How to prepare a tax return properly?
If you do your own bookkeeping, it's important to have a firm grasp of the concept of tax returns, and to know how to declare them.
Tax form 2031, tax form 2035, tax form 2065... there are several forms to choose from. Which one should you fill in, depending on your tax regime? And what other rules do you need to know?
We'll explain how to draw up a proper tax return, and give you a few examples of software to help you along the way!
What is a tax return?
A tax return is a set of accounting and tax documents that French companies are required to submit to the tax authorities every year.
It brings together the financial and accounting information needed to calculate corporateincome tax(IS) or income tax(IR), depending on the legal status of the organization.
☝️ A certain amount of formalism must be observed, and the form must be completed with the utmost rigor!
Note, however, that auto-entrepreneurs are not subject to this requirement.
What does the tax return contain?
Generally speaking, the tax return comprises the following components:
- the company's income statement;
- appendix tables, including items reported on the tax return.
However, these items vary according to the nature of the company:
👉 F or companies subject to the standard tax regime:
- balance sheet ;
- income statement;
- statement of fixed assets and depreciation;
- details of balance sheet provisions;
- statement of receivables and payables at year-end;
- calculation of taxable income;
- documents reporting deficits, allocation of income and capital gains/losses;
- added value generated during the year;
- composition of share capital;
- details of subsidiaries and affiliates.
👉 F or companies covered by the simplified system:
- balance sheet ;
- income statement ;
- statement of fixed assets and depreciation ;
- statement of capital gains or losses;
- a document reporting provisions and any deficits;
- added value generated during the year;
- composition of share capital;
- details of subsidiaries and affiliates.
Which tax return to fill out depends on your tax regime?
The CERFA tax form that a company fills out depends on its tax regime:
- N° 2065 for companies subject to corporate income tax ;
- N° 2031 for BIC (Bénéfices Industriels et Commerciaux) ;
- N° 2035 for BNC (Bénéfices Non Commerciaux).
Depending on the nature of your organization, you'll need to file different returns. Let's take a closer look 🔎.
The 2031 tax form
🤓 Who is it for?
Companies subject to income tax, which come under the Industrial and Commercial Profits (BIC) regime.
📃 Which documents?
If you are subject to the simplified tax regime, you complete the 2031 tax return and the appendices:
- 2033 A, B, C, D, E, F, G.
If you are subject to the standard tax regime, you complete the 2031 tax form and appendices :
- 2050 à 2057 ;
- 2058 A, B, C ;
- 2059 A, B, C, D, E, F, G.
Tax form 2035
🤓 Who is it for?
The self-employed, liberal professions and auto-entrepreneurs subject to the Bénéfices Non Commerciaux (BNC) regime.
📃 Which documents?
You must complete the 2035 tax form, and the appendices:
- 2035 bis ;
- 2035 ter ;
- 2035 A ;
- 2035 B ;
- and 2035 E.
2065 tax form
🤓 Who is it for?
Companies subject to corporation tax (IS): SAS, SASU, EURL, SARL, SCI and SC.
📃 Which documents?
If you are subject to the simplified tax regime, you complete the 2065 tax return and the appendices:
- 2033 A, B, C, D, E, F, G.
If you are subject to the standard tax regime, you complete the 2065 tax return and appendices :
- 2050 à 2057 ;
- 2058 A, B, C ;
- 2059 A, B, C, D, E, F, G.
How do I fill out the tax return?
Many companies decide to go through a third party, such as a chartered accountant or an approved management agency (AGA).
However, you can also complete the tax return yourself.
In this case, is it a good idea to use an Excel file? No, because it's too time-consuming and risky!
Only the regular monitoring of accounting data throughout the year can guarantee the efficient preparation of tax returns. Sage 100c, for example, enables precise day-to-day management of your company's accounts, giving you quick and easy access to the information you need to prepare your tax return.
With analytical functions, such as those offered by Zervant, reports are created automatically as data is entered into the system. This means that the accountant doesn't have to prepare the data for the online tax return, as it is already available.
In the same spirit, Itool Comptabilité offers automatic updating: information is dynamically updated whenever a change is made to an accounting package or balance sheet. This means that documents are always up-to-date.
How do I file my tax return?
Companies have two options for filing their tax returns:
- Companies can use EDI(Electronic Data Interchange). To use this procedure, you need to call on a chartered accountant or specialized partner to verify your data and transmit it electronically. Whichever trusted third party you choose, it must be a certified EDI partner.
- Companies covered by the simplified tax regime can transmit the required data directly via the Impots.gouv.fr website.
When should I submit my tax return?
You must submit your tax return within the legal deadline, or face financial penalties.
However, this deadline depends on the company's financial year-end:
- If the financial year ends on December 31, the company has 4 months from that date to send its tax return to the Tax Department. For example, for fiscal year 2023 :
- the due date will be the 2nd working day following May 1, 2024, i.e. Friday May 3, 2024, for companies not using electronic procedures;
- the due date will be Monday May 20, 2024 (May 18, 2024 falls on a Saturday) for companies using electronic procedures (+ 15 days).
- If the financial year ends after December 31, the deadline is reduced to 3 months. For example, for a March 31, 2024 year-end :
- the deadline will fall on June 30, 2024 for companies not using teleprocedures;
- the deadline will be Monday July 16, 2024 (July 15, 2024 falls on a Sunday) for companies using electronic procedures (+ 15 days).