In France, individual entrepreneurs (auto-entrepreneur or micro-entreprise) are required to submit a tax declaration (declaration impot) and a social contribution declaration.
This is a mandatory requirement for anyone running a small business in the country. Let’s go through the process of filing a tax declaration in France and the main points to consider.
Main Points of Filing a Declaration in France
- Taxation Regime:
- If you have chosen the "Micro-fiscal simplifié" regime (simplified tax system), income tax is paid along with social contributions. However, an annual income declaration is still mandatory.
- In the standard regime, your income is included in the general tax declaration (form 2042 C PRO).
- Income: In the tax declaration, you must indicate the gross income (chiffre d'affaires) without deductions or expenses.
Deadlines for Filing a Tax Declaration in France
- Annual Tax Declaration (Impôt sur le revenu): The tax declaration is submitted in spring (usually from April to June) via the portal impots.gouv.fr. The exact deadlines depend on your region and the method of submission (online or paper form).
- Social Contribution Declaration (Urssaf): Submitted monthly or quarterly, depending on the frequency chosen, via the platform Urssaf.
If your business is registered under the simplified tax regime (Micro-fiscal simplifié), here is what you need to know about filing a declaration:
Tax Declaration
- Annual Declaration on impots.gouv.fr: You are required to submit an annual declaration (form 2042 C PRO). The entire gross income for the year (chiffre d'affaires) must be declared, without any deductions or expenses.
- Deadlines: Usually in May or June (exact dates are announced annually).
Steps to Submit Your Tax Declaration in France as an Entrepreneur with a Simplified Tax Regime:
- Prepare the necessary data:
- Your SIRET number.
- Total income (chiffre d'affaires) for the previous year.
- Access to your account on impots.gouv.fr.
- Log in to the portal impots.gouv.fr:
- Log in to your personal account using your fiscal number (tax identification number).
- If you do not yet have an account, create one by entering the details from your tax notification (avis d’imposition).
- Fill in the declaration form:
- Find form 2042 C PRO, which is added to your regular income declaration (form 2042).
- In the section “Revenus non commerciaux ou commerciaux (BIC/BNC)” indicate: your total gross income (chiffre d'affaires brut) and the correct type of activity (trade, services, or mixed).
- Specify the tax regime: If you are under the "micro-fiscal simplifié" regime, select the appropriate option. Otherwise, the income will be taxed at standard rates.
- Submit the declaration: Verify the entered data, confirm and submit the declaration online.
Social Contributions Urssaf
- Monthly or Quarterly Declaration: Depending on the chosen frequency, you declare income through autoentrepreneur.urssaf.fr.
- Indicating Gross Income: Gross income is declared on the platform, and contributions are calculated automatically.
- Submission Deadlines:
- Monthly declaration — until the 30th of the following month.
- Quarterly declaration — until the end of the month following the end of the quarter (e.g., for the first quarter — until April 30th).
How to Submit the Social Contribution Declaration:
- Registration on the Urssaf Platform:
- Go to autoentrepreneur.urssaf.fr.
- Click on "Créer mon compte" (Create an account).
- Enter the details: SIRET number, email address, date of birth, and social security number (NIR).
- Confirm registration via the link sent to your email.
- Log in to your account and submit the declaration:
- Log in and go to the "Déclarer et payer" (Declare and pay) section.
- Enter the income for the quarter, select the type of activity (services, trade), and indicate the amount of gross income (chiffre d'affaires).
- The system will automatically calculate the social contributions.
- Pay Social Contributions: Pay online or save the receipt for later payment.
Filing a tax declaration in France for individual entrepreneurs is a mandatory and relatively simple process if you follow all the rules and deadlines. Whether you have chosen the simplified tax regime (Micro-fiscal simplifié) or the standard regime, it is important to file both tax and social contribution declarations on time to avoid fines and issues with tax authorities.
If you need help with filing your declaration or want to learn more about taxes in France for individual entrepreneurs, do not hesitate to seek consultation!
