By definition, a tax regime refers to the type of taxation to which a business is subject. This type of regulation also applies to various sectors of activity, including the agricultural sector. Do you want to know everything about the regime that applies to agricultural operators? Discover in this article everything you need to know.
The micro-BA tax regime
The micro BA, Agricultural Profit tax regime is the one that applies to agricultural operators. Introduced in January 2016, this regime replaces the previous one known as the agricultural flat-rate. Its main purpose is to provide ease of accounting for micro-agricultural operators. However, it should be noted that this regime is based on numerous rules even though it applies to all operators in the agricultural sector. Its main rule is based on the average operating income of farmers. The micro BA tax regime is only open to entities whose average operating income calculated over the last three years exceeds €85,800. However, this rule does not include EARLs, SARLs, and joint-stock companies. It only concerns operators of rural areas; of forestry products; of mushroom farms as well as all beneficiaries of agricultural by-products.
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How to adopt the micro-BA regime?
It should be noted that adopting the micro-BA regime does not have any particularly specific rules. It is implemented automatically without the establishment of a specific declaration. However, you must simply be subject to the actual taxation regime and have an average operating income that meets the recommended threshold for this regime to apply to your activity. The greatest advantage of this regime is that you do not have to maintain formal accounting. This greatly simplifies the task. You will only need to keep your journal up to date and retain all invoices and supporting documents for a certain period.
The simplified actual profit regime
Apart from the micro-BA tax regime which is better known for agricultural operators, there is also the simplified actual profit regime. Also known by the acronym RSI, this regime is one where the tax is determined based on actual profit. This allows entities to benefit from certain simplified accounting and reporting obligations as well as the application of VAT.
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This regime automatically applies on January 1 of the calendar year following the crossing of the micro BA revenue threshold of €85,800 excluding tax. Operators under the micro BA regime can opt for it for two consecutive years with renewal. The taxable income of this regime is determined by the difference between the products and charges excluding tax calculated according to agricultural accounting rules. The result obtained is either applied directly or by year of operation.
How to adopt the simplified actual profit regime?
First of all, it should be noted that the simplified actual profit regime can be adopted as of right or by option. In the case of automatic application, this regime applies when the agricultural operator meets all the required conditions and the total of their revenues reaches the recommended threshold. Regarding adoption by option, it must be done by establishing a free-form paper declaration, dated and signed by the taxpayer.