Income Tax Solutions and the Entrepreneurs
Paradoxically, the income tax return (IR) is more complex for an Auto-Entrepreneur (or micro entrepreneur). It depends on the options selected. It is sometimes useful to benefit from the advice of a chartered accountant to avoid mistakes and save time. It is above all an opportunity to take stock of the relevance of the regime or possible optimizations.
What are the possible solutions?
The Auto-entrepreneur pays tax on the income generated by his activity (tax not included in the micro-social package). He can have the choice between an annual calculation when filing his income tax return, within the framework of the tax system of the micro-enterprise, or “micro fiscal” (fixed allowance on its turnover, deferred payment of the tax by in relation to the collection of receipts) for integration into its overall income, or choose the final tax payment (payment when declaring the receipts collected). Using the turbotax alternative is important there.
Who is affected by the final tax payment?
Anyone exercising an industrial, commercial, craft or liberal activity (covered by the old age insurance of the RSI):
Under the micro-enterprise tax regime
Benefiting from the new micro-social regime
- For an option for 2017, the 2015 income should be compared to the reference tax income of 26,791 euros (2015 income tax scale for the 2016 taxes).
- The option must be notified at the time of creation (at the latest on the last day of the third month following the date of creation) or, for a self-employed person already in activity, at the latest on December 31 for an application on January 1 of the next year.
What is the amount of the final tax payment for income tax?
- 1% for merchandise sales activities,
- 1.7% for service provision activities,
2.2% for liberal activities
What are the obligations for income tax and social contributions?
The Auto-Entrepreneur must communicate quarterly or monthly a turnover declaration form. If the turnover of the Auto-Entrepreneur is zero, the Auto-Entrepreneur must enter “0” in the income tax return.
Otherwise, state the actual turnover achieved during the past period as well as the amount of the corresponding social contributions and contributions, which you will calculate yourself by applying the contribution rate to your turnover.
This declaration, accompanied by payment of the sums due, must be sent:
- For quarterly contributors on April 30, July 31, October 31 and January 31
- For monthly contributors on the last day of each month following the period concerned by the declaration
In the event of the start of activity, the declaration and payment relate to the period between the start of the activity and:
- For quarterly contributors at the end of the following calendar quarter
- For monthly contributors at the end of the third following calendar month