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.
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 2018 are:
- 12.8% of turnover for those re-selling goods or materials
- 22% of turnover for those offering services
- 22% of turnover for those in "liberal" professions
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
cannot charge nor reclaim value-added tax (TVA). The notice TVA non applicable, article 293 B du CGI
must appear on all invoices.