Tax Treatment of Micro-Enterprises in France

As a micro-entrepreneur in France, you fall under the micro-tax regime for income tax and the micro-social regimefor social security contributions. Below is an overview of how the micro-tax system works, the thresholds that apply, and the optional simplified tax payment method known as the “versement libératoire.”

Eligibility for the Micro-Tax Regime

To benefit from the micro-enterprise tax regime, your annual turnover (excluding VAT) must remain below certain thresholds, depending on the nature of your activity:

1. Commercial or Accommodation Activities

• Turnover must not exceed €188,700.

• For mixed activities (e.g., product sales + services), the total turnover must not exceed €188,700, with each activity staying below its respective threshold:

Turnover Limits for 2024 (declared in 2025):

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

• Rental of classified tourist accommodation: €188,700

• Provision of services: €77,700

Turnover Limits for 2025 (declared in 2026):

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

• Rental of classified tourist accommodation: €77,700

• Provision of services: €77,700

⚠️ If any of these thresholds are exceeded, the micro-enterprise regime no longer applies.
If your activity starts mid-year, thresholds are pro-rated unless the business is seasonal.

Standard Micro-Tax System

Under the standard micro-tax system, your income tax is calculated based on your turnover, without the need to file a full profit-and-loss statement. Your activity determines the applicable category:

• Commercial, industrial, or craft activities: taxed under micro-BIC (Bénéfices Industriels et Commerciaux)

• Liberal or professional activities: taxed under micro-BNC (Bénéfices Non Commerciaux)

You must report:

• Your turnover on your supplementary income tax return (form 2042-C PRO)

• Any capital gains or losses

• Your personal details, business address, SIRET number, and whether the income is BIC or BNC

The tax authorities automatically apply a standard allowance to your declared turnover to calculate your taxable profit. The allowance varies by activity:

Example:

If you earn €175,000 in sales activity in 2024, your taxable profit is:
€175,000 – (€175,000 × 71%) = €50,750

For mixed activities, deductions are calculated separately for each income category. The minimum global deduction is €610.

Optional Flat-Rate Tax Payment (“Versement Libératoire”)

As a micro-entrepreneur, you can opt for a flat-rate payment system where income tax is paid at the same time as your social contributions. This option is available only if your household’s reference tax income from the year before last is under specific thresholds:

If eligible, the tax rate on your gross turnover is:

These rates are in addition to your social contributions, which vary:

Total tax + social contributions = flat, predictable charges
This system is not available if your reference income exceeds the thresholds.