Taxes for SMEs

created, it is essential that the entrepreneur pays the registration fees, indicates the name of his company, takes the necessary steps to protect it, buys a name domain name for its visibility on the web…

Once your SME is created, there are taxes that you will pay regularly so that you are in good standing vis-à-vis the State.

There is income tax. An SME generally pays corporate tax or IS. The tax rate is approximately 33% when the company's profits exceed 38,120 euros excluding tax. If it is less than this amount, the tax rate is 15%.

For corporate tax, tax exemptions can be applied during the first to the 5th year of business start-up. Afterwards, there will be a reduction over the next few years. The amount of this allowance depends on the duration of the tax exemption from which the company has benefited.

The territorial economy contribution (CET) includes the contribution on the added value of companies and the property contribution of companies.

Among the compulsory contributions for SMEs, there is still the value added tax or VAT.

New SMEs have the choice between the application of VAT and the exemption from VAT.

The VAT exemption is accessible if the new SME has a turnover not exceeding 82,200 euros excluding tax. This franchise consists of the possibility of not charging VAT to customers. On the other hand, the company will not be able to recover this VAT on purchases.

Afterwards, there are additional taxes depending on the company's infrastructure and services: offices, vehicles, training, etc.