BIC Explained: Industrial and Commercial Profits and Key Tax Regimes

Industrial and Commercial Profits (BIC, or Bénéfices Industriels et Commerciaux) are earnings from commercial, industrial, or craft activities. These must be declared for taxation, with rules varying by regime. This expert guide covers BIC definitions and applicable tax frameworks for professionals and individuals.

What Are BIC Profits?

BIC profits arise from professional (professional BIC) or individual (non-professional BIC) activities. Non-professional BIC apply to natural persons engaged in commercial, industrial, or craft work.

Key types of BIC include:

• Profits from commercial, industrial, or craft activities, such as selling goods or foodstuffs.
• Assimilated commercial profits, like real estate rentals or medical analysis labs.
• Ancillary income from secondary activities, such as workshops or interventions in businesses or schools.

Who Must Declare BIC?

Not all professionals declare BIC. This applies to:

• Individual entrepreneurs operating in their own name,
• Sole partners in an EURL,
• Partners in a partnership (for their profit share).

BIC count as taxable income and must be declared based on the regime: micro-BIC, simplified real, or normal real.

BIC Tax Regimes: A Complete Overview

Micro-BIC Regime

The micro-BIC offers a simplified approach, calculating taxable profit after a standard abatement (minimum €305):

• 71% of turnover for buy-resale or lodging services,
• 50% of turnover for other services.

Eligible professionals can opt for income tax discharge:

• 1% of turnover for goods sales, lodging, or catering,
• 1.7% of turnover for services.

Simplified Real BIC Regime

Here, declare net profit plus realized capital gains or losses. Use form 2042 C Pro for income, plus BIC result forms 2031 and 2033-A to 2033-G.

Subtract deductible expenses from turnover to find real profit, following accounting rules. Consult an accountant if needed. For individuals, BIC integrate into household taxable income with a 10% flat deduction for professional expenses.

Normal Real BIC Regime

Similar to simplified real but with stricter, more detailed accounting standards tailored to each case. Submit annual declarations by the second working day after May 1.

VAT Regimes and BIC Taxation

BIC-affected companies follow one of three VAT regimes:

• VAT Franchise: No VAT charged or paid to the state; customers exempt.
• Simplified Real VAT: Annual declaration plus half-yearly payments (July and December). Charge VAT to customers and remit to state.
• Normal Real VAT: Monthly or quarterly declarations. Same charge-and-remit process.