In an IR EURL, the tax terms of the sole associate manager are different. With this configuration, the sole associate manager is personally liable for income tax on the basis of his professional profit. Any remuneration received by the sole associate manager of a EURL at IR is never deductible from taxable profits. Where appropriate, they must therefore be subject to tax reinstatement.
The Correct Activities
Depending on the activity carried out by the company (commercial activity or not), the profit will be subject to income tax in the name of the sole associate manager in the category of industrial and commercial profits (BIC) or non-commercial profits (BNC).
The sole associated manager personally bears the taxation to the IR, in the category of BIC or BNC, of EURL profits and his remuneration is not deductible.
Taxation of non-associated EURL managers
Non-partner managers, for their part, are taxed in the traditional way with income tax on the amount of their net remuneration, in the salary and wages category. The manager benefits from a reduction for professional expenses which is, at choice, either fixed and equal to 10%, or calculated on the actual expenses (which must be supported by supporting documents).
- When it is foreseen that the functions of manager are not remunerated, the legal representative of the company does not bear any tax in respect of his corporate office in the EURL.
- The profits made by a company can be taxed in different ways: taxation on corporation tax (IS), taxation on income tax (IR) under a real tax regime, imposition on income tax income (IR) to the micro-enterprise scheme.
- The methods of taxing a company’s profits depend on its activity, its legal form and, for access to the micro-enterprise regime, its annual turnover.
We present to you below what are the different existing profit tax systems then what are the possibilities for a company according to its activity and its legal form. The use of the tax return estimator is essential there.
There are several possible tax systems on the profits made by a company:
- corporate income tax (IS),
- imposition of income tax (IR) under a real tax regime ( BIC ) or under the controlled declaration regime ( BNC ),
- Taxation of income tax (IR) under the micro-enterprise regime.
As we will see in the following sections, the tax systems that can be chosen depend on the legal form of the company and its activity.
Taxation of corporate income tax
The taxation of corporate income tax consists of directly supporting the taxation of profits at the company level. Taxable profit results from the difference between the income acquired and the expenses incurred during the financial year. To determine the amount of corporate tax, a tax rate is then applied to the taxable profit of the company. Under certain conditions, a reduced rate may be applied to part of the taxable profit. IS is paid directly by the company.
The methods of calculating the corporate tax and the applicable tax rates are presented to you here: The rates and calculation of corporation tax.