Tax Regime for Micro-Entrepreneurs in France (2025)

If you operate as a micro-entrepreneur in France, your business is subject to the micro-tax regime for income tax purposes and the micro-social regime for social security contributions. This article focuses on the tax side of the system. For more on the micro-social system, refer to the relevant official documentation.

Eligibility for the Micro-Tax Regime

To qualify for the micro-tax system, your annual turnover (excluding VAT) must stay below certain thresholds, which vary depending on the nature of your activity:

Turnover Thresholds for 2025 (applicable to income declared in 2026)

• Commercial and accommodation activities: up to €188,700

• Provision of services (BIC) or liberal professions (BNC): up to €77,700

• Rental of unclassified furnished tourist accommodation: up to €15,000

• Rental of classified tourist accommodation: up to €77,700

Mixed activities (e.g., selling products + services) are allowed as long as:

• The total turnover does not exceed €188,700

• The portion attributed to services does not exceed €77,700

If you exceed any of these limits, you lose eligibility for the micro-enterprise regime starting the following year.

Note: For new businesses created mid-year, these thresholds are adjusted on a pro-rata basis—except for seasonal operations.

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How the Micro-Tax System Works

As a micro-entrepreneur, you pay personal income tax (IR) on your business profits under one of two options:

1. The standard micro-tax system

2. The optional flat-rate tax payment (prélèvement libératoire)

The Standard Micro-Tax System

Under this regime:

• You report your gross turnover on the supplementary income tax return (Form 2042-C PRO).

• You don’t need to file a profit-and-loss statement.

• The taxable income is calculated automatically by the tax authorities by applying a fixed percentage reduction(abattement forfaitaire), depending on your activity:

You must also provide:

• Your marital status

• Business address

• SIRET number

• Nature of activity (BIC or BNC)

The net taxable income is added to your total household income and taxed under the standard income tax brackets, with withholding at source (prélèvement à la source).

Optional Flat-Rate Tax Payment (Prélèvement Libératoire)

As an alternative, micro-entrepreneurs can opt for a flat-rate system that allows them to pay both income tax and social contributions at the same time, based on turnover.

Conditions for Eligibility

You can only opt in if your reference tax income (revenu fiscal de référence) from two years prior falls below a specific threshold, depending on household size:

If your RFR is higher, you are not eligible for this payment method.

Applicable Tax Rates (in addition to social contributions)

Social Contribution Rates

These combined rates are applied directly to your monthly or quarterly turnover, declared via the portal autoentrepreneur.urssaf.fr.

If your turnover is €0, you owe no tax or social contributions, but you must still file a declaration with a value of zero.

How to Opt In

You must notify URSSAF (or CGSS if overseas) of your intention to opt for the flat-rate tax payment by one of the following deadlines:

• Before 30 September of the year preceding the year the option takes effect
  (e.g. opt before 30 Sept 2024 for 2025 income)

• Within 3 months of starting your business
  (e.g. business created in September → opt before 30 November)

Once opted in, you’ll need to report your turnover under the “Micro-entrepreneurs with flat-rate tax payment”section of Form 2042-C PRO.

⚠️ You may also need to adjust or cancel your income tax withholding installments via your personal account on impots.gouv.fr under “Gérer mon prélèvement à la source”.

How to Exit the Flat-Rate Option

You can revoke your choice by:

• Submitting a formal request to URSSAF (or CGSS) before 30 September of the year before you want the change to take effect.

You are automatically excluded if:

• You exceed the turnover limits for the micro-enterprise regime.

• You no longer meet the income conditions to be eligible for the flat-rate tax payment.