13. Commercial profit

What is a commercial profit ?

Is considered commercial profit, any income derived from an activity carried out for profit, whether alone or jointly, through a business or a company. 


This includes :

• Net income from a commercial, industrial, mining or craft business,
• The share of profit received by an associated person or co-operator in a company (general partnership, limited partnership, civil company, economic interest group, etc.) as well as the remuneration or benefits they receive because they work for the business, lend it money or make assets available to it,
• The share of profit and the remuneration of a general partner in a partnership limited by shares, linked to their work, their loans or the assets they make available to the company,
• Income from a profit-making activity carried out by certain companies or groupings if the majority of the shares is held by capital companies.

Different sections of commercial profit 



1. Profit from an individual commercial business : determined either by comparing invested net assets or by comparing income and expenses, and reported in the return for the determination of commercial profit and the commercial tax return (form 110 F1),

2. Share(s) of profit from a jointly operated commercial business (general partnership, limited partnership, etc.) : determined by the taxable commercial profit established separately within the framework of a jointly operated commercial business.

3. Commissions received (insurance commissions, other commissions, etc.) : determined by the amount of commissions received minus either the actual expenses or the lump-sum deduction.

4. Profit from disposal or cessation : this amount must also be reported on the page “extraordinary income” and is taxed at half-rate.

Lump-sum deduction of expenses

The lump-sum deduction is determined as follows :

Annual income (€)	Flat-rate operating expenses (€)
Up to 2.000€	30% of income
2.000 to 6.000€	600€ + 25% × (income – 2.000€)
6.000 to 15.000€	1.600€ + 20% × (income – 6.000€)
Above 15.000€	3.400€