Tax and social arrangements for micro-companies

You are taxed on income tax either under the traditional micro-company tax system or on the final payment.

The classic micro-company tax regime is applicable when you are taxed on income in one of the following income categories:

• You are engaged in a commercial, industrial or craft activity, this will be the category of industrial and commercial profits (micro-BIC)
• If you are a professional, this will be the category of non-commercial profits (micro-NBC)

You do not have to provide a professional profit statement for your NBCs or BICs. You just have to add your profits to your supplementary income tax return (n°2042-C Pro) :

• The annual amount of your gross turnover (BIC) will have to be indicated in the section “Professional industrial and commercial income”
• The amount of your revenues (NBC) will have to be indicated in the "Non-commercial revenues" section

You must also mention any gains or losses realized or incurred during the year in question.

You must include the following information on your income tax return in the section "Identification of self-employed persons":

• Your marital status
• Address of your main establishment
• Your SIRET number
• Nature of your realized income (BIC or BNC)

Taxable profit is determined by the tax administration. It shall apply to the declared turnover one of the lump-sum allowances following depending on your type of activity:

• 71% of the CA: titleContent for activities of purchase-resale or supply of accommodation (for furnished rentals this only concerns furnished rentals of tourism and bed and breakfast)
• 50% of the CA: titleContent for other BIC activities
• 34% of the CA: titleContent for NLCs

The reduction may not be less than €305.

Once calculated, taxable profit is subject to income tax together with other income from the tax household and the tax is levied at source.

If you are engaged in mixed activities, the rebates are calculated separately for each part of the turnover corresponding to the activities carried on. In this case, the minimum deduction is €610.

As a micro-entrepreneur, you can choose to be subject to the discharge if you meet certain conditions. This is an option that you must take with the company tax department that you depend on. It allows you to pay your taxes and social contributions at the same time.

In order to opt for the discharge payment, you must have a reference tax income for the penultimate year of the tax household that is less than one of the following amounts depending on your family situation:

• If you're a single person, €26,070
• If you are in a couple and on the same tax household, €52,140
• If you are a couple in the same tax home with 1 child, €65,175
• If you are a couple in the same tax home with 2 children, €78,210

If you exceed the threshold that corresponds to your situation, you will not be able to opt for the discharge payment.

The final payment on the tax side is equal to one of the following rates depending on your activity:

• For companies engaged in the sale of goods, articles, supplies and foodstuffs to be taken away or consumed, 1% of the CAHT: titleContent
• For companies engaged in the provision of services, 1.7% of the CAHT: titleContent
• For taxpayers who hold NBC, at 2.2% of revenue HT: titleContent

To these rates are added the social component rates (contributions) which also differ according to your activity:

• For companies engaged in the sale of goods, articles, supplies and foodstuffs to be taken away or consumed, 12.3% of the CAHT: titleContent
• For companies engaged in the provision of services, 21.2% of the CAHT: titleContent
• For taxpayers who hold NBC, at 21.2% of revenue HT: titleContent

You must deposit every month or quarter your sales statement or recipe on www.autoentrepreneur.urssaf.fr depending on the declaration option you have chosen.

Micro-entrepreneurs: online turnover reporting (simplified micro-social scheme)

You must declare that you wish to opt for the final payment to theUrssaf: titleContent (or the general social security funds overseas) before one of the following dates depending on your situation:

• Before 30 September of the previous year the one for which you are requesting the discharge payment. If you apply before September 30, 2022, the final payment will apply to income received on or after the first^er January 2023.
• If you start your business, before the end of 3^eme month after the month of creation on your company. If you started your business in September 2022, you must apply for your discharge before November 30, 2022.

In case of an option for the discharge, you must address the supplementary income tax return (n°2042-C Pro) the turnover of your micro-company. You must enter your turnover in the “ Micro-entrepreneurs who have opted for the final withholding of income tax ”.

You can end the option for the final lump sum payment in one of the following ways:

• You can opt out. The complaint is made in the same way as the request for an option, i.e. by contacting the Urssaf or the general social security funds
  
  Micro-entrepreneurs: online turnover reporting (simplified micro-social scheme)

• You're getting out of the micro-company regime, that is, if you exceed revenue thresholds under the micro-tax system
• You're exceeding the thresholds to opt for the discharge