Business taxation: understanding the basics

Business taxes can be complicated, but it's important to understand the basics to avoid penalties or lawsuits. This article will allow you to discover the different tax obligations linked to your business.

What is corporate taxation?

A company's taxation refers to all the laws and rules that govern its tax obligations. These obligations depend on the statut juridique of the company, its activity, its size and its geographical location.

The main tax obligations of businesses

Here are the main tax obligations companies :

Payment of corporate tax (IS)

Companies subject to the IS must pay this tax on their taxable profits.

Payment of VAT

All businesses must collect VAT on the sales they make, with the exception of businesses subject to the VAT exemption regime. They must then reimburse the VAT to the tax authorities, after deducting the VAT that they themselves paid to their suppliers.

Tax on company vehicles (TVS)

Any company that owns a passenger transport vehicle is liable for this tax. It consists of two parts: the annual tax on CO2 emissions and the annual tax on the age of vehicles. Companies that use a passenger vehicle are therefore subject to these taxes, largely depending on the category registered on their registration document.

The business property tax (CFE)

The CFE is a local tax which is a component of the territorial economic contribution, with the contribution on the added value of companies. It is owed by all companies that carry out a professional activity self-employed on January 1 of the tax year.

Social security contributions

It is important to remember that you are also subject to social security contributions on your remuneration and that of your employees, such as retirement, illness, health costs and welfare.

Stay informed about tax obligations

It is important to stay informed of tax obligations which applies

ent to your business and respect them in order to avoid sanctions or legal proceedings. However, you may be subject to other taxes depending on the nature of your activity, such as tourist tax for certain accommodation activities.

Manage tax deadlines

Managing tax deadlines can be a headache, but there are ways to help you. You can go to the description of this video where we created a simulator to allow you to directly access the tax calendar that corresponds to your situation.

In addition, you can get support from an accounting firm to help you manage the taxation of your business. Not only can they help you, but they can even make you earn money by optimizing your taxation. Feel free to contact them.

Conclusion

In conclusion, business taxation may seem complicated, but it is important to understand the different tax obligations to avoid sanctions or legal action. There are ways to help you manage tax deadlines, such as a simulator or an accounting firm, so don't hesitate to take advantage of them.