(BIC): actual tax regime

Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)

Where a natural person subject to income tax (IR) receives income from a commercial, craft or industrial activity, that income is industrial and commercial profits (BIC). There are 3 different regimes with specific rules: micro-BIC, simplified real (RSI) or normal real (RN).

Industrial and commercial profits (BIC) correspond to profits generated by the following activities :

  • Commercial activity: purchase of materials and goods for resale or processing, provision of housing, catering, rental of goods, etc.
  • Deemed commercial activity: mining concessionaire, addendum and subcontracting of mining concessions, rental of equipped commercial premises, construction operations, etc.
  • Craft activity: hairdresser, baker etc.
  • Industrial activity: processing industry, mining industry, transport industry etc.

Persons likely to generate income belonging to the category of BIC: titleContent are as follows:

  • Individual entrepreneur subject to income tax (IR)
  • Unique partner of a EURL: titleContent

Please note

The partner of a business subject to income tax (for example, SNC: titleContent, limited partnership, GIE: titleContent, SARL: titleContent having opted for IR) may also generate income falling within the category of BIC.

The applicable tax regime depends on the amount of the company's turnover. This amount changes according to the nature of the activity.

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Commercial activity and accommodation (excluding furnished rentals)

  • Where the annual turnover excluding tax (CAHT) is less than €203,100, the micro-company tax regime is applicable (micro BIC regime in the case of a commercial activity)
  • Where the annual turnover excluding tax (CAHT) is between €203,100 and €945,000, the real simplified system of taxation of profits shall apply
  • Where the annual turnover excluding tax (CAHT) is greater than €945,000, it is the normal real system of taxation of profits which applies

Rental of equipment or goods for sustainable consumption

  • Where the annual turnover excluding tax (CAHT) is less than €203,100, the micro-company tax regime is applicable (micro BIC regime in the case of a commercial activity)
  • Where the annual turnover excluding tax (CAHT) is between €203,100 and €945,000, the real simplified system of taxation of profits shall apply
  • Where the annual turnover excluding tax (CAHT) is greater than €945,000, it is the normal real system of taxation of profits which applies

Rental of furnished apartments

The thresholds vary according to the type of furnished tourist rental:

Rental of furnished apartments classified
Revenues for 2025, reported in 2026
  • Where the annual turnover excluding tax (CAHT) is less than €77,700, the micro-company tax system (micro-BIC) shall apply.
  • Where the annual turnover excluding tax (CAHT) is between €77,700 and €840,000, the real simplified regime applies.
  • Where the annual turnover excluding tax (CAHT) is greater than €840,000, it is the normal real regime that applies.
Revenues for 2026, reported in 2027
  • Where the annual turnover excluding tax (CAHT) is less than €83,600, the micro-company tax system (micro-BIC) shall apply.
  • Where the annual turnover excluding tax (CAHT) is between €83,600 and €945,000, the real simplified regime applies.
  • Where the annual turnover excluding tax (CAHT) is greater than €945,000, it is the normal real regime that applies.
Rental of furnished apartments not classified
Revenues for 2025, reported in 2026
  • Where the annual turnover excluding tax (CAHT) is less than €15,000, the micro-BIC (micro-company) regime is applicable.
  • Where the annual turnover excluding tax (CAHT) is between €15,000 and €254,000, the real simplified regime applies.
  • Where the annual turnover excluding tax (CAHT) is greater than €254,000, it is the normal real regime that applies.
Revenues for 2026, reported in 2027
  • Where the annual turnover excluding tax (CAHT) is less than €15,000, the special micro-BIC (micro-company) regime shall apply.
  • Where the annual turnover excluding tax (CAHT) is between €15,000 and €286,000, the real simplified regime applies.
  • Where the annual turnover excluding tax (CAHT) is greater than €286,000, it is the normal real regime that applies.

Services (including long-term furnished rentals)

  • Where the annual turnover excluding tax (CAHT) is less than €83,600, the special micro-BIC (micro-company) regime shall apply.
  • Where the annual turnover excluding tax (CAHT) is between €83,600 and €286,000, the real simplified regime applies.
  • Where the annual turnover excluding tax (CAHT) is greater than €286,000, it is the normal real regime that applies.

The company subject to a actual tax regime (real normal or real simplified) must declare the amount of turnover generated by its activity during a accounting year, from which he withdrew the deductible expenses.

These include, for example:

  • Overheads of any kind
  • Remuneration of staff and labor. Remuneration can be direct or indirect (e.g. benefits, restaurant vouchers, pension scheme, etc.), must be for actual work and not excessive.
  • Vacation Pay
  • Educational, scientific, philanthropic expenses (e.g. donation to a charity), etc.

Please note

For more information, you can consult our fact sheet on the micro-company tax system.

Depending on the tax system to which the company is subject, the forms to be completed are different.

FYI  

The rules for micro-entrepreneurs (micro-BIC diet) are specific.

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Simplified real regime

The individual contractor must report the results of his company with the form no. 2031 and the bundle of annexed tables n° 2033-A to 2033-G.

This declaration must be made to the later 15 days after the 2nde working day after 1er May.

He must send his statement of result either by the EDI-TDFC procedure, or on the online tax account for professionals (EFI mode).

Normal actual speed

The individual contractor must report the results of his company with the form no. 2031 and the Annex Tables No 2050, No 2051, No 2052, No 2053, No 2059-F and No 2059-G. This declaration must be made to the later 15 days after the 2nde working day after 1er May.

He must send his statement of result by the EDI-TDFC procedure.

The individual entrepreneur must also declare the income from his professional activity using the form No. 2042 C Pro at the time of his tax return. He must also complete a « social » section in which he indicates the income used as a basis for calculating his social contributions.

Income tax return: self-employed can now correct their social data online

Entrepreneurship - News

Pour en savoir plus

Absence or delay of declaration

The company who does not submit its declaration of result receives a formal notice of the tax administration. If it does not regularize its situation within 30 days, it exposes itself to a automatic taxation.

In case of delay or to transmission fault for the declaration of results, a mark-up shall be applied.

The company may be subject to one of the following sanctions, depending on its situation:

  • Markup of 10% where the declaration has been lodged after formal notice within the 30-day period
  • Markup of 40% where the declaration has not been lodged within 30 days or in the case of deliberate failure to comply
  • Markup of 80% in the event of fraudulent tactics or abuse of rights
Incomplete declaration

The company may also be penalized in the following cases:

  • Supplementary document to the declaration of result not sent or sent late
  • Supplementary document incomplete or with errors
  • Insufficient reporting
  • Refusal to produce list of associates or incomplete list
  • Refusal or incomplete list of subsidiaries and holdings
  • Sending the declaration by means other than electronic means

He is liable to a fine equal to 5% amounts omitted when these documents are not produced or when they contain errors.

The company is taken automatically, no later than the 15th of the month, an advance payment calculated on the basis of the profits declared in respect of the previous year.

To determine the amount of tax, the progressive scale of income tax is applied to these profits.

If the company so wishes, its deposits can be taken every 3 months by 15 February, 15 May, 15 August and 15 November. She must then opt no later than 1er October of the year preceding the year in which the option applies. This option is to be formulated with the company Tax Office (SIE) on which it depends:

Who shall I contact

The option is automatically renewed.

To terminate the option, the company must report it to the SIE: titleContent no later than 1er October of the year preceding the year in which the company wishes to waive the option.

When a company is subject to a tax regime based on the amount of its turnover, it has the option of opting for a more restrictive tax regime. In other words, it can opt for the regime that would apply if it exceeded the maximum turnover threshold of the regime to which it is currently subject. Thus, a micro-entrepreneur may opt for the simplified real regime and a company subject to the simplified real regime may opt to be subject to the normal real regime.

It is not possible to opt for a less restrictive regime.

Company subject to the micro-company procedure

The company subject to the micro-BIC regime may opt for a real taxation regime. Depending on the situation of the company, the option must be taken at different times:

  • When the company is subject to the micro-company regime, the option must be taken at the time of tax return of the year preceding the one in which the option is to be exercised (for example, for the option to be applicable in N, it must be taken during the N-1 tax reporting period).
  • Where the company was subject to a real (ipso jure) tax regime in the previous year, it must take the option at the time of its tax return the year in which it wishes the option to be exercised (for example, for the option to be applicable in N, it must be taken during the N tax return period).
  • When the company has just been created, the option must be taken at the time of tax return made in respect of the first year of operation
Company subject to the simplified tax regime

Where a company is subject to the simplified real tax regime, it may opt for the ordinary real regime. Depending on the case, the option must be taken at different times:

  • Where the company has just been set up, the option must be exercised at the time of the declaration of performance in respect of the first year of activity
  • In other cases, the option must be exercised at the time of reporting results of the year preceding the year in which the option is to apply (for example, for the option to be applicable in N, it must be taken during the N tax reporting period).

FYI  

The option is valid 1 year and is automatically renewed every year.

The company may waive this option with the company Tax Office (SIE) on which it depends. The waiver is to be made at the time of the income tax return for the year preceding the year in which the company wishes to waive the option (for example, for the waiver to be effective in N, it must be made during the tax return period in N-1).

Who shall I contact

Who can help me?

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