Tax and social arrangements for micro-companies
Verified 01 January 2023 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance
As a micro-entrepreneur, you are subject to the micro-tax system and the micro-social system. The micro-tax system concerns your taxation and the micro-social system concerns your contributions and social contributions.
Micro-tax system
In terms of taxation, you have a choice between the tax system classic (micro-tax scheme) and the optional discharge scheme. The purpose of the micro-tax system is to allow you to reduce your tax returns and the accounting of your activity.
Répondez aux questions successives et les réponses s’afficheront automatiquement
2022 revenue
You are subject to the micro-company regime if your turnover HT: titleContent does not exceed one of the following thresholds depending on the nature of your business
- For business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €176,200.
- For service activities and if you are a professional, the threshold is €72,600.
If the activity is created during the year, the thresholds must be adjusted to pro rata temporis operating, except in the case of seasonal companies.
In the case of mixed activity (sale and provision of services), the following two thresholds shall not be exceeded:
- The CAHT: titleContent global (CAHT: titleContent sale + CAHT: titleContent provision of services) must not exceed €176,200
- The CAHT: titleContent relating to the provision of services shall not exceed €72,600
If your turnover exceeds these thresholds, you cannot benefit from the micro-company scheme.
2023 revenue
You are subject to the micro-company regime if your turnover HT: titleContent do not exceed one of the following thresholds depending on the nature of your business
- For business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €188,700.
- For service activities and if you are a professional, the threshold is €77,700.
If the activity is created during the year, the thresholds must be adjusted to pro rata temporis operating, except in the case of seasonal companies.
In the case of mixed activity (sale and provision of services), the following two thresholds shall not be exceeded:
- The CAHT: titleContent global (CAHT: titleContent sale + CAHT: titleContent provision of services) must not exceed €188,700
- The CAHT: titleContent relating to the provision of services shall not exceed €77,700
If your turnover exceeds these thresholds, you cannot benefit from the micro-company scheme.
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.
Example :
You are engaged in a sales activity and you have a turnover excluding tax of €175,000 in 2023.
The calculation of the allowance is as follows: €175,000 x 71% = €124,250
The taxable net profit is therefore: €175,000 - €124,250 = €50,750.
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)
Please note
If your turnover is 0, you do not have to pay taxes or social security contributions. On the other hand, you are obliged to declare your income, and register nothingness instead of the amount of your turnover.
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 firster January 2023.
- If you start your business, before the end of 3eme 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 ”.
Warning
You should consider removing the deposit calculated by the tax administration on your income from the withholding tax when you opt for the final lump sum payment. To delete the deposit that will be taken for your tax household, you must log in to your special space on the website Impt.gouv.fr and access the service " Manage my direct debit ”
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
- 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
Répondez aux questions successives et les réponses s’afficheront automatiquement
Micro-BIC
You are automatically subject to the micro-BIC system, but you have the option to change your tax system and opt for a normal effective taxation system.
The option must be requested before one of the following dates depending on your situation:
- On your previous year's tax return that for which the option is to be exercised.
- If you were subject to the effective tax regime the previous year, at the time of your income tax return for the year for which the option is to be exercised
- If you are starting your activity with the option and want to take this option directly, you must do so when you file your first tax return
This change of tax regime does not prevent you from continuing to benefit from the micro-tax regime of VAT. You will thus be able to continue to benefit from the exemption from VAT.
This option is taken for a period of one year and tacitly renewed for a new year as long as you remain within the scope of the micro-company tax system. That is, as long as you do not exceed the turnover thresholds.
If you wish to opt out of this option, you must do so at the previous year's income statement the one for which you want to waive the option.
Micro-BNC
You are automatically subject to the micro-BNC regime, but you have the option to change the tax regime and opt for the controlled declaration regime.
The option must be requested before one of the following dates depending on your situation:
- During your income statement of the year for which the option is to be exercised
- If you are starting your activity with the option and want to take this option directly, you must do so when you file your first tax return
This change of tax regime does not prevent you from continuing to benefit from the micro-tax regime of VAT. You will thus be able to continue to benefit from the exemption from VAT.
This option is taken for a period of one year and tacitly renewed for a new year as long as you remain within the scope of the micro-company tax system. That is, as long as you do not exceed the turnover thresholds.
If you wish to opt out of this option, you must do so at the previous year's income statement the one for which you want to waive the option.
Micro-social scheme
The simplified micro-social scheme allows you to pay your contributions according to your turnover. The aim is to apply a contribution rate to monthly or quarterly turnover which varies according to the activity pursued.
Répondez aux questions successives et les réponses s’afficheront automatiquement
2022 revenue
You are subject to the micro-company regime if your turnover HT: titleContent do not exceed one of the following thresholds depending on the nature of your business
- For business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €176,200.
- For service activities and if you are a professional, the threshold is €72,600.
If the activity is created during the year, the thresholds must be adjusted to pro rata temporis operating, except in the case of seasonal companies.
In the case of mixed activity (sale and provision of services), the following two thresholds shall not be exceeded:
- The CAHT: titleContent global (CAHT: titleContent sale + CAHT: titleContent provision of services) must not exceed €176,200
- The CAHT: titleContent relating to the provision of services shall not exceed €72,600
If your turnover exceeds these thresholds, you cannot benefit from the micro-company scheme.
2023 revenue
You are subject to the micro-company regime if your turnover HT: titleContent do not exceed one of the following thresholds depending on the nature of your business
- For business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €188,700.
- For service activities and if you are a professional, the threshold is €77,700.
If the activity is created during the year, the thresholds must be adjusted to pro rata temporis operating, except in the case of seasonal companies.
In the case of mixed activity (sale and provision of services), the following two thresholds shall not be exceeded:
- The CAHT: titleContent global (CAHT: titleContent sale + CAHT: titleContent provision of services) must not exceed €188,700
- The CAHT: titleContent relating to the provision of services shall not exceed €77,700
If your turnover exceeds these thresholds, you cannot benefit from the micro-company scheme.
Your social contributions and contributions are calculated according to the turnover or revenue you generate.
What is the amount of your social security contributions?
The amount is calculated by applying a flat rate to the turnover (or revenue) actually collected: if your turnover or the amount of your revenue is equal to €0No, there's no levy.
The social contributions included in the contribution rate are as follows:
- Sickness and maternity insurance contribution
- Contribution of family allowances
- CSG/CRDS (generalized social contribution/contribution to social debt repayment)
- Disability-Death Contribution
- Basic and supplementary pension contributions.
You must report for each period the amount of actual revenue cashed, and not invoiced.
Activities concerned | Social security contributions in 2023 |
---|---|
Sale of goods and provision of accommodation (except furnished dwelling and furnished tourist dwellings) | 12.3% |
Rental of furnished dwelling | 21.2% |
Rental of furnished tourist accommodation | 6% |
Provision of services (including rental of furnished accommodation) | 21.2% |
Professions | 21.2% |
For example, a monthly turnover of €3,500 made when goods are sold gives rise to a payment of €430.5contributions and social contributions under the simplified micro-social scheme.
Calculation: €3,500 x 12.3% = €430.5.
If you carry out several activities in different categories, each activity has its own contribution rate. Your statement should include a breakdown of turnover by separate activity.
If you are at the beginning of your activity, you can accumulate your status with the device company creation or takeover assistance (Acre) to benefit from reduced social contribution rates.
The micro-social scheme allows you to benefit from the following advantages:
- Allowances for sickness or maternity
- Access to vocational training (however, to benefit from it, you must pay a contribution),
- Pension entitlements, depending on the amount of contributions paid
The micro-social scheme does not allow you to receive unemployment benefits from Pôle emploi.
FYI
the lump sum payment shall not take account of the contribution to vocational training this is in addition to the social contributions paid under the micro-social scheme.
You can request that your contributions not be less than minimum amount of social contributions.
You need to address your request with theUrssaf: titleContent (or general social security funds overseas) before one of the following dates depending on your situation:
- No later than 31 December from the year before the year for which you want this option to be applied
- If you start your activity, no later than the last day of the 3e months after creation on your company
This option applies until you decide to report it before the December 31 from the year before the year for which you want the option to no longer apply. Such information shall be submitted to theUrssaf: titleContent or general social security funds.
How to declare and pay your social contributions?
You must declare your sales in a monthly or quarterly (depending on your choice) to allow the calculation of your social contributions.
The declaration of turnover and the payment of social contributions must be made via your account on the site www.autoentreprneur.urssaf.fr:
Micro-entrepreneurs: online turnover reporting (simplified micro-social scheme)
You pay your social security contributions as you earn your income.
If your turnover is zero, you do not have to pay social security contributions. However, if you have chosen the option for minimum contributions, even if your turnover is zero, you will have to pay contributions. These are the premiums you pay to be able to take advantage of certain guarantees. For example, per diems.
Who can help me?
Find who can answer your questions in your region
- General Tax Code: Article 50-0Tax treatment of micro-companies
- General Tax Code: Article 151-0Discharge payment for individual operators
- General Tax Code: Articles 302f AA to 302f AB
- General Tax Code: Articles 1586b to 1586hCVAE turnover
- Social Security Code: Article D613-5
- Social Security Code: Articles L613-7 to L613-10Micro-social scheme
- Decree No. 2017-1894 of 30 December 2017 on the calculation and exemptions from social security contributions of self-employed persons
- Circular n°2013-009 of 19 February 2013 on penalties for non-declaration of turnover of self-employed entrepreneurs (PDF - 100.8 KB)
FAQ
- Accounting obligations of the micro-entrepreneur
- Company Property Tax (CFE)
- Company Value Added Tax (VAE)
- VAT exemption
- Company Creation or Recovery Assistance (Acre)
- Income tax - Withholding taxService-Public.fr
- Microcompany FAQMinistry of Economy
- Micro-entrepreneur guide 2022Urssaf
- The social scheme of the micro-entrepreneur (self-entrepreneur)Bpifrance Creation
- Withholding tax: how does this work for the self-employed?Ministry of Economy
- Application for an option for the calculation of micro-entrepreneurs' social security contributionsUrssaf
- Micro-entrepreneur thresholds (Simulator)Bpifrance Creation