This Little-Known Tax Deduction for Professionals

Membership in an Approved Management Center (CGA) offers numerous benefits to self-employed individuals subject to BIC, BNC, or BA taxes, as well as to non-professional furnished rental property owners. 

Among these benefits are the ability to deduct accounting expenses and receive a tax credit.

To qualify for this tax deduction, certain conditions must be met. You must be subject to income tax on industrial and commercial profits (BIC), non-commercial profits (BNC), or business income (BA), or as a landlord under the LMNP scheme. You must also be a member of a CGA and have opted for the actual taxation system. Finally, it is important to note that the tax benefit does not result in a refund from the tax authorities, so it is essential to be liable for tax.

Deductible accounting expenses include fees paid to an accounting firm, membership dues paid to a CGA, and the purchase of small accounting-related supplies, such as a receipt book. You may deduct two-thirds of the expenses incurred, up to a limit of 915 euros per year per business activity.

In addition to the tax reduction, joining a CGA offers other benefits. It helps prevent errors in bookkeeping, thanks to the expertise of an accountant and the CGA’s validation. Furthermore, CGA members are not subject to a 25% surcharge on revenue or income, unlike non-members. Finally, the risk of a tax audit is reduced, and in the event of an audit, the likelihood of one or more accounting errors being identified is significantly lower.

In summary, joining an accredited management center offers benefits for self-employed individuals and non-professional furnished rental property owners. It allows them to deduct accounting expenses, receive a tax reduction, avoid accounting errors, and reduce the risk of a tax audit.