How to complete your Impot form 2042C as an auto-entrepreneur or micro entreprise

By Valérie Aston on 30 April 2011 · Viewed 10047 times · Questions

All French residents have to complete their 2010 income tax form called declaration des revenus 2010 by the 30th May 2011. Now this is a daunting task for most of us and I would strongly advise you to seek professional help not to miss anything out. Impots have a team available to help you make your declaration for free until the end of May, it is particularly helpful to handle various sources of income such as pension, property rental, investments, tax credit, etc. (take a deep breath…)

In this article I have outlined how to complete your French income tax form 2042C for your business. Whether you are an auto-entrepreneur or a micro entreprise, this will help you complete your tax declaration.

Let’s start by looking at the deadlines to complete your 2010 French income tax form, as well as the extra forms you will need to either download or request from your Tresorerie or Tresor Public office. As a reminder, paper forms are posted by Impots between 19th April and 4th May. So if you have not received anything by 10th May and you did register a business in 2010, make sure you go to your local Impots office to request a paper form.

1 - Getting started with your French income tax form

Lets’s get started.

1.1 - Deadlines to complete your 2010 French income tax form

Paper declarations will have to be returned by 31st May at midnight. Opting for the online declaration will enable you to benefit from a 20€ reduction on your first declaration. You will also benefit from a longer deadline according to your location:

  • Zone 1 - departments 01 to 19: 9th June at midnight
  • Zone 2 - departments 20 to 49: 16th June at midnight
  • Zone 3 - departments 50 to 974: 23rd June at midnight

1.2 - Making your first French income tax declaration online

You need to have completed at least one paper income tax declaration before being able to make an online tax declaration. So, if you have made an income tax delcaration in 2009, you will be able to make your first declaration online for your 2010 income. You will need to create an account with www.Impots.gouv.fr.  Get a copy of your 2009 tax declaration or the 2010 Declaration de Revenus form posted to you and look out for your:

  • Numero fiscal
  • Numero de teledeclarant
  • Revenu fiscal de reference, i.e. last income declared.

You will find this information on the top left hand side corner of your pre-filled declaration. Once you have entered this information, a certificate will be issued to you and you will be able to log in within 24 hours to complete your declaration.

1.3 - Which income tax forms do you need

As mentioned before, your Declaration de revenus 2010 should be posted to you, however if you have never had any contact with Impots, you will need to either download a copy of the revelant forms or collect it from their office. You may also require extra forms to declare your auto-entrepreneur income or income earned and taxed abroad.

List of the income tax forms required according to your personal situation:

For a full list of all the income tax forms available visit http://www.impots.gouv.fr. Click on Particuliers > Telechargez vos formulaires par internet (under services sans abonnements). Indicate the year for which you want to download the form (2010).

2 - How to add your auto-entrepreneur income if you have opted for impot liberatoire

If you have opted for the income tax paid at source, impot liberatoire also called regime micro fiscal, you have already declared and paid your income tax on a monthly or quarterly basis for your income earned in 2010. But you still need to declare your overall turnover on the declaration de revenus complementaire form 2042C.

Nothing to worry about, you will not be taxed again! This income will however be taken into account by Impots to work out your overall household called Assiette de revenus, and to ensure that you can remain within the regime micro fiscal in 2011 (25 926€ max per quotient familial). Caisse d’Allocations Familiales will also take this amount into account to work out your family allowance (housing, child allowances),

2.1 - You have opted for regime micro fiscal also called versement liberatoire

Go to section 5 I on page 2 called revenus et plus-values des professions non salariees
Go to Auto Entrepreneurs ayant opte pour le versement liberatoire sur le revenu
Add your total turnover cashed in, i.e. recettes brutes for 2010 under the relevant section

For trading activities go under Revenus Industriels et Commerciaux Professionnels (BIC)

  • 5TA Vente de marchandises: add your total sales goods
  • 5TB Prestation de services et locations meubles : add your total sales for services (teaching, translating, consultants, manual services) and furnished houses rented

For professions liberales go under Benefices Non Commerciaux (BNC)

  • 5TE revenus son commerciaux : teatchers, consultants, programmers

2.2 - You have not paid your income tax yet (i.e. not opted for micro fiscal), you come under regime micro entreprise

For trading activities go under Revenus Industriels et Commerciaux Professionnels (BIC) Go to section B I called Revenus industriels et commerciaux professionnels, under regime micro entreprise, add your turnover cashed in in 2010 chiffre d’affaires brut under the relevant box:

  • 5KO Vente de marchandises: add your total sales goods
  • 5KP Prestation de services et locations meubles : add your total sales for services (teaching, translating, consultants, manual services) and furnished houses rented

For professions liberales go under Benefices Non Commerciaux (BNC). Go to section D 1 called Revenus delcaratifs special ou micro BNC, add your 2010 turnover in box 5HQ Revenus imposables

How is your income tax calculated when you are considered regime micro entreprise
On your income tax form, you are requested to add your 2010 sales called recettes or chiffre d’affaires, without applying any deduction or rebate. Impots will then apply a standard rebate to your turnover, based on your activity, in order to calculate your taxable income called revenus fiscal.

Here is a reminder of the standard rebates applied to micro entreprise according to your activity:

  • Rebate of 71% of trade (vente de marchandises)
  • Rebate of 50% for services
  • Rebate of 34% for professions liberales (BNC)

If you have an EURL, SARL, are udner regime reel simplifie or regime normal, ask your accountant to complete the declaration for you, this is part of their yearly fee.

Once again, please get in touch with your local Impot office to get extra help to complete your income tax declaration with pensions, gite income, dividends, etc. This will avoid some sleepless nights wondering whether you completed the form correctly; plus you will be fully trained for next year’s declaration.


Valerie Lemiere: Start Business in France

About the author: Valérie Aston

I've been helping people who want to start or already have a small business set up in France since 2009. After graduating from a Master of Business Administration (MBA) degree, I worked as a senior marketing consultant in the UK and France for various International companies. I worked as a conseillère en création d'entreprises (senior business advisor) for BGE here in France and run this independent business on a daily basis.