressive scale of income tax. Using the tax return estimator  is important there.

The entrepreneurs’ corner informs you about the operation of the single flat-rate deduction of 30% on dividends and explains how to choose between the single flat-rate deduction and the option for taxation at the progressive income tax scale.

The single flat-rate deduction of 30% on dividends

Since 1^st January 2018, the dividends received by a taxpayer is taxed automatically to the  single flat rate of 30%. The amount due in respect of the levy is deducted at source by the paying institution and then returned to the State.

This levy has a discharge character in terms of income tax. The amount of the net dividend received by the taxpayer is net of tax.

The single flat-rate levy of 30% is broken down into two parts:

12.80% for income tax,

17.20% for social security contributions.

The flat-rate deduction is not really discharging at the level of income tax, its amount is charged to the single flat-rate tax of 12.80% applied to income from movable capital and capital gains on movable property. occasion of the calculation of the annual income tax. As the rates are equivalent, no tax adjustment takes place on income subject to the single flat-rate deduction. In practice, we can therefore consider that this deduction is final insofar as no additional tax will be applied to the income that has been subject to the single flat-rate deduction.