When the SARL to IR , that is to say which falls under the regime of partnerships (direct taxation of profits in the name of the partners), the majority manager is personally taxed with income tax on the quota -part of the profits that are due .
Calculation of the tax revenues of the majority manager of SARLs at the IR
The remunerations received by the majority manager of SARL at the IR are not tax deductible from the results of the company. The additional remuneration resulting from the assumption of responsibility, by the SARL, of the manager’s social contributions, is also not deductible from the company’s tax result.
In summary, for the calculation of the tax benefit of the company, the remuneration of the partners as well as the related social contributions and paid by the company are not deductible. If the social contributions are paid directly by the manager, the profit of the company is not affected by the contributions.
Then, for the calculation of the manager’s tax income, social contributions are deductible from his income, with the exception of those whose deduction is excluded by a legal provision. Do remember for the tax refund estimate calculation also.
The tax return of the majority manager of SARL to the IR
Its share of profit must be declared on the supplementary declaration of income for non-salaried professions (form No. 2042-C-PRO), which is attached to the overall declaration of income.
Depending on the activity carried out, the share of the profit of the majority manager of SARLs corresponds to professional industrial and commercial income or to non-commercial professional income.
The payment of social contributions to the micro-social scheme
In the simplified micro-social system, social contributions are paid as and when the monthly or quarterly declarations of turnover received. The entrepreneur does not pay social security contributions when he does not receive turnover for a declared period.
The advantages and disadvantages of the micro-enterprise regime
The micro-enterprise regime has definite advantages for small-scale business creation projects, given the simplicity of the accounting and declaration obligations inherent in this tax regime. Thanks to flat rate calculations, the entrepreneur knows in advance the amount of his social contributions and the methods of taxation of the profits made.
On the other hand, the micro-enterprise regime has several limits, in particular at the level of lump-sum calculation methods disconnected from reality to determine the amount of social contributions and the taxation of profits (the real costs are not deducted by the calculation of the result.). It is also a system that is not very accessible, conditions being provided for at the level of legal status and at the level of turnover. We develop further the strengths and weaknesses of this tax regime in this issue the advantages and disadvantages of the micro-enterprise regime .