Tax treatment of micro-company

Verified 01 January 2025 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

As a micro-entrepreneur, you are subject to the so-called “micro-tax system”. You are also subject to the micro-social scheme as regards your social contributions and contributions. To learn more about the micro-social scheme, you can consult the corresponding card.

To be subject to the micro-company regime, you must not exceed a certain amount of turnover HT: titleContent. The threshold varies depending on the activity you're doing.

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Commercial and accommodation activity

You are subject to the micro-company regime if your turnover does not exceed €188,700.

BIC Service Delivery Activity

You are subject to the micro-company regime if your turnover does not exceed €77,700.

Tourist furniture rental activity

Furnished tourism classified

The turnover threshold (turnover threshold) to benefit from the micro-company scheme for the rental of classified tourist furniture changes between 2024 and 2025.

2024 revenues

You are subject to the micro-company regime if your turnover for the rental of classified tourist furniture does not exceed €188,700.

2025 revenues

You are subject to the micro-company regime if your turnover does not exceed €77,700.

Furnished tourism unclassified

The turnover threshold (turnover threshold) to benefit from the micro-company scheme for the rental of unclassified tourist furniture changes between 2024 and 2025.

2024 revenues

You are subject to the micro-company regime if your turnover for the rental of unclassified tourist furniture does not exceed €77,700.

2025 revenues

You are subject to the micro-company regime if your turnover does not exceed €15,000.

Liberal activity

You are subject to the micro-company regime if your turnover does not exceed €77,700.

The micro-entrepreneur can carry out several types of activities (for example: the hairdresser has an artisanal hairdressing activity and a commercial activity for the sale of care products):mixed activity.

In this case, the CAHT: titleContent global shall not exceed €188,700.

In addition, the CAHT generated in each activity shall not exceed the threshold corresponding to it:

  • For 2024 revenues (reported in 2025):
    • The HVAC for the rental of unclassified tourist furniture shall not exceed €15,000
    • The HVAC for the rental of classified tourist furniture shall not exceed €188,700
    • The CAHT for the provision of services shall not exceed €77,700
  • For 2025 income (reported in 2026):
    • The HVAC for the rental of unclassified tourist furniture shall not exceed €15,000
    • The HVAC for the rental of classified tourist furniture shall not exceed €77,700
    • The CAHT for the provision of services shall not exceed €77,700

If your turnover overshoot one of these thresholds, you cannot not to benefit from the micro-company scheme.

FYI  

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.

You are taxed on income tax (IR) either under the traditional micro-company tax system or under the discharge payment.

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

  • 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 (No 2042-C Pro) :

  • The annual amount of your gross turnover (BIC) must be indicated in the section “Professional industrial and commercial income”.
  • The amount of your revenues (NBC) must 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":

  • Marital status
  • Address of your main establishment
  • Your Siret number
  • Nature of realized income (BIC or NBC)

Taxable profit is determined by the tax administration. It shall apply to the declared turnover a lump-sum allowance. It varies according to the activity carried out.

The reduction may not be less than €305.

Once calculated, taxable profit is subject to income tax (IR) with other income from the tax household. The tax is levied at source.

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Commercial and accommodation activity

The abatement rate is 71%.

Example :

You are engaged in a sales activity and you have a turnover excluding tax of €175,000 in 2024.

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.

BIC Service Delivery Activity

The abatement rate is 50%.

Example :

You are engaged in a service activity in BICs and you have a turnover excluding tax of €65,000 in 2024.

The calculation of the allowance is as follows: €65,000 x 51% = €33,150

The taxable net profit is therefore: €65,000 - €33,150 = €31,850.

Activity of renting furnished tourist accommodation (classified and unclassified)

Classified tourist furniture

For income for 2024, reported in 2025, the rebate rate applicable to the rental of classified tourist furniture is 71%.

For income for 2025, reported in 2026, the rebate rate applicable to the rental of furnished tourism classified is 50%.

Example :

You are engaged in a business of renting furnished tourist accommodation classified in a geographical area characterized by a significant imbalance between the supply and demand of accommodation and you achieve a turnover excluding tax of €8,500 in 2024.

The calculation of the allowance is as follows: €8,500 x 71% = €6,035

The taxable net profit is therefore: €8,500 - €6,035 = €2,465.

Unclassified Tourist Furniture

For income for 2024, reported in 2025, the rebate rate applicable to the rental of unclassified furniture is 50%.

For 2025 income, reported in 2026, the rebate rate applicable to the rental of unclassified furniture is 30%.

Example :

You are engaged in a business of renting furnished tourist accommodation classified in a geographical area characterized by a significant imbalance between the supply and demand of accommodation and you achieve a turnover excluding tax of €8,500 in 2024.

The calculation of the allowance is as follows: €8,500 x 50% = €4,250

The taxable net profit is therefore: €8,500 - €4,250 = €4,250.

Liberal Activity (BNC)

The abatement rate is 34%.

Example :

You are in a liberal business and you have a tax-free turnover of €65,000 in 2024.

The calculation of the allowance is as follows: €65,000 x 34% = €22,100

The taxable net profit is therefore: €65,000 - €22,100 = €42,900.

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 discharged if you meet certain conditions. It allows you to pay your taxes and social contributions at the same time.

To opt for the final payment, you must have a tax reference 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, €28,797
  • If you are in a couple and on the same tax household, €57,594
  • If you are a couple in the same tax home with 1 child, €71,992.5
  • If you are a couple in the same tax home with 2 children, €86,391

If you exceed threshold which corresponds to your situation, you do not can't opt in for payment on discharge.

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 with a service provision activity in BICs, at 21.2% of the CAHT: titleContent
  • For companies engaged in a liberal activity:
    • If the professional does not depend on the Cipav: titleContent : 24.6% of the CAHT: titleContent
    • If the professional depends on the Cipav: titleContent: 23.2% of the CAHT: titleContent

You must deposit your monthly or quarterly turnover 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 preceding year the one for which you are requesting the discharge payment. If you apply before September 30, 2024, the final payment applies to income received on or after the firster January 2025.
  • If you start your business, before the end of 3e month after the month of creation on your company. If you started your business in September 2025, you must apply for your discharge before November 30, 2025.

In case of an option for the discharge, you must address the supplementary income tax return (No 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 denunciation shall be made in the same manner as the request for an option. You must contact the Urssaf or the general social security funds no later than September 30 of the year preceding the year for which you no longer wish the option to apply.

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

  • You are 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.

Depending on whether you generate micro-BICs or micro-BNCs, you can opt for the normal effective tax regime at different times.

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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:

  • During 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 extended for a new year as long as you remain within the scope of the micro-company tax system, that is to say, 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 tax return 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 of changing the tax regime and opting for the controlled declaration regime.

The option must be requested from the company Tax Office (SIE) by one of the following dates depending on your situation:

  • During 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
Who shall I contact

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 tax return the one for which you want to waive the option.

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