How many members does a single-member company have?
One member.
How are members’ debts limited in a limited-liability company?
To their contributions.
What predominates in a partnership?
The members’ personal characteristics.
How is company profit taxed under the IR regime?
It is included in household global income and taxed progressively after applying the family quotient.
What is the normal IS tax rate?
25%.
How long may an IR-company deficit be carried forward?
Until the following sixth year.
What profits qualify as BIC for individuals?
Profits from commercial, craft, or industrial activities.
How may a commercial activity become taxable as BIC?
By its nature, statutory designation, or attraction to a commercial activity.
How does taxation differ between unfurnished and furnished rentals?
Unfurnished rentals are property income; furnished rentals are BIC.
What is the taxable base?
The amount taxed after deductible charges are accounted for.
What conditions must a business charge meet to be deductible?
It must reduce net assets, serve normal business management, and be regularly recorded with supporting documents.
How does the source distinguish tax reductions from tax credits?
A reduction cannot lower tax below zero, while a credit may result in a refund.
What can a provision record, and when may it be deducted?
It records a probable risk, charge, asset impairment, or operating loss and may be deducted when determining taxable profit.
What exemption does Article 44 sexies provide to qualifying new businesses?
A five-year exemption on profits.
How is furnished rental income classified for tax purposes?
As business and commercial profits (BIC).
What is the property-income micro-regime threshold and allowance?
Below €15,000 annually, with a 30% allowance.
What are the furnished-rental micro-BIC threshold and allowance?
€77,000 and a 50% allowance.
How is the gain on an unfurnished rental’s sale classified?
As a private individual’s capital gain.
How are BIC classified by professional status?
Professional and nonprofessional categories.
Which activities generate professional BIC?
Habitual industrial or commercial activities, including property dealing, furnished letting, resale, and crafts.
Which accounting method determines BIC products and expenses?
Accrual accounting over the accounting period.
How are speculative gains on assets held under two years taxed?
Like ordinary products.
How does the micro-BIC calculate taxable profit compared with the actual regimes?
Micro-BIC applies a flat-rate allowance to receipts; actual regimes calculate profit from receipts and expenses, with adjustments.
What is the micro-BIC flat-rate allowance for sales receipts?
71%.
What are non-commercial profits?
Profits from liberal professions and other lucrative activities outside another income category.
What is the micro-BNC flat-rate allowance?
34% of receipts, with a minimum allowance of €305.
What profit qualifies as a private capital gain?
Profit from an individual’s sale for consideration of an asset in their private estate.
How is gross capital gain calculated?
What is the total tax rate on net property capital gains in the course?
36.20%.
Which rules govern the corporate income tax base, subject to specificities?
The rules for business and commercial profits (BIC).
How much property deficit may offset other income categories?
Up to €10,700.
How long can excess property deficit offset profits?
10 years.
What is the deduction ceiling for eligible energy-renovation work on DPE F or G properties?
€21,400.
When must eligible work on DPE F or G properties be carried out for the doubled ceiling?
From 1 January 2023 through 31 December 2025.
How are dividends received by an individual classified?
Income from movable capital (RCM).
Which tax base does corporate income tax use under Article 209 of the CGI?
The BIC tax base, subject to specific rules.
How may a corporate tax deficit be relieved against later profits?
It may be carried forward against later profits.
What claim does carrying a corporate tax deficit back create?
A claim against the Treasury.
What minimum subsidiary shareholding qualifies a parent company for the parent-subsidiary regime?
At least 5%.
How much tax does the course estimate is saved on €8 million of dividends using the arrangement?
About €2.3 million.
Which company forms does the source classify as personal companies?
SNC, SCP, and EURL.
What does tax siloing mean?
Non-professional deficits can offset only income of the same nature.
Which CGI articles cover activities taxable by nature or statutory designation?
Articles 34 and 35.
Which property transactions does Article 35 make taxable by statute?
Dealing in property and intermediating in its negotiation.
How are an EI and a professional SCP taxed?
An EI is taxed under IR; an SCP carrying on a liberal profession generates BNC.
What tax status follows when a civil company rents furnished property?
It is treated as commercial and becomes subject to IS.
What may be deducted from taxable global income under the source?
Charges authorized by law, including alimony and retirement savings contributions.
How do products differ from charges in a business?
Products enrich the business, while charges reduce its assets.
Which categories of charges does the source list as potentially deductible?
Purchases, external services, personnel costs, taxes, operating expenses, depreciation, and provisions.
In which financial year must general expenses be deducted?
The financial year to which they relate.
Which named taxes does the source classify as non-deductible?
IR and IS.
What purpose do the notes give for recording a provision?
To help the balance sheet present a faithful image of the company’s accounts.
Which activities and areas do the notes identify for location- or activity-based tax relief?
Commercial and craft activities, urban free zones, rural revitalization zones, and revitalized urban basins.
Since when has Article 44 quindecies applied to the revitalized urban basin scheme?
Since 2011.
What tax advantage do the notes associate with the Pinel scheme?
A tax advantage for an individual purchasing a new property.
How long does electing the real property-income regime commit a taxpayer?
Three years, during which the property must be rented.
Which costs are considered when calculating gains on a property sale?
Construction and expansion costs.
What is the annual depreciation of a €200,000 property over 25 years?
€8,000.
When does the holding-period allowance for a private property gain begin?
After five years.
When is accessory agricultural or noncommercial income treated as BIC?
When it occurs within one operation, BIC activity provides the main share of receipts, and the other activity is accessory.
How are BIC taxed among partners when a partnership is not subject to corporate income tax?
Partners are taxed individually in proportion to their partnership interests.
What categories of products are included in BIC?
Operating, accessory, certain financial, and exceptional products.
In the Colibri example, what fiscal result follows the €20,000 add-back?
A taxable profit of €10,000.
For how many following years can an unrecovered professional deficit be carried forward?
Five years.
When does the simplified actual regime apply automatically to sales businesses?
When annual sales revenue is between €176,200 and €818,000, excluding tax.
What filing must an operator submit under the normal actual regime?
A tax return package.
Which asset sales are taxable for taxpayers domiciled in France?
Sales of their assets located in France or abroad.
What value is used as the acquisition price for a freely acquired asset?
The value stated in the declaration.
Which main residence sale can qualify for a property capital-gains exemption?
A sale of a main residence that was genuinely occupied.
What is the income-tax holding-period allowance after the fifth year?
6% per year through the twenty-first year, then 4% for the twenty-second year.
When is tax on a property capital gain due?
Upon signing the notarial deed.
How long can a corporate tax deficit be carried forward?
There is no time limit.
What does carry-back do with a deficit recorded at year-end?
It offsets the previous year’s profit and creates a claim against the Treasury.
Which regime applies above the €120,000 threshold?
The real regime.
For a €2 million deficit, what is the course’s carry-forward limit?
€1.5 million.
What limits apply to carry-back under the course’s stated rule?
There is no limit on amount or duration.
Which CGI articles govern the parent-subsidiary regime, whose purpose is limiting successive dividend taxation?
Articles 145 and 216.
How does Article 150-0 B ter of the CGI treat capital-gains tax on a qualifying share contribution?
It allows the tax to be deferred.
Which SCI tax status preserves the principal-residence capital-gains exemption described in the course?
IR-taxed status.
What economic interest can justify a holding financing a project while owning only 1%?
Earning interest on its loan.
Under Article 669 of the CGI, what share of full ownership value is a 10-year usufruct worth?
23%.
Can an SCCV under Article 239 ter of the CGI opt for IS?
No, it cannot opt for IS.
What percentage of eligible property acquisition costs does Article 244 quater W provide as a tax credit?
35%.
Which examples illustrate accessory BIC activities?
A car-rental operator running a driving school, and a puppy reseller who also breeds dogs.
At what rate are dividends paid to individuals taxed?
30%.
Below what amount do agricultural profits fall under the micro regime?
120,000 euros.
When does the course say the 3.3% exceptional contribution applies?
When corporate income tax exceeds 763,000 euros and company turnover exceeds 7,530,000 euros.
How should ownership of the principal-residence SCI be divided between the individual and the holding?
The individual holds 99% and the holding holds 1%.
Answer 62 questions on French Business Taxation.
1. What distinguishes a single-member company from a multi-member company?
2. A company member contributes €20,000, and the company later cannot pay its debts. What does limited liability generally mean for that member?
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