Taxation of a micro-entrepreneur: what you need to know

Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Warning  

Pending the adoption of a budget for 2026, a special law no. 2025-1316 of 26 december 2025 ensures the operation of public services. It extends the 2025 budget provisions until the adoption of a 2026 budget law.

In the context of the parliamentary debates on the 2026 budget, the freezing of income is envisaged, with the exception of the first tranche (rate of 11% ), the upper limit of which would be increased by €11,497 à €11,612  in order to index it to inflation. At this stage, therefore, this development does not constitute a legislative provision in force.

In the meantime, the information presented in this sheet remains valid.

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You are engaged in a commercial or craft activity

You are automatically subject to the micro-dietBIC: titleContent income tax, but you can apply to be taxed at normal real income tax system.

In micro-BIC mode, you are automatically taken at source unless you opt for the discharge payment. This election is possible when your tax income for year N-2 does not exceed one of the following thresholds depending on your family situation:

  • If you are a single person, €28,797
  • If you are in a couple and on the same tax home, €57,594
  • If you are in a couple on 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
Micro BIC scheme: discharging payment
2024 revenues, reported in 2025

In this case, you pay your tax (and your social security contributions) in a single installment.

You can opt for the discharge payment depending on your situation on the following dates:

  • If you start your activity, before the 3rde the month after your company was created
  • Before 30 September of the year preceding the year for which you wish the option to be exercised.

The timing of your tax return depends on your situation:

  • This is your first statement:
    • You have chosen the monthly payment: you must file your return on the last day of the 3rde month after the month in which you started your business
    • You have chosen the quarterly payment: you must file your return on the last day of 6e month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment: you must file your return at the end of the following month
    • You have chosen the quarterly payment: you must file your return on April 30, July 31, October 31 and January 31

You do not have to provide a professional profit statement. You must indicate your turnover atUrssaf: titleContent using your supplementary income tax return (No. 2042-C Pro):

Supplementary declaration of income of self-employed professions

Who shall I contact

You must indicate your turnover in the "Micro-entrepreneur who opted for the withholding of income tax".

In micro-BIC mode, a abatement flat rate is applied to your turnover, depending on the nature of your activity:

  • 71% of your CA for your activities of purchase-resale or provision of housing (including rental of furnished tourism classified)
  • 50% of your turnover for other activities (including rental of furnished tourism not classified)
2025 revenues, reported in 2026

In this case, you pay your tax (and your social security contributions) in a single installment.

You can opt for the discharge payment depending on your situation on the following dates:

  • If you start your activity, before the 3rde the month after your company was created
  • Before 30 September of the year preceding the year for which you wish the option to be exercised.

The timing of your tax return depends on your situation:

  • This is your first statement:
    • You have chosen the monthly payment: you must file your return on the last day of the 3rde month after the month in which you started your business
    • You have chosen the quarterly payment: you must file your return on the last day of 6e month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment: you must file your return at the end of the following month
    • You have chosen the quarterly payment: you must file your return on April 30, July 31, October 31 and January 31

You do not have to provide a professional profit statement. You must indicate your turnover atUrssaf: titleContent using your supplementary income tax return (No. 2042-C Pro):

Supplementary declaration of income of self-employed professions

Who shall I contact

You must indicate your turnover in the "Micro-entrepreneur who opted for the withholding of income tax".

In micro-BIC mode, a abatement flat rate is applied to your turnover, depending on the nature of your activity:

  • 71% of your turnover for your activities of purchase-resale or provision of housing (excluding rental of furnished accommodation)
  • 50% of your CA for other activities (including rental of classified tourist furniture)
  • 30% of your CA for the rental of furnished tourism not classified.
Micro-BIC regime: withholding at source
2024 revenues, reported in 2025

Each month or quarter, a down payment is taken directly from your bank account.

You must file your tax return before one of the following dates depending on your situation:

  • This is your first statement:
    • You have chosen the monthly payment: you must file your return on the last day of the 3rde month after the month in which you started your business
    • You have chosen the quarterly payment: you must file your return on the last day of 6e month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment: you must file your return at the end of the following month
    • You have chosen the quarterly payment: you must file your return on April 30, July 31, October 31 and January 31

You do not have to provide a professional profit statement. You must indicate your turnover atUrssaf: titleContent using your supplementary income tax return (No. 2042-C Pro):

Supplementary declaration of income of self-employed professions

Who shall I contact

In micro-BIC mode, a abatement flat rate is applied to your turnover, depending on the nature of your activity:

  • 71% of your CA for your activities of purchase-resale or provision of housing (including rental of furnished tourism classified)
  • 50% of your turnover for other activities (including rental of furnished tourism not classified)
2025 revenues, reported in 2026

Each month or quarter, a down payment is taken directly from your bank account.

You must file your tax return before one of the following dates depending on your situation:

  • This is your first statement:
    • You have chosen the monthly payment: you must file your return on the last day of the 3rde month after the month in which you started your business
    • You have chosen the quarterly payment: you must file your return on the last day of 6e month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment: you must file your return at the end of the following month
    • You have chosen the quarterly payment: you must file your return on April 30, July 31, October 31 and January 31

You do not have to provide a professional profit statement. You must indicate your turnover atUrssaf: titleContent using your supplementary income tax return (No. 2042-C Pro):

Supplementary declaration of income of self-employed professions

Who shall I contact

In micro-BIC mode, a abatement flat rate is applied to your turnover, depending on the nature of your activity:

  • 71% of your turnover for your activities of purchase-resale or provision of housing (excluding rental of furnished accommodation)
  • 50% of your CA for other activities (including rental of classified tourist furniture)
  • 30% of your CA for the rental of furnished tourism not classified.
Normal real speed

You must file your tax return before the 2nde working day after 1er May.

You do not have to provide a professional profit statement. You must indicate your turnover atUrssaf: titleContent using your supplementary income tax return (No. 2042-C Pro):

Supplementary declaration of income of self-employed professions

Who shall I contact

In micro-BIC mode, a abatement flat rate is applied to your turnover, depending on the nature of your activity:

  • 71% of your CA for your activities of purchase-resale or provision of housing (for furnished rentals, this only concerns furnished rentals for tourism and bed and breakfast)
  • 50% of your Board for other activities

You are a liberal

You are automatically subject to the micro-dietNCB: titleContent income tax, but you can apply to be taxed at normal real income tax system.

In micro-BNC mode, you are automatically taken at source unless you opt for the discharge payment . This election is possible when your tax income for year N-2 does not exceed one of the following thresholds depending on your family situation:

  • If you are a single person, €28,797
  • If you are in a couple and on the same tax home, €57,594
  • If you are in a couple on 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
Micro-BNC scheme: discharge

In this case, you pay your tax (and your social security contributions) in a single installment.

You can opt for the discharge payment on any of the following dates depending on your situation:

  • Before 30 September of the year preceding the year for which you wish the option to be exercised.
  • If you start your activity, before the 3rde the month after your company was created

You must file your tax return before one of the following dates depending on your situation:

  • This is your first statement:
    • You have chosen the monthly payment: you must file your return on the last day of the 3rde month after the month in which you started your business
    • You have chosen the quarterly payment: you must file your return on the last day of 6e month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment: you must file your return at the end of the following month
    • You have chosen the quarterly payment: you must file your return on April 30, July 31, October 31 and January 31

You must declare your turnover to theUrssaf: titleContent using the following form:

Supplementary declaration of income of self-employed professions

Who shall I contact

You must indicate your turnover in the "Micro-entrepreneur who opted for the withholding of income tax".

Under the micro-BNC scheme, a flat-rate reduction of 34% is applied to your turnover.

Micro-BNC regime: withholding at source

Each month or quarter, a down payment is taken directly from your bank account.

You must file your tax return before one of the following dates depending on your situation:

  • This is your first statement:
    • You have chosen the monthly payment, you must make your declaration on the last day of the third month following the month in which you started your activity
    • You have chosen the quarterly payment, you must file your return on the last day of 6th month following the month in which you started your business
  • This is not your first statement:
    • You have chosen the monthly payment, you must file your return at the end of the following month
    • You have chosen the quarterly payment you will have to file your return on April 30, July 31, October 31 and January 31

You must declare your turnover to theUrssaf: titleContent using the following form:

Supplementary declaration of income of self-employed professions

Who shall I contact

Under the micro-BNC scheme, a flat-rate reduction of 34% is applied to your turnover.

Regime of controlled reporting

You must opt for a tax under the controlled return plan before the 2e working day next to 1er May. You must also file your tax return by that date.

FYI  

When you file your return online, you have a additional 15 days.

You must declare your turnover to theUrssaf: titleContent using the following form:

Supplementary declaration of income of self-employed professions

You must also contact your NCO results reporting.

Who shall I contact

You can be subject to payment a number of taxes, including:

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

Depending on its turnover and its annual amount of your VAT, a micro-company will be subject to a different VAT regime:

  • It is subject to the exemption from VAT if it has a turnover HT: titleContent less than €37,500 for the provision of services or less than €85,000 for trade and accommodation activities.

Please note

Pending the adoption of a budget for 2026, the special law no. 2025-1316 of 26 december 2025 ensures the operation of public services. It extends the 2025 budget and tax provisions until the adoption of a 2026 budget law.

In the meantime, the information presented in this sheet, and in particular the thresholds concerning the exemption from VAT in France, remain valid.

The content of this page will be updated after the publication of the Finance Act in the Official Journal.

It shall be subject to simplified real regime if it has a turnover HT: titleContent between €37,500 and €254,000 for the provision of services or between €85,000 and €840,000 for trade and accommodation activities. The annual amount of VAT must be less than €15,000.

Warning  

The application thresholds of the simplified real regime shall be reassessed from 1er January 2026. However, their amount will be set by the Finance Law for 2026. This law must be passed in the coming weeks.

In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.

  • It shall be subject to normal real speed in one of the following 2 cases:
    • Turnover HT: titleContent greater than €254,000 for the provision of services or more than €840,000 for trade and housing supply activities.
    • Annual amount of VAT greater than €15,000 even if the amount of turnover HT: titleContent is within the limits of the thresholds of the simplified real regime.

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Exemption based on VAT

The business is not subject to VAT.

Simplified real regime

The declaration must be made no later than 2e working day next to 1er May.

VAT must be paid in two installments:

  • 1er prepayment of 55% in July
  • 2nd prepayment of 40% in December

The outstanding amount is payable at the time of the next year's return.

The declaration and payment must be made by dematerialized means:

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

Online tax account for professionals (EFI mode)

Normal real speed

The declaration and payment of VAT are to be made every month for the VAT of the previous month by dematerialized means:

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

Online tax account for professionals (EFI mode)

CFE

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

Depending on the contractor's activity and location, it may be temporarily or permanently exempt from the CFE.

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

  • It has a turnover or revenue greater than €5,000
  • He habitually pursues a self-employed professional activity

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

Initial Declaration 1447-C-SD (CFE)

Who shall I contact

Other specific taxes can be added as the local tax on outdoor advertising (TLPE)or the preventive archeology tax (PAT) for example.

If you are a micro-entrepreneur, you have the opportunity to benefit fromtax relief and tax credits.

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

At the time of creating your company, you can benefit of tax exemptions over a short period. This is the case for the company property tax (CFE).

During the completion of the formalities related to its tax system, a number of vocabulary words and concepts specific to the tax field.

We present you a list of words and notions that you will be likely to find often, with their definition:

  • Abatement : Lump-sum or proportional reduction applied on the basis of a tax calculation (income, value of property, etc.)
  • Subjugation : Be compelled to pay something (e.g., have to pay business tax)
  • Turnover : Sum of sales of goods or services of a company in an accounting period
  • Controlled reporting : Non-commercial profit reporting scheme with a value greater than €77,700 HT: titleContent
  • Relief : Partial or total remission of tax
  • Fiscal year : The period during which a company records each economic fact in the course of its activities. An accounting year is generally spread over 12 months
  • Exemption : Exemption from payment of tax
  • Exemption based on VAT : A special scheme which exempts the company from declaring and paying VAT on the services or sales it makes
  • Income tax : Tax calculated and levied on income, profits and capital gains
  • Collections : Payment of a tax
  • Micro-fiscal regime : Special tax regime applicable to sole proprietorships whose turnover HT: titleContent does not exceed certain thresholds
  • Normal real speed : Taxation regime that applies to profits and VAT. It is applicable to companies with a turnover HT: titleContent above certain thresholds
  • Simplified real regime : Tax regime that applies to profits and VAT. It is applicable to companies that generate 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
  • Active : All the assets and rights that constitute the assets of a company (machinery, treasury, stock, etc.)
  • Depreciation : Loss of value of a company asset due to wear and tear and time
  • Agricultural Profits (BA) : Income from an agricultural holding. Farm profits are subject to income tax.
  • Industrial and Commercial Benefits (BIC) : Profits made by a person engaged in a commercial, industrial or craft activity
  • Non-Commercial Earnings (NCB) : Profits made by a person exercising a non-commercial professional activity (liberal profession, copyright, etc.)
  • Dividends : Payment of money or shares of a company to its shareholders
  • Fixed assets : They are of three types (property, plant and equipment, intangible assets and financial assets) and correspond to non-expendable property held by the company. These may be, for example, business assets, patents, office equipment, long-term financial securities, etc.
  • Corporate tax : Tax calculated and levied on the company's annual income
  • Tax book : All tax returns (balance sheet, income statement, supporting documents) submitted by a company
  • Passive : It consists of equity (fixed liability) and debt (current liability)
  • Capital gain/capital loss : Positive or negative difference between the purchase price and the sale price of real estate or movable property
  • Income from movable capital : Income from securities (shares, shares, bonds, etc.)

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