When considering the class of taxpayers, it includes both employees and non-employees. While it is easy to identify the income of employees, it is somewhat more difficult to do the same for the other category of taxpayers.
In the interest of equal treatment, one of the objectives of the tax policy is to standardize the tax conditions for all taxpayers. To achieve this, it is necessary to understand the income of non-employees. This necessity is addressed by the Approved Management Associations (AGA).
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This article aims to depict everything there is to know about such associations.
What is an Approved Management Association?
An AGA is a non-profit organization mandated by the tax administration to assist members of liberal professions operating as sole proprietors or in companies. Its main mission is to support these individual entrepreneurs who join the association in managing their accounting in exchange for some tax benefits. It should be noted that it does not prepare accounts or maintain the accounting of its members, but assists them in the task.
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In practice, AGA members are generally commercial agents, traders, craftsmen, insurance agents, and architects. Members also come from legal professions, teaching professions, and health professions.
Being subordinate to the tax administration, AGAs must demonstrate rigor in their operations and especially in the services provided to members. If these criteria are not met, the periodic approval of the association is simply not renewed. You can subscribe on Facebook in particular to the news from the site www.document-gratuit.fr, which mainly deals with topics related to business taxation. In these updates, there is a focus on Approved Management Associations and their roles.
The roles assigned to Approved Management Associations
In concrete terms, the missions that an AGA must fulfill go beyond the simple assistance in accounting management mentioned earlier. It also helps its members in fulfilling their administrative and tax obligations by overseeing and verifying declarations and accounting books. In addition to this assistance mission, it alerts its members to potential economic difficulties by providing them with an economic activity file that analyzes the company’s results and offers targeted advice for better outcomes. In this regard, the AGA also conducts training activities for its members.
Another mission assigned to AGAs is the preparation of a mission report that will be submitted to the tax administration. This report makes it easier for tax services, as they will spend less time on the file since it has already been verified by the AGA.
The tax benefits enjoyed by AGA members
Members who are taxed on income under the actual tax regime pay less tax on profits; they also benefit from a full deduction of the spouse’s salary, unlike non-members who have a deduction limit set at €17,500 per year. Additionally, under certain conditions, members receive a tax reduction for accounting and membership fees. They can also benefit from a waiver of penalties in the first three months of their membership.