The regime’s microenterprise has two important limits. There is a revenue ceiling that allows you to benefit from the micro tax system (BNC or BIC) as well as a turnover ceiling that allows you to benefit from the VAT-based exemption (value added tax).
Here is the amount of each of them as well as the rules applicable in the event of an overrun. A table summarizes all the ceilings applicable to a micro-enterprise.
Micro-BNC or micro-BIC tax system ceilings
To benefit from the micro tax regime, the company must not exceed a certain size. The ceiling depends on the activity carried out. It corresponds to the turnover collected over a calendar year, that is to say the gross receipts. No expenditure should be deducted from this amount to assess compliance with (or exceeding) the limits. When the micro-entrepreneur has to invoice VAT, it is assessed “tax free”.
- To exit the micro regime, the company must exceed this threshold for two consecutive years. The regime ceases to apply from January 1 of the 3rd year. In the event of the start of activity, a pro rata temporize should be applied in order to adjust the ceiling for the first year of activity. It is calculated as follows: number of days of activity / 365.
A micro-entrepreneur can opt for the final payment of income tax. This option frees him from the tax due on the income he generates with his micro-enterprise. To benefit from it, however, he must meet many conditions. Finally, the option is sometimes not wise and it is better, in some cases, to do nothing and stay on the progressive scale of income tax. Here is a file that will help you to know if you should opt for the discharge payment due to the taxation of your income as a micro-entrepreneur. The use of the tax return estimator happens to be essential there.
What is the final payment of the IR of a micro-entrepreneur?
The discharge payment is an immediate payment which will “free” a micro-entrepreneur from the tax that he would normally have had to pay on his professional income. This income tax method is very simple: the entrepreneur declares his gross income each month (or each quarter) and a tax levy is applied and then deducted, at the same time as social contributions. It represents income tax.
The rate of the final payment of income tax depends on the nature of the activity:
- Housing sales or supply activities: 1%
- Commercial and similar services: 1.7%
- Non-commercial service provision: 2.2%
Please note, however, that micro-business income is not subject to the progressive IR scale, but it is still taken into account in the calculation of your reference tax income (RFR) as well as in the determination of your rate. Means of taxation (TMI).
Let us also remember in passing that the option for the discharge payment can only be exercised under certain conditions. The entrepreneur must report to micro-BIC or micro-BNC. In addition, his RFR for the penultimate year must not exceed certain ceilings. They amount to 27,519 euros for a single person in 2020 and, for example, 82,557 euros for a couple with 2 children.