We present you a list of words and concepts that you will find often, with their definition:

• Abatement : Flat-rate or proportional reduction applied on the basis of a tax calculation (income, value of property, etc.)
• Subjugation : Being compelled to pay something (for example, having to pay business tax)
• Turnover : Sum of a company's sales of goods or services in an accounting year
• Controlled Declaration : Reporting scheme for non-commercial profits above €77,700 HT: titleContent
• Relief : Partial or total remission of a tax
• Fiscal year : The period during which a company records each economic event in the course of its activities. An accounting period generally lasts for 12 months
• Exemption : Exemption from payment of tax
• VAT exemption : Special scheme which exempts the company from declaring and paying VAT on supplies or sales made by it
• Income tax : Tax calculated and levied on income, profits and capital gains
• Recovery : Payment of a tax
• Micro-tax system : Special tax arrangements for individual companies whose turnover HT: titleContent does not exceed certain thresholds
• Normal Actual Speed : Taxation regime that applies to profits and VAT. It applies to companies with a turnover HT: titleContent above certain thresholds
• Simplified real regime : Taxation regime that applies to profits and VAT. It applies to companies with a turnover HT: titleContent between 2 thresholds.
• VAT : Tax that is not directly collected by the State. This tax is added to the price of all products to which it applies

As an individual entrepreneur, you are automatically subject to the income tax system (general case). However, you can decide to be subject to business tax by opting to be assimilated EURL.

A sole trader may be subject to payment of a number of taxes, including:

• Value added tax (VAT)
• Company Property Tax (CFE)
• Company Value Added Tax (VAE)

VAT

Depending on the turnover and the annual amount of VAT that the entrepreneur carries out, he will be subject to a different VAT regime:

• It shall be subject to the exemption from VAT if he realizes a turnover HT: titleContent less than €36,800 for the provision of services or less than €91,900 for trade and accommodation activities.
• It shall be subject to the simplified real regime if he has a turnover HT: titleContent between €36,800 and €254,000 for the provision of services or between€91,900 and €840,000 for trade and accommodation activities. The annual amount of VAT must be less than €15,000.
• It shall be subject to the normal real speed in one of the following 2 cases:
  
  • If he has a turnover HT: titleContent greater than €254,000 for the provision of services or€840,000 for trading and providing housing
  • If the annual amount of VAT is more than €15,000 even if the amount of turnover HT: titleContent is within the limits of the thresholds of the real simplified procedure

CFE

A new entrepreneur is not liable to the CFE in the year of its creation and it benefits from a reduction on 1^re taxation year.

Depending on the activity of the entrepreneur and where he is located, it is possible that he is temporarily or permanently exempt from the EWC.

The CFE is payable by the contractor who fulfills the following conditions:

• It has a turnover or revenue exceeding €5,000
• She habitually pursues a self-employed occupation

The contractor must make an initial declaration no later than 31 December of the year of creation at the companies tax office of the place of its registered office:

Initial Declaration 1447-C-SD (CFE)

CVAE

A new entrepreneur is not liable to the CVAE in the year of its creation. On the other hand, it is liable to the CVAE from the first year if it is a transfer of activity.

The CVAE is due by the contractor who meets the following 2 conditions:

• He does more than €500,000turnover HT: titleContent
• He is engaged in gainful and habitual self-employment

If the entrepreneur has a turnover higher than €152,500, he must make a declaration of added value and staff numbers even if it is not necessarily subject to the payment of the CVAE.

The declaration is to be made on 2^e working day following 1^er May by dematerialized means:

• Through an EDI (electronic data interchange) partner (EDI-TDFC mode)
• If you are subject to the real simplified regime, directly from your subscriber area on the impots.gouv.fr website (electronic form exchange or EFI)
  
  Online tax account for professionals (EFI mode)

The payment of the CVAE is made by means of 2 installments each corresponding to 50% of the contribution due where it is more than €1,500 :

• 1^er deposit payable no later than 15 June of the taxation year
• 2^e deposit payable no later than 15 September of the taxation year

A declaration of winding-up and regularization shall then be lodged, no later than 2^e working day after 1^er May of the year following the taxation year.

These payments and the winding-up declaration shall be made by dematerialization with the same intermediaries as the declaration (EDI or EFI).

You have the opportunity to benefit fromtax relief and tax credits.

There are several tax breaks that will depend on either your business, or oflocation of your head office, oractions you will take :

• Tax benefits related to theplace where your head office is located :
  
  • Tax Relief in Priority City Areas (QPV)
  • Employment pool to be revitalized (BER)
  • Urban basin to be dynamized (BUD)
• Tax benefits related to theactivity : tax credit for crafts
• Tax benefits related to thehiring of employees :
  
  • Tax relief for competitiveness and employment
  • Sustainable mobility package
• Tax benefits related to actions you take :
  
  • Family Tax Credit
  • Innovation Tax Credit (ITC)
  • Research Tax Credit (RIC)
  • Tax credit for companies carrying out energy retrofits
  • Tax deduction for the purchase of works of art
  • Young innovative or academic company (JEI-JEU)
  • Tax reduction following donation to non-profit organization