If one chooses the tax regime of the micro-enterprise, the auto-entrepreneur must then be subject to income tax in the category of industrial and commercial profits (micro-BIC) if he exercises a commercial activity or craft or to income tax in the category of non-commercial profits (micro-BNC if he exercises a liberal activity. The amount of tax payable by the auto-entrepreneur is calculated from the flat-rate profit determined by tax administration and other income of the tax household which is subject to progressive scale by income tax brackets.
How the Entrepreneur Would Submit Tax
When declaring his taxes, the auto-entrepreneur must simply inform on the supplementary income declaration the amount of his turnover (BIC) or his receipts (BNC), as well as his plus- and minus values from the sale of assets used in operations. The use of the tax filing services comes useful there.
By default, the withholding tax applies. Income from the activity of micro-entrepreneur gives rise to a payment of contemporary installments taken from the bank account monthly or quarterly. But the micro-entrepreneur can also opt for a payment in discharge of the income tax which makes it possible to settle, in a single social and fiscal payment, both the income tax and the compulsory contributions. However, this option is only available for micro-entrepreneurs whose reference tax income for year N-2 is less than or equal to a threshold calculated according to the family quotient (27,519 euros for a single person, 55,038 euros for a couple,68,787.5 for a couple with one child, 82,557 euros for a couple with two children).
- The effective rate of the discharge payment applicable in 2020 is 13.8% for the activities of purchase / resale of goods, sale of food to be consumed on site and accommodation services (BIC); 23.7% for artisanal and commercial services (BIC / BNC); 24.2% for liberal activities.
The auto-entrepreneur and the simplified micro-social system
On condition that the turnover actually collected during the calendar year does not exceed 176,200 euros for the activities of trade and provision of accommodation (hotels, guest rooms, rural lodgings classified as furnished tourist accommodation, furnished of tourism) or 72,500 euros for the provision of services and liberal professions falling under the BNC or the BIC, the auto-entrepreneur can choose the simplified micro-social regime. The latter allows the self-employed to be subject to the general scheme, on the same basis as employees. Social contributions and contributions are based on the turnover or the insured income.
The entrepreneur declare his turnover monthly or quarterly (according to choice) to allow the calculation of social contributions and contributions. Entrepreneurs under the micro-enterprise tax regime do not have to transmit the self-employed social declaration (DSI) annually.
The Tax Declaration Option
The social and tax rate depends on the type of activity carried out by the auto-entrepreneur: 12% for the sale of goods and provision of accommodation, 6% for the rental of furnished tourist lodging, 22% in other cases, to which must be added the influence to vocational training.
The option for the final payment of income tax is not always advantageous for the self-employed person. It is up to him to choose the most advantageous tax regime given the situation of his self-employed business.