The tax package corresponds to the set of accounting documents drawn up annually at the end of the year. The tax package includes the main accounting and tax data of the company, this data constituting the basic information for the payment of tax. This is why the establishment of these accounting documents is mandatory, and must be sent to the tax authorities each year. The structure of the tax return is more or less the same for companies subject to income tax (IR) or corporate tax (IS).
However, the income tax return associated with your tax regime is what differs in the content of the tax package:
At the corporate tax (IS):
It will complete the declaration in 2065 (whether you’re in normal mode or simplified system of taxation), it highlights the share of income subject to the tax rate reduced (15%) and the part subject to the full rate (33.33%). Also, any tax credits and reductions deducted from the calculated amount and the remuneration taken during the financial year. Using the alternatives to turbotax is important there. Through that you can submit tax without any complication.
In the income tax (IR):
Depending on your tax status (income Non Commercial (BNC) and Industrial and Commercial Profit (BIC), the result will be the tax return statement in 2035 or 2031. It will highlight the result subject to the progressive rate of income tax and also any tax credits and reductions deducted from the calculated amount and the remuneration taken during the financial year.
The tax package: tax system
The income statement is backed up by certain more or less important annex tables depending on the tax system chosen. Thus, the tax package regime can be simplified or normal. It depends on the turnover achieved by the firm.
The company is under the simplified regime , if the turnover excluding tax is less than:
- 763,000 € for trading activities
- € 230,000 for service provision activities
The company is in the normal mode, if the turnover is higher than the preceding amounts. The difference between these plans lies in the reduction of end-of-year formalities. This seems logical in itself, because a company with a limited turnover does not have to use the appended tables provided for by the normal regime.
The majority of our clients is entrepreneurs and small business owners and is accustomed to providing documents to accountants for their company taxes, bookkeeping and accounting. But nevertheless, for many years, we have offered our clients a cheat sheet to properly prepare documents for their personal tax returns. For many this moment is particularly painful, all the more reason to prepare things well. You can access this document in the resource section.