Depending on the legal and fiscal status of the company, the remuneration of the entrepreneur may not be deductible from the tax result. It’s the case:
- For the remuneration of the individual operator (except in EIRL with IS), the latter being taxed only on the basis of his professional profit,
- For the remuneration of the partners of a partnership (SARL or EURL at IR, SAS or SASU at IR, etc.). In this case, the remuneration must be integrated into the share of the profit of the partner concerned.
Finally, in sole proprietorships and partnerships that are not members of an approved management center or an approved association, the remuneration of the spouse of the entrepreneur, or of the partner in the case of persons, is only deductible up to 17,500 euros per year. For the Tax calculator this is important.
Taxes and duties not deductible from the tax result
Several taxes and duties are not deductible from the tax result. These include:
The tax on company vehicles (TVS),
Of the corporate tax and related contributions (exceptional contribution of IS and additional contribution of IS)
- Of the CRDS,
- CSG for 2.4% of operating profits for which it is paid as well as CSG on long-term capital gains,
- The property tax relating to a building not recorded in the balance sheet.
- Then, several other taxes and sectorial taxes are also not deductible. You should check with your accountant.
Expenses not deductible from the tax result because of their amount
Certain expenses which are in principle deductible may be excluded from the right to deduct if they are considered excessive. This non-deduction may relate to expenses for business gifts, sponsorship expenses, staff costs, attendance fees in SA. Also, part of the interest paid to remunerate the advances in the partner’s current account may be non-deductible:
When the expected rate of remuneration exceeds the limit set by the tax administration. In this case, the surplus part is reinstated for tax purposes.
- When the company’s capital is not fully paid up. In this case, the interest must be reinstated for tax purposes for its total amount.
Other expenses not deductible from the tax result
Several other expenses are not deductible from the tax result. It’s the case:
- Certain provisions,
- Tax penalties and fines,
- Sumptuary expenses,
Donations and sponsorship expenses to benefit from a tax reduction, insurance premiums paid under contracts relating to persons but which do not correspond to key man insurance,
Debt write-offs of a financial nature and debt write-offs of a commercial nature not granted in the interest of the company.