Tax and Social Charges - the "Micro-Fiscal" and "Micro-Social" Options

Information about the taxes and social charges for the self-employed...

The social security regime for self-employed people is different to that of employees. A self-employed person must sign up to the RSI (Régime Social des Indépendants), which provides sickness benefits, maternity leave, and pensions.

Social Charges

The auto-entrepreneur pays social charges (cotisations sociales) under a system known as the micro-social simplifié. These are quarterly (or monthly) deductions based directly on the previous quarter's (or month's) turnover. The sums involved 2015 are:
  • 13.3% of turnover for those re-selling goods or materials
  • 22.9% of turnover for those offering services
  • 22.9% of turnover for those in "liberal" professions where their pension is handled by the caisse d'assurance vieillesse de la CIPAV
  • 22.9% of turnover for those in "liberal" professions where their social security protection is handled by the RSI (Régime Social des Indépendants)

Income Tax

Additionally, the auto-entrepreneur may opt to pay their income tax under a system known as the micro-fiscal simplifié. Again, payments are monthly or quarterly, based on turnover, and are:
  • 1% of turnover for those re-selling goods or materials
  • 1.7%  of turnover for those considered "commercial" or "artisanal"
  • 2.2% of turnover for those in "liberal" professions
Assuming there are no additional revenues, this system means the auto-entrpreneur's income tax is fully paid-up on a "pay as you earn" basis, with no tax bill waiting in the future.

Value Added Tax

The auto-entrepreneur cannot charge nor reclaim value-added tax (TVA). The notice TVA non applicable, article 293 B du CGI must appear on all invoices.

Further Information