The Microenterprise Scheme
The Microenterprise Scheme is a reduced tax regime reserved for sole proprietors and certain limited liability companies.
I. Three conditions to benefit from this scheme
A. A sole trader or certain limited liability companies:
The micro-enterprise scheme concerns primarily individual operators, including those who have adopted the status of EIRL. The micro plans are also open to limited liability companies and EARLs whose sole shareholder is a natural person managing this company. With this exception, companies, regardless of their form or the amount of their turnover, are excluded. - From now on, the micro-BIC and micro-BNC regime can be applied to entrepreneurs even if they are subject to VAT. Consequently, the crossing of the limits of the VAT-based exemption no longer automatically implies the forfeiture of the micro scheme.
B. A capped turnover:
For a sales activity, the micro-BIC scheme applies in 2019 if the turnover in 2018 or 2017 does not exceed €170,000 excluding VAT. - A new company can benefit from the micro-BIC scheme in the year of its creation and the year following its creation. - The micro-BNC scheme applies in 2019 if the revenue in 2018 or 2017 does not exceed €70,000.
C. Excluded activities:
Regardless of the amount of their turnover, operators engaged in certain activities are excluded from this scheme. Rental operations of equipment or durable consumer goods may benefit from the micro-BIC scheme whether or not they are ancillary and related to the company.
II. An Ultra-simplified income tax system
A. No declaration of results or even VAT:
In the absence of a specific results declaration to be filed, the micro-entrepreneur must report on the overall declaration 2042 C PRO the gross annual amount of the turnover or revenue received and, where applicable, the realized capital gains or losses. If placed under the VAT-based exemption regime, the micro-entrepreneur does not have to invoice, pay and file a VAT return. On the invoices delivered to customers, instead of VAT, it must indicate the words "VAT not applicable".
B. A flat-rate evaluation of the benefits:
The net profit subject to the RSI is determined by the tax authorities by applying to the professional income declared excluding VAT a deduction representative of the costs and expenses incurred.