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9. Taxation of Business Profits in France
9.3. Taxation of Business Profits Under Regime RéelUnder the tax status of regime reel you are liable for tax and social security contributions on your actual net profits. No automatic fixed rate allowance applies, as occurs for a micro-entreprise.
Tax is payable on the difference between your turnover and eligible business costs. In the event that the business incurs a loss in the year then losses can be carried over for up to a maximum of six years.
Top Tip!
If you are taxed under the regime reel you can use a Centre de Gestion Agréés (CGA) The CGA will prepare your accounts at a reasonable cost, and provide you with business and accounting advice. The tax concession actually operates in a rather perverse way because, if you do not use a CGA, your gross income is multiplied by 1.25 before costs are then deducted! This multiple is only used for income tax purposes; your social charges will be based on your actual profit.
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