What are the consequences for a micro-entrepreneur who exceeds the turnover thresholds?
Verified 01 January 2023 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Economy
The micro-entrepreneur status applies as long as your annual turnover (actually cashed in during calendar year) does not exceed the thresholds of the micro-company tax regime.
Revenue thresholds HT: titleContent the speed of the micro-company depends on the activity you perform.
In the first year of operation, the AC: titleContent HT taken into account to find an overrun will be calculated based on the number of days your company exists.
For example, if the company has been in existence since January 31, 2022, then 334 days will remain until December 31, 2022. The threshold not to be exceeded shall be calculated as follows: (€176,200 x 334) / 365 =€161,235.
This adjustment is called prorate temporis of the N-year duty-free turnover (1mother year of existence). Revenue excluding tax is used as the base year for subsequent years.
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Commercial and hosting activity
Revenue threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €176,200.
If you exceed this threshold, you move to the real simplified tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €188,700.
If you exceed this threshold, you move to the real simplified tax system.
Service delivery activity (including rural non-tourist furnished accommodation)
Revenue threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €72,600.
If you exceed this threshold, you move to the real simplified tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €77,700.
If you exceed this threshold, you move to the real simplified tax system.
Liberal activity
Revenue threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €72,600.
If you exceed this threshold, you move to the real simplified tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €77,700.
If you exceed this threshold, you move to the real simplified tax system.
At time of creation on your company, you are automatically subject to micro-company for the first 2 years of your life.
If you wish to be subject to the actual tax regime, you must opt to benefit from this plan when you create your company. This option must be taken when you first report results.
If you exceed the revenue thresholds of the micro-company regime for 2 consecutive years, you move to the real simplified tax regime. This change of regime takes place on 1to January of the year following 2e the year you exceeded the threshold.
If you exceed the micro-company thresholds for only one year, you remain subject to the micro-company regime.
Example :
You start your business company on May 8, 2023 and have a turnover greater than €122,526 the first year.
If you exceed the €188,700 in 2024, then you will be out of the micro-company regime and you will be subject to the real tax regime from the 1stto January 2025.
However, if you are below the threshold in 2024, even if you exceeded the threshold in 2023, you will continue to benefit from the micro-company regime in 2025.
When you have exceeded the micro-company tax-free threshold (for 2 consecutive years), then you switch to the social and tax regime applicable to a individual business:
- Taxation at simplified real profit tax regime (commercial, craft or industrial activity) or controlled statement (liberal activity) from 1to January following the year of the overrun
- Social system of self-employed workers, from 1to January following the year of exceedance
FYI
The micro-social regime shall apply until 31 December of the year in which the turnover threshold was exceeded.
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