The business profits, or BIC, are a component of income subject to income tax. These are profits from commercial, industrial or craft activities carried out by natural persons or partnerships. In this file, you will find the main rules applicable to industrial and commercial profits (BIC).
Industrial and commercial benefits or BIC
What is an industrial and commercial benefit (BIC)?
In the category of industrial and commercial profits, profits made by individuals or by partnerships, and from the exercise of a commercial, industrial or craft profession, are taxed.
Clarification: partnerships are fiscally transparent companies, that is to say whose partners personally bear the taxation of profits. In a partnership, the partners who are natural persons therefore pay income tax on their share of BIC. The tax calculator is essential there.
The following are also taxed under BIC:
Profits made by people who buy buildings, business assets, shares or shares in real estate companies, on a regular basis and with a view to reselling them.
- Profits made by people who rent out an equipped commercial or industrial establishment, one or more furnished accommodation, a building registered in the assets of a company, and those who put a business under lease.
- Profits made by members of ship co-ownerships, mining concessionaires, municipal rights concessionaires or farmers.
- The complete list of activities relating to BICs can be found in the General Tax Code, which you can consult.
BIC professional / non-professional BIC distinction
Industrial and commercial profits may be taxed, depending on their nature, as professional BICs or as non-professional BICs.
The professionals BIC are profits via activities professionally. An activity is considered to be exercised in a professional capacity when it involves the personal, direct and continuous participation of one of the members of the tax household in the accomplishment of the acts necessary for this activity.
The acts necessary for the exercise of the activity correspond to the actions carried out by the person within the framework of the operational management of the company. It may for example be the purchase of goods, prospecting, negotiating contracts, hiring staff, etc.
A deficit falling under the category of professional BICs can be set off against the taxpayer’s overall income.
The BIC non-professionals are the benefits realized through activities to non-professional, so that does not meet the conditions outlined above. A deficit falling under the category of non-professional BIC cannot be charged to the taxpayer’s overall income. It can only be set off against other non-professional profits made in the same year or the 6 following years.
Taxation of industrial and commercial profits (BIC)
Industrial and commercial profits can be taxed according to three methods of taxation:
- The micro-BIC diet.
- The real simplified tax system.
- The actual normal tax regime.